FairMarket Inc., an eBay Preferred Solution Provider of ecommerce and auction-management solutions, announced financial results for its third quarter ended September 30, 2002. Revenues were up 6.6% from the second quarter ($1,434,000). While Fairmarket revenues were down 28.6% compared to the third quarter 2001, losses were less: $2.5 million in 3Q 2002 compared to a net loss of $8.8 million in 3Q 2001.
FairMarket ended the third quarter with 50 customers down from 52 customers at the end of the second quarter of 2002. It also signed four new customers that it expects to launch in the fourth quarter of 2002. Two UK customers, one a home entertainment company and the other a company who sells vacation packages, have agreed to use FairMarket's commerce services to sell excess goods and services online. In the U.S., the company signed a major consumer brand company for a loyalty promotion program and a major consumer brand that will use the MarketSelect service to list their products directly on eBay.
"In this phase we are focused on rebuilding our sales process and pipeline with a repeatable offering and the customers signed this quarter represent a validation of that process beginning to show results," said Nanda Krish, President and CEO of FairMarket. "We also continue to focus on strengthening our relationship with eBay and broadening our customer loyalty marketing program capabilities," continued Krish.
The company said it expects to achieve its goal of operating cash flow breakeven during the first half of 2003.
