AuctionWatch announced that it reached profitability 3 months ahead of forecast and is introducing a referral program today. The company realized record revenue for the first quarter of 2002 driven by strong customer growth and increased contribution margins. AuctionWatch also expanded its customer base to nearly 100,000 online sellers, up nearly 3 times more than the previous year. The company said it will invest its profits to expand its industry-leading suite of sales management services.

“This achievement represents the beginning of a new era at AuctionWatch,” said Rodrigo Sales, the company's CEO. “Our success is a testament to the strength of our team and to the entrepreneurial spirit of our growing customer base. This also further validates the expanding market for services designed to make the online sales process more efficient and profitable for small businesses. We look forward to continued revenue growth and margin expansion as we expand and improve our product offerings in order to help our customers build a more profitable online sales channel.”

AuctionWatch is experiencing rapid growth in the adoption of its online stores and customer management applications, demonstrating early success in the company’s initiatives to broaden its suite of sales management solutions for small businesses. The number of AuctionWatch powered online stores has doubled over the past year to more than 20,000, with more than 350,000 fixed-price items for sale at any given time. Usage of the company’s customer management product has doubled over the past year as well. Larry Jordan, Vice President of Marketing for AuctionWatch, said over 2 million auctions per month are launched using AuctionWatch services.

Online marketplaces represent a cost-effective sales channel for small businesses looking to reach millions of online buyers. AuctionWatch’s services enable merchants to efficiently distribute large volumes of products across the Internet’s leading marketplaces, and have facilitated the sale of over $1 billion of merchandise on eBay.

AuctionWatch was founded in January1999 and is a leading player in the small-business sales management space. The company is privately held and has received funding from some of the world's leading investments firms. AuctionWatch is headquartered in Silicon Valley with offices in Eastern Europe.

In related news, the company said it is introducing a referral program today, June 12, in which users will receive, for 14 weeks, 10% of fees generated by every qualified user referred. More information about the program is found at http://www.auctionwatch.com/help/affiliate/index.html . AuctionWatch said it will also announce a free 2-week trial for new users.