Egghead.com Inc said Monday that it has completed its $400m merger with Onsale Inc and projected profitability for the newly- formed internet retailer in the beginning of 2002. Egghead said combined fourth-quarter revenue is expected to be $135m to $140m, reflecting what it describes as short-term uncertainties about customer reaction to the unified web site.
Revenue growth in the first quarter of 2000 is projected to be 10% to 12% over fourth-quarter totals. Gross margins are pegged to be about 3% to 5% in the fourth quarter of 1999 and 4% to 6% in the first quarter. The company expects to take one-time charges related to the merger of $56m in the fourth quarter and $2m in the first quarter. Beyond that, the company expects revenue growth of 45% to 50% for 2000 and 35% to 40% in 2001.
