eMerge Interactive Inc. (Nasdaq: EMRG) reported a third quarter loss of 13 cents a share Wednesday, on target with First Call's consensus estimates. Revenues boomed.
Shares in the value chain integration software company for the $40 billion U.S. beef production industry were up 2.17 to 11.75 Wednesday morning.
For the quarter, revenues increased to $277 million compared to $16 million in the same period last year and $160 million in the second quarter of 2000.
Net loss before amortization expense was $4.6 million, or 13 cents per share, compared to $4.4 million, or 62 cents a share, in the comparable prior year period. This compares to a net loss before non-cash severance costs and amortization expense of $4.9 million, or 14 cents a share, in the second quarter. The company also said continuous improvements in financial performance measures now indicate that it's on the path to profitability
During the quarter, the number of cattle sold rose to 632,800 head, an increase of 85 percent from the second quarter. On a per head basis, third quarter gross margins increased 32 percent to $5.94 from $4.49 in the second quarter of 2000.
Shares were down 0.12 to 1.38.
Loss was $8.5 million, or 21 cents a share, excluding the impact of non-cash compensation related to stock options which was $990,000 or 3 cents a share, compared to a loss of $4.7 million, or 15 cents a share, in the third quarter of 1999. First Call was expecting a loss of 20 cents a share.
Revenue in the third quarter was $11.3 million, an increase of 26 percent over the second quarter of 2000 and 245 percent from the same period in the prior year. The company also said it had a significant shift in revenue contribution; brick-and-mortar customers constituted 57 percent of total revenue, compared to 44 percent in the second quarter, indicating a significant increase in the percentage of revenue from offline brands. Total revenue in the quarter also included a royalty payment of $650,000 as a result of a patent license agreement with e-centives.
Gross profit in the third quarter was $9.1 million, or 81 percent of total revenues, as compared to $7.6 million, or 85 percent of total revenue, in the second quarter of 2000.
Shares in the Internet directory and local merchant network were up 0.03 to 5.44.
Net loss was $2.5 million or 10 cents a share, which includes $1.0 million or 4 cents a share of non-cash CBS advertising and promotion expenses, making the adjusted net loss 6 per share pro forma. Net loss for the comparable quarter in 1999 was $1.7 million or 9 cents a share pro forma.
Revenue totaled $5.7 million, an increase of 149 percent over revenue of $2.3 million in the third quarter of 1999. The $5.7 million was comprised of approximately 54 percent from advertising revenue, 27 percent from merchant services and 19 percent from syndication and licensing revenue.