Overstock.com 2006 Annual Report Download - page 113

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As a result of the agreement, the Company deconsolidated certain assets related to the variable interest entity effective
November 30, 2006. The operating results through November 30, 2006 relating to variable interest entity are included in the
consolidated statements of operations. As a result of the deconsolidation, the following assets were removed from the Company's
accounts (in thousands):
Cash $ 102
Accounts Receivable 435
Inventory 5,986
Prepaids 4
Other Long-term assets 175
Total $6,702
27. 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, 2006. 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.
Three Months Ended
Mar. 31,
2005
June 30,
2005
Sept. 30,
2005
Dec. 31,
2005
Mar. 31,
2006
June 30,
2006
Sept. 30,
2006
Dec. 31,
2006
(in thousands, except per share data)
Consolidated Statement of
Operations Data:
Revenue
Direct revenue $ 67,884 $ 60,064 $ 68,449 $ 128,478 $ 79,710 $ 68,770 $ 56,564 $ 98,158
Fulfillment partner revenue 97,997 90,574 99,330 186,540 98,334 90,422 100,321 195,871
Total revenue 165,881 150,638 167,779 315,018 178,044 159,192 156,885 294,029
Cost of goods sold
Direct 58,262 51,567 59,169 113,385 70,703 61,473 51,037 101,730
Fulfillment partner 82,857 76,375 83,317 157,508 84,587 75,411 84,483 164,926
Total cost of goods sold 141,119 127,942 142,486 270,893 154,290 136,884 135,520 266,656
Gross profit 24,762 22,696 25,293 44,125 23,754 22,308 21,365 27,373
Operating expenses:
Sales and marketing 16,826 14,499 17,039 28,791 12,659 11,911 17,282 29,045
Technology 4,099 6,103 7,960 9,702 13,424 14,897 16,157 20,680
General and administrative 7,346 7,566 8,397 9,771 11,850 11,050 11,078 12,859
Restructuring — — — — — — — 5,674
Total operating expenses 28,271 28,168 33,396 48,264 47,933 37,858 44,517 68,258
Operating loss (3,509) (5,472) (8,103) (4,139) (14,179) (15,550) (23,152) (40,885)
Interest income, net 644 896 (1,690) (120) 315 2,215 459 577
Interest expense (1,445) (1,517) (1,264) (1,356) (1,267) (1,275) (1,096) (1,127)
Other income (expense), net — 4,170 11 547 — (1)(6)88
Loss from continuing operations (4,310) (1,923) (11,046) (5,068) (15,131) (14,611) (23,795) (41,347)
Discontinued operations:
Loss from discontinued operations — — (1,356)(1,215)(779)(1,128)(708)(4,267)
Net loss (4,310) (1,923) (12,402) (6,283) (15,910) (15,739) (24,503) (45,614)
Deemed dividend related to redeemable
common stock (46)(47)(47)(45)(33)(33)(33)—
Net loss attributable to common shares $ (4,356) $ (1,970) $ (12,449) $ (6,328) $ (15,943) $ (15,772) $ (24,536) $ (45,614)
Net loss per common share—basic and diluted
Loss from continuing operations $ (0.22) $ (0.10) $ (0.59) $ (0.27) $ (0.78) $ (0.73) $ (1.16) $ (1.95)
Loss from discontinued operations $ — $ — $ (0.07) $ (0.06) $ (0.04) $ (0.05) $ (0.03) $ (0.20)
Net loss per share—basic and diluted $ (0.22) $ (0.10) $ (0.66) $ (0.33) $ (0.82) $ (0.78) $ (1.19) $ (2.15)
Weighted average common shares outstanding
—basic and diluted 19,862 19,709 18,844 19,311 19,385 20,159 20,600 21,163
F-35