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RAPAPORT... Bidz.com reported that its revenue declined nearly 27 percent year on year to $14.7 million, with wholesale merchandise sales of $866,000 and merchandise sales of $13.7 million for the second quarter that ended on June 30. The online retailer's cost of sales rose 19 percent to $12.5 million and it narrowed its loss by nearly 8 percent to $4.9 million. Revenue generated from Bidz.com fell 50 percent year on year to $8.9 million; however, sales at Modnique jumped 174 percent to $5.7 million. Bidz.com reported working capital of $15.6 million and no debt obligations, but cash provided by operating activities had decreased to $836,000 in the six months that ended on June 30, compared with $5.6 million in cash one year earlier. In the first six months of 2012, accounts receivable decreased by $1.4 million, inventories decreased by $6.8 million, other current assets decreased by $1.7 million and accounts payable decreased by $3.5 million. The NASDAQ notified Bidz.com in January that its listing had fallen out of compliance with the independent director and audit committee requirements and granted the company until May 21 to comply. Bidz.com did not meet that deadline so it requested an extension, which was granted on June 28 and was subsequently allowed until three days after the next annual shareholders’ meeting, November 6, to consider a ''going private'' transaction. Separately, Bidz.com shares fell out of compliance after they had closed under $1 for more than 30 consecutive days in August 2011, and after one additional extension came due just on August 7 this year, Bidz.com stated that it would request another extension. Bidz.com entered into a plan of merger agreement with Glendon Group on May 17, which would take it private. The merger is subject to certain conditions, including the adoption of the agreement by its major shareholders and holders of a majority of outstanding shares.
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