Parts.com Reports Second Quarter Results
18 July 2000
Parts.com Reports Second Quarter Results
SANFORD, Fla.--July 18, 2000--Parts.com, Inc. (Stock symbol: MIRM), a leading real-time business-to-business e-commerce parts exchange, today announced the results for the quarter ended June 30.For the three-month period ended June 30, 2000, the Company reported $336,886 in net sales, a 645% increase from the three-month period ended March 31, 2000. As compared to the prior period in 1999, net sales declined $42,847, or 11%.
Net loss for the three months ended June 30, 2000 was $.08 per share, as compared with a net loss of $.06 per share for the three-month period in the prior year. The Company noted that the second quarter loss of $.08 per share was 58% lower than that of the three-month period ended March 31, 2000.
The loss for the six months ended June 30, 2000 was attributable mainly to non-cash expenses, including stock-based compensation, depreciation and amortization, which alone accounted for 52% of total expenses for the period and more than half of the total net loss. The balance of the increase in loss was due to expenses incurred in the further development of the parts.com Web site and the continued build-up of the related dealership network. Expenses included marketing, programming/development, and other costs associated with the site.
As of June 30, 2000, stockholders' equity totaled $6.84 million, and net tangible assets reached $5.1 million, compared to $2.3 million and $127,000 respectively for June 30, 1999.
"This a very exciting time for the Company," stated Shawn Lucas, chairman, president and co-CEO of parts.com, Inc. "Traffic to our Website has increased, which has resulted in more orders. We also continue to strengthen our technology/programming department, and we believe that our development team is among the best in the country," continued Mr. Lucas. "With the anticipated roll-out of TradeMotion, (trademotion.com) a suite of software solutions that will supplement revenues already generated by the parts.com marketplace, we believe that we're on the road to profitability. We expect to re-submit our NASDAQ application as soon as we meet all of the listing requirements," concluded Lucas.
About Parts.com(TM)
Parts.com provides a business-to-business e-commerce solution for the $600 billion auto parts industry. The site creates value for participants throughout the supply chain, including manufacturers, distributors, dealerships, collision repair shops, garages, recyclers and insurance companies, as a result of its unique, direct business model which eliminates a number of inefficient links in the supply chain inherent in the auto parts business. The parts.com marketplace and logistics plan enable parts distributors to deliver their product more quickly and cost-effectively than through traditional distribution channels. Parts.com was officially launched on January 23, 2000 and presently has 485 dealers/distributors whose combined auto parts sales, prior to joining parts.com, were in excess of $1.1 billion in 1999. For more information, please visit the Company's Web site at http://www.parts.com.
(This news release includes statements that may constitute forward-looking statements pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Although parts.com believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be met. Factors that could cause actual results to differ materially from parts.com's expectations include the operational performance of parts.com, the Company's success in entering into strategic alliances, parts.com's operational and financial performance, industry conditions, demand for its products, as well as other risks.)