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Bidz.com 3Q sales soar 38.2 percent

November 12, 2008

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Los Angeles—Net revenues for online jewelry retailer Bidz.com Inc. increased 38.2 percent to $55.4 million for the third quarter ended Sept. 30, compared with $40.1 million for the same period last year, the company has announced.

Meanwhile, the company's third quarter international sales increased 17.5 percent to $11.4 million.

According to Bidz.com Chief Executive Officer David Zinberg, the company's ability to make adjustments to its operating model, including reducing variable costs in response to changes in consumer demand, is what enabled it to report third-quarter earnings ahead of guidance.

"We have enough flexibility in our operating model to reduce variable costs when we see sales soften and increase spending when sales strengthen. We are also keenly focused on executing on our initiatives that will continue to enhance the Bidz.com customer experience in all areas, while capitalizing on the significant long-term opportunities for our business," Zinberg said in a media release.

Also in the third quarter, the company launched a complete Arabic-language version of its online auction site, as well as generated $17.2 million in business-to-business revenue.

For the nine months ended Sept. 30, net sales increased 39 percent to $172.3 million, compared with $123.9 million for the same period in 2007.

Looking ahead, although Bidz.com performed better than expected in the third quarter, due to significant uncertainty in the economy, the company is taking a cautious approach to the fourth quarter by reducing its revenue estimates to reflect an expected short-term slowdown in its overall business.

For 2008, the company now expects revenue to be in the range of $215 million-$225 million, down from its previous estimate of $240 million-$245 million.

In other Bidz.com news, Leon Kuperman, currently chief technology officer and VP of business development, has also been named president.

"Leon has demonstrated that he is capable of assuming [the role of president], which will increase his responsibilities to our employees, customers and shareholders, in addition to performing his duties as chief technology officer and VP of business development," Zinberg said in a media release. "I look forward to focusing my energies more intently on purchasing and overseeing our key strategic initiatives as I continue to work closely with the management team to grow the business."

Founded in 1998, Bidz.com is an online retailer of jewelry, offering its products through a live auction format as well as a fixed price online retail store, Buyz.com. Bidz.com's auctions are also available in Spanish and Arabic.
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