BUY.COM® REPORTS RECORD NET PROFITS FOR FOURTH QUARTER 2006 AND FIRST QUARTER 2007; PRIVATE INVESTMENT FIRM CLEARLAKE CAPITAL ACQUIRES A MINORITY STAKE
ALISO VIEJO, Calif., May 31, 2007 - Buy.com, the Internet Superstore™, today reported revenues of $462 million for 2006, an increase of 34% from 2005. Gross profit increased 68% to $59.9 million. At the end of December 2006, the company reported in excess of 10 million cumulative customer accounts.
Net revenue for the fourth quarter of 2006 was $162 million, an increase of 45% over the fourth quarter of 2005. Net income for the fourth quarter of 2006 was $8.8 million. Gross profit increased 99% from the fourth quarter of 2005 to $24.1 million.
Buy.com continued its profitability in the first quarter of 2007 by achieving record first quarter net income of $722,000 (excluding $154,000 of stock-based compensation). "We have a lot of positive momentum evidenced by these great operating results," said Neel Grover, CEO and President of Buy.com.
Buy.com also announced today that it sold 9% of the Company to Clearlake Capital Group. “Buy.com is a strong e-commerce franchise and a unique asset poised for growth in the coming years.” said Behdad Eghbali, Partner and Co-Founder of Clearlake Capital Group who also joined the Buy.com Board of Directors.
Buy.com is a leading e-commerce company with more than 10 million cumulative customer accounts, focused on providing its customers with a rewarding shopping experience and a broad selection of high-quality technology and entertainment retail goods at competitive prices. Buy.com offers over 2 million products in a range of categories, including consumer electronics, computer hardware and software, cell phones, books, music, videos, games, digital music downloads, toys, bags, home & outdoor, baby and sporting goods. Buy.com, founded in June of 1997, is located in Aliso Viejo, California. Buy.com® and The Internet Superstore™ are trademarks of Buy.com Inc. Buy.com currently competes with a variety of companies that can be divided into two broad categories: (i) multi-category retailers such as Amazon.com and Wal-Mart and (ii) specialty retailers or manufacturers such as Best Buy, Circuit City, CompUSA, and Dell.
About Clearlake Capital Group
Clearlake Capital Group is a private investment firm integrating private equity, leveraged finance, and special situations in both private and public market opportunities. Clearlake seeks to partner with world-class management teams to invest in businesses going through transition or expansion with patient long-term capital. The firm has a flexible mandate to invest across the capital structure in corporate divestitures, recapitalizations, going private buyouts, minority equity investments and by accumulating securities in the capital markets. Clearlake's founding principals, Steven Chang, Behdad Eghbali, and Jose Feliciano, have led over 30 investments totaling more than $3 billion of capital in sectors including business services, communications and media, energy and power, healthcare, manufacturing, retail/consumer, and technology.
This news release contains forward-looking statements that are based on our current beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "expects," "intends," "plans," "proposed," "should," "will," and similar expressions intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements represent beliefs and assumptions only as of the date of this news release, and we assume no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.
For media inquiries, contact: