Exhibit 99.1
GSI COMMERCE REPORTS FISCAL 2006 SECOND QUARTER OPERATING RESULTS
KING OF PRUSSIA, Pa., July 26 /PRNewswire-FirstCall/ -- GSI Commerce Inc.
(Nasdaq: GSIC) today announced that for its fiscal second quarter ended July 1,
2006, the company reported net revenues of $119.6 million and a net loss of $3.6
million, or $0.08 per share, compared to net revenues of $91.9 million and a net
loss of $2.9 million, or $0.07 per share, for 2005's fiscal second quarter.
Included in net loss and net loss per share for the fiscal second quarter of
2006 is a non-cash charge of approximately $0.4 million, or $0.01 per share, to
reduce the carrying value of the shares owned by the company in Odimo
Incorporated from $1.3 million to approximately $0.9 million, which represents
the market value of the shares as of July 1, 2006. These shares represent a
portion of the consideration received when the company sold certain assets of
Ashford.com to Odimo in fiscal 2002. GSI Commerce did not include this non-cash
charge when it issued guidance for the second quarter and full year on April 26.
Other Financial Highlights
-- Merchandise sales were $208.0 million in the fiscal second quarter of
2006, a 52 percent increase compared to $136.8 million in the same
period in fiscal 2005. A definition of merchandise sales appears later
in this news release under "Non-GAAP Financial Measures."
-- Adjusted EBITDA was $2.8 million in the fiscal second quarter of 2006,
compared to adjusted EBITDA of $2.3 million in the same period in 2005,
an increase of 19 percent. A definition of adjusted EBITDA appears later
in this news release under "Non-GAAP Financial Measures."
-- Gross profit was $46.6 million in the fiscal second quarter of 2006, an
increase of 35 percent compared to $34.4 million in the same period in
2005.
-- Gross margin was 38.9 percent in the fiscal second quarter of 2006, an
increase of 140 basis points from 37.5 percent in the same period in
2005.
-- The company's cash, cash equivalents and marketable securities at the
end of the fiscal second quarter of 2006 was $128.6 million compared to
$156.7 million at the end of fiscal year 2005, and compared to $117.5
million at the end of 2005's fiscal second quarter.
Management Commentary
"We had a successful second quarter marked by strong revenue growth, better
than planned adjusted EBITDA and the signing and launch of our deal with Toys
"R" Us," said Michael G. Rubin, chairman and chief executive officer of GSI
Commerce. "We are pleased with the momentum in our business and continue to
focus on driving strong growth, improving profitability and investing in our
platform."
Fiscal Third Quarter 2006 and Annual Financial Guidance
The following forward-looking statements reflect GSI Commerce's
expectations as of July 26, 2006. Given the risks relating to our business
discussed below and in our public reports, actual results may differ materially.
The company provides the following guidance for the fiscal 2006 third
quarter:
-- Net revenues are expected to be in the range of $105 million to $110
million, or increase between 24 percent and 30 percent.
-- Merchandise sales are expected to be in the range of $205 million to
$212 million, or increase between 62 percent and 67 percent.
-- Product sales are expected to be in the range of $75 million to $79
million, or increase between 10 percent and 15 percent.
-- Service fees are expected to be in the range of $29 million to $31
million, or increase between 77 percent and 89 percent.
-- Net loss is expected to be in the range of $6.7 million to $7.7 million.
-- Adjusted EBITDA loss is expected to be in the range of $0.25 million to
$1.25 million.
-- Depreciation and amortization is expected to be approximately $5.5
million to $6.0 million, compared to $3.7 million in the fiscal third
quarter of 2005.
-- Stock-based compensation expense is expected to be approximately $1.5
million to $2.0 million, compared to $1.1 million in fiscal 2005's third
quarter, and includes the impact of SFAS 123(R), which the company
adopted in the first quarter of fiscal 2006.
-- Net interest income is expected to be approximately $0.4 million to $0.5
million, compared to $0.2 million in fiscal 2005's third quarter.
-- Consistent with fiscal third quarter of 2005, the company does not
intend to record a provision for income taxes in the fiscal third
quarter of 2006.
The company provides the following updated guidance for fiscal year 2006:
-- Net revenues are expected to be in the range of $567 million to $587
million, or an increase of between 29 percent and 33 percent.
-- Merchandise sales are expected to be in the range of $1.1 billion to
$1.15 billion, or an increase of between 61 percent and 69 percent.
-- Product sales are expected to be the range of $440 million to $449
million, or an increase of between 24 percent and 26 percent.
-- Service fees are expected to be the range of $130 million to $137
million, or an increase of between 53 percent and 61 percent.
-- Net income is expected to be in the range of $5.0 million to $6.5
million, or an increase of between 85 percent and 141 percent. Net
income guidance includes $2.0 million of impairment charges taken in the
first two fiscal quarters of 2006 related to the company's investment in
Odimo Incorporated.
-- Adjusted EBITDA is expected to be in the range of $33 million to $35
million, or an increase of between 60 percent and 69 percent.
-- Depreciation and amortization is expected to be approximately $21
million.
-- Stock-based compensation is expected to be approximately $7.0 million
and includes the impact of the adoption of SFAS 123(R).
-- Net interest income is expected to be approximately $2.5 million.
-- A provision for income tax is expected to be in a range of 5 percent to
10 percent of pre-tax income.
-- Capital expenditures are expected to be in the range of $40 million to
$45 million, including expectation to purchase rather than lease the
company's new call center and additional capacity to support incremental
volume.
Key Events Since April 26, 2006
-- The company signed a long-term agreement to provide Toys "R" Us(R) with
technology and customer service for its toysrus.com and babiesrus.com
businesses. The Web stores launched on July 1.
-- The company was subsequently selected to provide marketing services to
Toys "R" Us. The marketing services that GSI Commerce will provide to
Toys "R" Us include online media buying, email creation and delivery,
web site design and digital photography.
-- The company launched Dockers(R) during the second quarter, which is the
second Levi Strauss & Co. brand to go live on the GSI Commerce e-
commerce platform. The company is providing Dockers online store with
technology, fulfillment and customer care operations. Dockers was one of
the two unannounced apparel partners referenced by GSI Commerce in its
fiscal first quarter 2006 operating results news release.
-- In July, the company signed a multiyear agreement to provide a full-
service e-commerce solution for the global fashion company BCBG Max
Azria Group for its BCBG Max Azria and BCBGirls brands. With an expected
launch in the first quarter of 2007, GSI Commerce is providing the Web
stores with online technology, fulfillment and customer care operations.
Revenues from the partner will be recorded as service fees.
-- Also in July, the company signed a multiyear agreement with an unnamed
partner in the health and beauty category. The partner is expected to
launch its e-commerce operations in the fourth quarter of this year.
Revenues from the partner will be recorded as service fees. The
agreement includes technology, fulfillment and customer care.
-- In June, the company elected two new members to its board of
directors, Andrea M. Weiss and Michael J. Donahue. Weiss has 25
years experience in executive and senior management retail positions
and is president and chief executive officer of Retail Consulting
Inc., an international retail consulting company. Donahue, one of
the founders of KPMG Consulting, has more than 20 years experience as
an executive with BearingPoint Inc. and KPMG LLP.
Non-GAAP Financial Measures
This news release contains, and our scheduled conference call will present,
the non-GAAP measures merchandise sales, adjusted EBITDA and certain ratios that
use those measures. Merchandise sales represent the retail value of all sales
transactions, inclusive of freight charges and net of allowances for returns and
discounts, which flow through the GSI Commerce platform, whether or not the
company is the seller of the merchandise or records the full amount of such
sales on its financial statements. GSI Commerce uses merchandise sales as a
metric for operating its business. Variable costs such as fulfillment and
customer service labor expense, order processing costs such as credit card and
bank processing fees and organizational costs such as business management are
related to the amount of sales made through GSI Commerce's platform, whether or
not GSI Commerce records the revenue from such sales. GSI Commerce believes that
investors will have a more thorough understanding of its historical expenses and
expense trends if they have visibility to GAAP net revenue as well as the
non-GAAP financial measure merchandise sales and the percentages that such
expenses bear to net revenues and merchandise sales.
GSI Commerce also uses adjusted EBITDA, which represents earnings (or
losses) before interest income/expense, impairment on investment, income taxes,
depreciation and amortization, cumulative effect of change in accounting
principle related to the adoption of SFAS 123(R) and stock-based compensation.
GSI Commerce uses adjusted EBITDA as a means to evaluate its performance period
to period without taking into account certain expenses, particularly stock-based
compensation expense, which historically has been materially impacted by
fluctuations in the price of GSI Commerce's common stock both on a quarterly and
annual basis, and is now materially impacted by the adoption of SFAS 123(R), and
does not consistently reflect GSI Commerce's results from its core business
activities.
These financial measures should be considered in addition to, and not as a
substitute for, or superior to, other measures of financial performance prepared
in accordance with GAAP. The non-GAAP financial measures included in this press
release have been reconciled to the nearest GAAP measures as required under
Securities and Exchange Commission rules and are contained elsewhere in this
release.
Change in Income Statement Presentation
Beginning with the fiscal second quarter 2006, the sales and marketing,
product development, and general and administrative expense lines are reported
inclusive of stock based compensation and the amount of stock based compensation
included in each of the lines is noted parenthetically. Previously, the company
reported these expense lines exclusive of stock based compensation and included
stock based compensation as a separate standalone expense line item. The company
still reports the aggregate stock based compensation amount in the adjusted
EBITDA reconciliation schedule and its statement of cash flow.
Fiscal Second Quarter 2006 Conference Call
GSI Commerce has scheduled a conference call for today at 4:45 p.m. EDT to
review its fiscal 2006 second quarter operating results and to discuss the
company's expectations for future performance. For access to the conference
call, please call the toll-free conference number, 1-866-578-5801, by 4:30 p.m.
EDT, on July 26. The conference passcode is "13489876." Alternatively, to listen
to the call live on the Web, go to the GSI Commerce Web site,
http://www.gsicommerce.com, and click on the link provided on the home page.
Please do this at least 15 minutes prior to the call (4:30 p.m. EDT) to
register, download and install any necessary audio software. The conference call
also will be broadcast live on the Web through CCBN StreetEvents
(http://www.streetevents.com). For those who cannot listen to the live Webcast,
a telephone replay of the conference call will be available one hour after the
completion of the call and remain available through Aug. 28. Access to a
recording of the conference call can be made by calling toll-free, 1-888-
286-8010. The telephone replay passcode is "69860368." In addition, access to an
audio replay of the conference call's Webcast can be found on the home page of
the GSI Commerce Web site. Access to the audio replay of the Webcast also will
remain available through Aug. 28.
About GSI Commerce
GSI Commerce is a leading provider of e-commerce solutions that enable
retailers, branded manufacturers, entertainment companies and professional
sports organizations to operate e-commerce businesses. We provide solutions for
our partners through our integrated e-commerce platform, which is comprised of
three components: technology, logistics and customer care and marketing
services. We provide e-commerce solutions for more than 50 partners.
Forward-Looking Statements
All statements made in this release and to be made in GSI Commerce's fiscal
2006 second quarter conference call, including those in the tape recording,
Webcast replay, live audio and live Webcast of the call, other than statements
of historical fact, are or will be forward-looking statements. The words
"anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "will,"
"would," "should," "guidance," "potential," "continue," "project," "forecast,"
"confident," "prospects," "schedule" and similar expressions typically are used
to identify forward-looking statements. Forward-looking statements are based on
the then-current expectations, beliefs, assumptions, estimates and forecasts
about the business of GSI Commerce. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions which are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or implied by these forward-looking
statements. Factors which may affect GSI Commerce's business, financial
condition and operating results include the effects of changes in the economy,
consumer spending, the financial markets and the industries in which GSI
Commerce and its partners operate, changes affecting the Internet and
e-commerce, the ability of GSI Commerce to develop and maintain relationships
with strategic partners and suppliers and the timing of its establishment,
extension or termination of its relationships with strategic partners, the
ability of GSI Commerce to timely and successfully develop, maintain and protect
its technology, confidential and proprietary information, and product and
service offerings and execute operationally, the ability of GSI Commerce to
attract and retain qualified personnel, the ability of GSI Commerce to
successfully integrate its acquisitions of other businesses, if any, the
performance of acquired businesses and the impact of SFAS 123(R). More
information about potential factors that could affect GSI Commerce can be found
in its most recent Form 10-K, Form 10-Q and other reports and statements filed
by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or
obligation to update these forward-looking statements.
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
December 31, July 1,
2005 2006
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 48,361 $ 20,339
Marketable securities 108,298 108,242
Accounts receivable, net of
allowance of $727 and $547 24,288 22,564
Inventory 34,601 33,311
Prepaid expenses and other
current assets 3,135 6,822
Total current assets 218,683 191,278
Property and equipment, net 87,851 91,327
Goodwill 13,932 17,786
Equity investments and other 1,210 3,393
Other assets, net of accumulated
amortization of $7,885 and $10,157 10,970 11,755
Total assets $ 332,646 $ 315,539
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 58,720 $ 47,024
Accrued expenses and other 42,949 31,301
Deferred revenue 6,573 11,481
Current portion - long-term debt
and other 637 669
Total current liabilities 108,879 90,475
Convertible notes 57,500 57,500
Long-term debt and other 13,094 12,729
Total liabilities 179,473 160,704
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value,
4,990,000 shares authorized; 0
shares issued and outstanding as
of December 31, 2005 and July 1,
2006. - -
Common stock, $0.01 par value,
90,000,000 shares authorized;
44,469,969 and 45,316,404 shares
issued as of December 31, 2005
and July 1, 2006, respectively;
44,469,766 and 45,316,201 shares
outstanding as of December 31,
2005 and July 1, 2006, respectively 445 453
Additional paid in capital 329,103 336,814
Accumulated other comprehensive
loss (2,344) (449)
Accumulated deficit (174,031) (181,983)
Total stockholders' equity 153,173 154,835
Total liabilities and
stockholders' equity $ 332,646 $ 315,539
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
---------------------------- ---------------------------
July 2, July 1, July 2, July 1,
2005 2006 2005 2006
------------ ------------ ------------ ------------
Revenues:
Net revenues from product
sales $ 75,158 $ 94,526 $ 151,810 $ 186,183
Service fee revenues 16,716 25,102 31,422 47,688
Net revenues 91,874 119,628 183,232 233,871
Cost of revenues from product sales 57,439 73,036 115,026 140,102
Gross profit 34,435 46,592 68,206 93,769
Operating expenses:
Sales and marketing, inclusive
of $927,$1,070, $1,110, and
$2,378, respectively, of
stock-based compensation 22,157 28,863 43,199 59,575
Product development, inclusive
of $253, $228, $223, and $420
respectively, of stock-based
compensation 6,689 8,763 13,248 17,166
General and administrative,
inclusive of $553, $550, $155,
and $973, respectively, of
stock-based compensation 5,072 7,884 9,899 15,281
Depreciation and amortization 3,617 4,861 6,739 9,377
Total operating expenses 37,535 50,371 73,085 101,399
Other (income) expense:
Interest expense 413 777 646 1,555
Interest income (475) (1,494) (818) (2,984)
Other (income) expense (93) 140 (208) (10)
Impairment on investment - 379 - 2,027
Total other (income)
expense (155) (198) (380) 588
Loss before income taxes and
cumulative effect of change in
accounting principle (2,945) (3,581) (4,499) (8,218)
Provision for income taxes - - - 2
Net loss before cumulative effect of
change in accounting principle (2,945) (3,581) (4,499) (8,220)
Cumulative effect of change in
accounting principle - - - 268
Net loss $ (2,945) $ (3,581) $ (4,499) $ (7,952)
Basic and diluted loss per share:
Prior to cumulative effect of
change in accounting principle $ (0.07) $ (0.08) $ (0.11) $ (0.19)
Cumulative effect of change in
accounting principle $ - $ - $ - $ 0.01
Net loss $ (0.07) $ (0.08) $ (0.11) $ (0.18)
Weighted average shares outstanding
- basic and diluted 42,551 44,993 42,106 44,836
Prior period Sales and marketing expenses, Product development expenses, and
the General and administrative expenses have been reclassified to be
inclusive of stock based compensation. The purpose of the reclassification
is to conform the prior period amounts to the classifications used in the
current period.
GSI COMMERCE, INC. AND SUBSIDIARIES
ADJUSTED EBITDA AND RECONCILIATION TO GAAP RESULTS
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
---------------------------- ---------------------------
July 2, July 1, July 2, July 1,
2005 2006 2005 2006
------------ ------------ ------------ ------------
Adjusted EBITDA:
Net gain (loss) excluding
interest income and expense,
income taxes, impairment and
charges for stock-based
compensation and depreciation
and amortization $ 2,343 $ 2,790 $ 3,556 $ 5,528
Reconciliation of Adjusted EBITDA to
GAAP results:
Adjusted EBITDA $ 2,343 $ 2,790 $ 3,556 $ 5,528
Interest expense 413 777 646 1,555
Interest income (475) (1,494) (818) (2,984)
Impairment on investment - 379 - 2,027
Income taxes - - - 2
Stock-based compensation 1,733 1,848 1,488 3,771
Depreciation and amortization 3,617 4,861 6,739 9,377
Cumulative effect of change in
accounting principle - - - (268)
Net loss $ (2,945) $ (3,581) $ (4,499) $ (7,952)
GSI COMMERCE, INC. AND SUBSIDIARIES
MERCHANDISE SALES (1) AND RECONCILIATION TO GAAP RESULTS
(Dollars in thousands)
(Unaudited)
Three Months Ended
---------------------------- Variance
July 2, July 1, ---------------------------
2005 2006 Amount %
------------ ------------ ------------ ------------
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 51,392 $ 70,100 $ 18,708 36%
Other 85,367 137,872 52,505 62%
Total merchandise sales
(1) - (a non-GAAP
financial measure) $ 136,759 $ 207,972 $ 71,213 52%
Net revenues - (GAAP basis):
Net revenues from product sales:
Category:
Sporting goods $ 41,899 $ 54,716 $ 12,817 31%
Other 33,259 39,810 6,551 20%
Total net revenues from
product sales 75,158 94,526 19,368 26%
Service fee revenues 16,716 25,102 8,386 50%
Total net revenues -
(GAAP basis) $ 91,874 $ 119,628 $ 27,754 30%
Reconciliation of merchandise sales (1)
to net revenues:
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 51,392 $ 70,100 $ 18,708 36%
Other 85,367 137,872 52,505 62%
Total merchandise sales
(1) - (a non-GAAP
financial measure) 136,759 207,972 71,213 52%
Less:
Sales by partners (2):
Category:
Sporting goods (9,493) (15,384) (5,891) 62%
Other (52,108) (98,062) (45,954) 88%
Total sales by partners (2) (61,601) (113,446) (51,845) 84%
Add:
Service fee revenues 16,716 25,102 8,386 50%
Net revenues - (GAAP
basis) $ 91,874 $ 119,628 $ 27,754 30%
(1) Merchandise sales represents the retail value of all sales
transactions, inclusive of freight charges and net of allowances for
returns and discounts, which flow through the GSI Commerce platform,
whether or not GSI Commerce is the seller of the merchandise or records
the full amount of such sales on its financial statements.
(2) Represents the retail value of all product sales through the GSI
Commerce platform where the inventory is owned by the partner and the
partner is the seller of the merchandise. GSI Commerce records service
fee revenues on these sales.
GSI COMMERCE, INC. AND SUBSIDIARIES
MERCHANDISE SALES (1) AND RECONCILIATION TO GAAP RESULTS
(Dollars in thousands)
(Unaudited)
Six Months Ended
---------------------------- Variance
July 2, July 1, ---------------------------
2005 2006 Amount %
------------ ------------ ------------ ------------
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 98,889 $ 137,548 $ 38,659 39%
Other 174,112 261,375 $ 87,263 50%
Total merchandise sales
(1) - (a non-GAAP
financial measure) $ 273,001 $ 398,923 $ 125,922 46%
Net revenues - (GAAP basis):
Net revenues from product sales:
Category:
Sporting goods $ 81,686 $ 110,552 $ 28,866 35%
Other 70,124 75,631 5,507 8%
Total net revenues from
product sales 151,810 186,183 34,373 23%
Service fee revenues 31,422 47,688 16,266 52%
Total net revenues -
(GAAP basis) $ 183,232 $ 233,871 $ 50,639 28%
Reconciliation of merchandise sales
(1) to net revenues:
Merchandise sales (1) - (a non-GAAP
financial measure):
Category:
Sporting goods $ 98,889 $ 137,548 $ 38,659 39%
Other 174,112 261,375 87,263 50%
Total merchandise sales
(1) - (a non-GAAP
financial measure) 273,001 398,923 125,922 46%
Less:
Sales by partners (2):
Category:
Sporting goods (17,203) (26,996) (9,793) 57%
Other (103,988) (185,744) (81,756) 79%
Total sales by partners (2) (121,191) (212,740) (91,549) 76%
Add:
Service fee revenues 31,422 47,688 16,266 52%
Net revenues - (GAAP
basis) $ 183,232 $ 233,871 $ 50,639 28%
(1) Merchandise sales represents the retail value of all sales
transactions, inclusive of freight charges and net of allowances for
returns and discounts, which flow through the GSI Commerce platform,
whether or not GSI Commerce is the seller of the merchandise or records
the full amount of such sales on its financial statements.
(2) Represents the retail value of all product sales through the GSI
Commerce platform where the inventory is owned by the partner and the
partner is the seller of the merchandise. GSI Commerce records service
fee revenues on these sales.
GSI COMMERCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
----------------------------
July 2, July 1,
2005 2006
------------ ------------
Cash Flows from Operating Activities:
Net loss $ (4,499) $ (7,952)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 6,739 9,377
Stock-based compensation 1,488 3,771
Investment impairment - 2,027
Loss on disposal of equipment - 79
Cumulative effect of change in
accounting principle - (268)
Changes in operating assets and
liabilities:
Accounts receivable, net 3,591 1,777
Inventory 4,665 1,293
Prepaid expenses and other
current assets (759) (3,687)
Other assets, net 99 (2,794)
Accounts payable and accrued
expenses and other (37,281) (24,922)
Deferred revenue (1,923) 5,012
Net cash used in operating
activities (27,880) (16,287)
Cash Flows from Investing Activities:
Acquisition of a controlling
interest of a business, net of
cash acquired - (2,629)
Cash paid for property and
equipment (12,508) (14,314)
Proceeds from government grant
related to corporate
headquarters - 2,925
Other deferred cost (572) 95
Cash paid for equity investments (136) (2,435)
Purchases of marketable
securities (81,728) (128,692)
Sales of marketable securities 43,000 128,775
Net cash used in investing
activities (51,944) (16,275)
Cash Flows from Financing Activities:
Proceeds from convertible notes 57,500 -
Debt issuances costs paid (2,563) -
Repayments of loan (339) -
Repayments of capital lease
obligations (268) (269)
Repayments of mortgage note (71) (98)
Common stock repurchases - (203)
Proceeds from sales of common
stock 28,204 -
Equity issuance costs paid (1,825) -
Proceeds from exercise of common
stock options and warrants 2,605 5,084
Net cash provided by financing
activities 83,243 4,514
Effect of exchange rate changes on
cash and cash equivalents - 26
Net increase/(decrease) in cash and
cash equivalents 3,419 (28,022)
Cash and cash equivalents, beginning
of period 20,064 48,361
Cash and cash equivalents, end of
period $ 23,483 $ 20,339
Contacts:
Michael Conn Greg Ryan
Chief Financial Officer Director, Corp. Communications
tel: 610-491-7002 tel: 610-491-7294
e-mail: connm@gsicommerce.com e-mail: ryang@gsicommerce.com
SOURCE GSI Commerce Inc.
-0- 07/26/2006
/CONTACT: Michael Conn, Chief Financial Officer, +1-610-491-7002,
connm@gsicommerce.com, or Greg Ryan, Director, Corp. Communications,
+1-610-491-7294, ryang@gsicommerce.com, both of GSI Commerce Inc./
/Web site: http://www.gsicommerce.com /
(GSIC)