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B&N.com posts 2Q loss
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July 22, 1999: 7:29 a.m. ET
Results surpass expectations by a penny; three-month sales up 243%
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NEW YORK (CNNfn) - Barnesandnoble.com, slightly beating analysts' expectations in its first results as a public company, Thursday posted a net loss of $22 million for the second quarter as it spent heavily on marketing.
The online bookseller, which earlier this month added a music retailing service to its offerings, lost 17 cents per diluted share during the April-June period, narrowing its losses from the year-earlier quarter. In the 1998 period, the New York-based company lost $23.7 million, or 21 cents per share.
Sales skyrocketed 243 percent to $39.1 million, but the company's heavy spending on development and promotion dragged it deep into the red. Sales and marketing expenses alone totaled $22.9 million, while product development set the company back another $4 million.
The company is engaged in a price war with Amazon.com, the leading Internet bookseller.
"We are extremely pleased with our second-quarter performance," CEO Jonathan Bulkeley said in a statement. "All of our key metrics exceeded expectations, illustrating the growing momentum of our business."
BarnesandNoble.com (BNBN), a spin-off of leading brick-and-mortar book retailer Barnes & Noble (BKS), debuted on Wall Street on May 25 after two years in business, raising more than $486 million. As of June 30, the company had a capital base of more than $689 million, including about $623 million in cash, Bulkeley said.
The stock gained 3/8 to close at 19 Wednesday.
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