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California | BRIEFLY / RETAILING

Value America's Loss Narrows in 1st Quarter

May 11, 2000|Reuters

Beleaguered online retailer Value America Inc. posted a narrower-than-expected loss for the first quarter and said it has received commitments for as much as $90 million in additional financing. The company, which beat Wall Street analysts' earnings expectations by 10 cents per share, also said its recapitalization plan should lead to profitability by the beginning of 2002. The Charlottesville, Va.-based retailer posted a first-quarter loss of $27.4 million, or 60 cents a share, compared with $34.5 million, or $2.72, a year ago. The company said the improvement was directly attributable to reductions in its general and administrative expenses and improved efficiencies in advertising expenditures. Revenue was $47.2 million, compared with $28 million in the year-ago period. Late last year, the company announced a broad-based restructuring that included slashing half its work force and cutting its product line to focus on offering computers, consumer electronics and office products to consumers and businesses. Value America shares fell 6 cents to close at $1.97 on Nasdaq.

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