Onsale 3Q revenue to rise

Look for revenue of up to $91.1 million for Onsale Inc. (Nasdaq: ONSL) in the current quarter.

Third quarter revenue is expected to rise between 8 and 12 percent sequentially, the online retailer and auctioneer said Wednesday. Fourth quarter revenue will rise 15 to 20 percent from the third, the company added. That forecast doesn't include expectations for the operations being acquired from Egghead.com Inc. (Nasdaq: EGGS)

Wall Street was expecting good news. Shares of Onsale gained 1 11/16 to 16 1/4 in regular trading prior to Wednesday's news, which came after market close. The stock was up in after hours trading.

Onsale expects gross margin of 4 to 5 percent for the third quarter and 4 to 6 percent for the fourth. Marketing expenses are targeted at $14 million to $15 million for the September quarter and $17 million to $19 million for the last three months of the year. The company plans to increase its radio and TV advertising.

Engineering, general and administrative costs will be about $6 million for both quarters, Onsale said.

Onsale said it will provide projections for its combined operations with Egghead.com when the merger is completed.