PFSweb Inc's (PFSW) first quarter of 2013 net loss was $2.6 million, or $0.20 per share, compared to net loss of $1.3 million, or $0.10 per share, for the first quarter of 2012.
Net loss for the first quarter of 2013 included $2.3 million of restructuring and other charges while net loss for the first quarter of 2012 included $1.0 million of move related expenses and lease termination costs.
Non-GAAP net income was $21,000, or break even per share, compared to non-GAAP net income of $77,000 or $0.01 per share last year.
Total revenue decreased 13% to $63.1 million, compared to $72.8 million for the first quarter of 2012.
Analysts polled by Thomson Reuters expected the company to report a loss of $0.13 per share on revenues of $51.74 million for the quarter. Analysts' estimates typically exclude special items.
"We are excited about the positive momentum in the business, including the incremental new business opportunities we anticipate from our transcosmos relationship. Given the ramp up time required to contract and implement new client solutions, we expect the benefits of these opportunities will primarily be reflected in our CY014 and forward results. As such, we are reaffirming our guidance for calendar year 2013, with Service Fee Equivalent Revenue expected to be in the range of $110 million to $115 million, and Adjusted EBITDA in the range of $8 million to $10 million, excluding the impact of restructuring and other related expenses which we expect to continue, but to a lesser extent, into the second quarter," said Mike Willoughby, Chief Executive Officer at PFSweb.
Separately, PFSweb announced that it has entered into a strategic relationship with transcosmos Inc. or "TCI", including signing a definitive agreement for an equity investment.
TCI is a outsourcing provider of call center, business process and digital marketing services based in Tokyo, Japan with operations primarily in Japan, South Korea and China.
As part of the agreement, TCI will acquire 3.21 million shares of PFSweb common stock, equivalent to 19.99% of shares outstanding post transaction, at a price of $4.57 per share, valued at about $14.7 million. The price of $4.57 per share representing a 7.5% premium to the Company's closing price on May 14, 2013.
In addition, a TCI representative will join PFSweb's Board of Directors. As per the terms of the transaction, TCI is permitted to acquire up to an additional 5% of the Company's outstanding Common Stock, is subject to a two year lock-up and a customary standstill. The company and TCI also entered into a customary registration rights agreement.
For comments and feedback: editorial@rttnews.com