Home breadcru News breadcru Company breadcru RedEnvelope Inc announces Q2 - 2007 fiscal results

RedEnvelope Inc announces Q2 - 2007 fiscal results

01 Nov '06
3 min read

For the second quarter of fiscal 2007, fulfillment expenses increased to 17.9 percent of net revenues, from 17.0 percent in the second quarter of fiscal 2006, as the Company undertook projects to prepare for the holiday selling season.

General and administrative expenses declined as a percentage of net revenues to 35.5 percent for the second quarter of fiscal 2007, compared to 36.4 percent in the same period last year.

On a dollar basis, general and administrative expenses increased to $5.5 million in the second quarter of fiscal 2007, from $4.8 million in the comparable period in fiscal 2006.

The year-over-year increase was primarily due to $553,000 in stock option expenses, as a result of the adoption of SFAS No. 123.

As of October 1, 2006, RedEnvelope had $3.1 million in cash and short-term investments. In addition, the Company has a $12.5 million revolving credit facility, subject to available borrowing determined by an inventory-based formula, which it believes will be sufficient to fund operations and anticipated capital expenditures for the coming year.

As of October 1, 2006, the Company did not have any outstanding borrowings under this facility. At the end of the second quarter, inventory was $22.9 million, compared to $14.0 million in the prior year, as RedEnvelope has increased its investment in core products, which the Company currently anticipates selling during the upcoming holiday season.

RedEnvelope Inc

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