Overstock.com 2005 Annual Report Download - page 108

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Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
26. QUARTERLY RESULTS OF OPERATIONS (unaudited)
The following tables set forth our unaudited quarterly results of operations data for the eight most recent quarters for the period
ended December 31, 2005. We have prepared this information on the same basis as the Consolidated Statements of Operations and the
information includes all adjustments, consisting only of normal recurring adjustments, that we consider necessary for a fair statement
of our financial position and operating results for the quarters presented. Fiscal 2005 results include the acquisition of Ski West
starting from July 1, 2005.
Three Months Ended
Mar. 31,
2004
June 30,
2004
Sept. 30,
2004
Dec. 31,
2004
Mar. 31,
2005
June 30,
2005
Sept. 30,
2005
(in thousands, except per share data)
Consolidated Statement of Operations
Data:
Revenue
Direct revenue $ 38,580 $ 41,113 $ 43,928 $ 89,589 $ 67,884 $ 60,064 $ 68,449 $ 128,478
Fulfillment partner revenue 43,498 46,679 59,516 131,732 97,997 90,574 100,874 189,502
Total revenue 82,078 87,792 103,444 221,321 165,881 150,638 169,323 317,980
Cost of goods sold
Direct 34,859 36,645 38,491 74,933 58,260 51,562 59,170 113,385
Fulfillment partner 38,793 41,114 51,103 112,458 82,857 76,375 83,589 158,068
Total cost of goods sold 73,652 77,759 89,594 187,391 141,117 127,937 142,759 271,453
Gross profit 8,426 10,033 13,850 33,930 24,764 22,701 26,564 46,527
Operating expenses:
Sales and marketing expenses 4,377 6,605 9,398 20,153 16,825 14,495 17,960 30,371
Technology 1,371 1,830 2,267 2,980 4,095 6,094 8,082 9,861
General and administrative expenses 4,880 3,737 5,109 8,061 7,333 7,531 9,989 11,642
Amortization of stock-based compensation 135 123 18 84 20 53 (8) 7
Total operating expenses 10,763 12,295 16,792 31,278 28,273 28,173 36,023 51,881
Operating income (loss) (2,337) (2,262) (2,942) 2,652 (3,509) (5,472) (9,459) (5,354)
Interest income, net 98 127 168 780 644 896 (1,690) (120)
Interest expense (16) (46) (77) (636) (1,445) (1,517) (1,264) (1,356)
Other income (expense), net 2 — 3 (54) — 4,170(1) 11 547
Net income (loss) (2,253) (2,181) (2,848) 2,742 (4,310) (1,923) (12,402) (6,283)
Deemed dividend related to redeemable
common stock (48) (46) (47) (47) (46) (47) (47) (45)
Net income (loss) attributable to common
shares $ (2,301) $ (2,227) $ (2,895) $ 2,695 $ (4,356) $ (1,970) $ (12,449) $ (6,328)
Net income (loss) per common share
—basic $ (0.14) $ (0.13) $ (0.16) $ 0.14 $ (0.22) $ (0.10) $ (0.66) $ (0.33)
—diluted $ (0.14) $ (0.13) $ (0.16) $ 0.13 $ (0.22) $ (0.10) $ (0.66) $ (0.33)
Weighted average common shares
outstanding
—basic 16,646 17,577 18,284 19,016 19,862 19,709 18,844 19,311
—diluted 16,646 17,577 18,284 20,780 19,862 19,709 18,844 19,311
(1) The gain realized during the quarter ended June 30, 2005 resulted from the retirement of $33.0 million of the 3.75% Convertible Senior Notes. See Note 11.
F-38