Reorganization Factor in 16% Drop in Sales at Egghead.com
The net loss for the fourth quarter was $35 million vs. a net loss of $35.9 million last year.
For fiscal 1998, the company reported consolidated revenue from operations of $293.1 million, a decrease of 18.8 percent from $360.7 million in 1997. The net loss for fiscal 1998 was $50.2 million vs. a net loss of $39.6 million for fiscal 1997.
The company said its fiscal fourth-quarter and year-end results were significantly affected by its re-organization announced in January. The re-organization included the closing of retail stores, a reduction in headquarters staff and the closure of a Sacramento distribution center.
"Closing the retail stores in favor of repositioning Egghead as an Internet commerce company culminates an 18-month period of dramatic change," CEO George Orban said in a prepared statement. "The level of revenues achieved by our ongoing operations in the past fiscal quarter exceeded our expectations, as did our cash position of $67 million. In fiscal 1999, we plan to focus on expanding our merchandise offer, to further leverage our infrastructure, improve our technology and business process, develop our affiliate program and marketing partnerships and enter the international market."