The pro forma net loss for the quarter of ($33.7) million, or ($0.21) per share, narrowed from a pro forma net loss of ($35.9) million, or ($0.23) per share, in the first quarter of 2000, exceeding analysts’ expectations. Pro forma net loss excludes equity in losses in equity method investees, amortization of goodwill and stock-based compensation charges. GAAP net loss for the quarter was ($39.8) million, or ($0.25) per share, a significant decline from the GAAP net loss of ($57.6) million, or ($0.37) per share for the first quarter of 2000.
Gross margin for the first quarter of 2001 was 23.0 percent, a significant improvement from 15.8 percent in the corresponding period a year ago.
The company’s pro forma loss before Interest, Taxes, Depreciation and Amortization declined substantially in the quarter, to ($27.0) million, from ($37.6) million in the first quarter of 2000, a decrease of 28 percent.
The company acquired more than 945,000 new customers during the first quarter, bringing the cumulative customer count to more than 8.7 million, an increase of 12 percent from year-end 2000.
As of March 31, 2001, the company had $174.5 million of cash and marketable securities, and no debt.
We are pleased with our first quarter results, and we believe our growth in sales and market share is clear validation of the importance of e-commerce in the bookselling industry, said Steve Riggio, vice chairman of Barnes & Noble.com. We continue to achieve these gains with a minimum of promotional offers, such as free shipping, and no off-line advertising. It is evident that more consumers recognize that Barnes & Noble.com and Fatbrain.com are the best places to buy books online. A number of factors are contributing to our success, including improved efficiencies resulting from a companywide consolidation that has streamlined our distribution and fulfillment operations, a further expansion of our vast in-stock selection, the growing presence of Fatbrain.com in the corporate bookselling market, and our commitment to providing industry leading customer service.
Our first quarter results indicate that we are already seeing the benefits of our consolidation effort and are quickly leveraging our fulfillment and customer service network, said Marie Toulantis, chief financial officer of Barnes & Noble.com. In addition, our focused marketing effort enabled us to achieve a 23 percent sales increase with significantly lower marketing expenditures, resulting in the dramatic decline in our marketing-to-sales ratio, which dropped to 12.7 percent in this quarter from 22.4 percent in Q1 2000.
