Geeknet Reduces Net Loss

Fairfax-based Geeknet, Inc. (Nasdaq:GKNT) reported third quarter 2011 financial results today which included another net loss for the quarter.

The online gadget retailer posted a net loss of $2.7 million or $-0.42 cents per diluted share in the third quarter ended September 30, 2011. That was better than the net loss of $3.9 million or $-0.64 million per share in the same time last year.

Recorded revenue for the third quarter of 2011 was $19.7 million versus $14.7 million in the 2010 third quarter.

The company said its ThinkGeek online retailing site brought in $14.7 million in the third quarter, an increase of 38 percent. Media revenue also increased to $5.0 million, up 25 percent.

Total cash and investments at the end of quarter was $24.0 million.

"Geeknet delivered a solid quarter heading into the important holiday season, executing against the Company's business goals and staying on track to deliver profitable growth in 2011", remarked  Ken Langone, Executive Chairman, Geeknet. "Notably, our media business has consistently delivered profitable growth this year and is on track for a record year. This is an important complement to ThinkGeek which historically has delivered seasonally strong revenue and profit in the fourth quarter, and has already delivered 40% revenue growth through the end of September. The changes we have implemented in the past year across the Company are creating the operational efficiencies and organizational alignment that we believe will deliver higher satisfaction for our customers and profitable returns to our shareholders."

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