Irvine,
California-based online motor vehicle dealer lead generator Autobytel.com has
reported a net loss for the second quarter of 2001 of $36.6 million or $1.80
per common share.
This compares with a net loss of $9.8 million, or $0.48 per share, for Q2 2000.
The company lost $4.1 million, or $0.20 per share, in Q1, 2001.
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Q2 revenue was $15.7 million, down 8 percent from revenue of $17.1 million
in Q2 2000, and down 6 percent from revenue of $16.7 million in Q1 2001.
For Q2, $1.6 million of total revenue was related to an agreement with General
Motors, $1.2 million was related to international fees and licences, and $1.4
million was derived from related products.
Autobytel incurred $33.6 million of Q2 charges from a $21.6 million write down
of goodwill associated with the company’s acquisition of Carsmart, $6.2 million
in costs associated with obsolete international software and write-off of investments
in certain ventures, $5.0 million in charges related to the restructuring of
Autobytel Europe (ABTE), and $0.8 million in charges related to contract terminations
and other costs.
“We believe we will reach… break-even in the fourth quarter of 2001
on a combined basis with Autoweb," said the President and CEO of Autobytel.com,
Mark Lorimer.
On April 11, 2001 Autobytel announced the proposed acquisition of Autoweb which
is expected to be finalised during the third quarter.
“Our recent agreement to combine with Autoweb, once completed, will not
only expand our market share lead and extend our dealer network, it should make
Autobytel.com a leader in automotive information services and provide us with
significant manufacturer relationships,” said Lorimer.
Due to the economic environment, which has unfavourably impacted dealer spending
on online marketing, the company experienced “some pressure” on programme
fees and dealer count during the quarter. Lorimer said.
“We are confident that, as the new measures we have instituted in our
dealer sales and support department take hold, dealers will recognise that Autobytel.com
provides one of the most cost effective methods of customer acquisition and
will prove to be a key tool in the face of the current economic environment."
On May 1, 2001, Autobytel.com and General Motors launched a 90 day test of
locate-to-order online car buying in metropolitan Washington D.C. with Chevrolet
dealers.
Said Lorimer: “We are very pleased with the results thus far. D.C. metro
area consumers appear to like this model and bout 80% of all the vehicles on
the 22 dealer lots are listed online.”
On June 28, 2001, the company announced a restructuring of Autobytel Europe
(ABTE) to enhance efficiencies. ABTE was formed largely to extend into new businesses
with new investors in additional European countries at a time when the capital
market climate in general was healthier for online investment.
Autobytel says it intends to continue to do business in Europe.
“Autobytel is committed to exploring opportunities with new and existing partners
in the European market and globally on a case-by-case basis,” Lorimer said.
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