- Associated Press - Wednesday, July 14, 2010

CULVER CITY, CALIF. (AP) - Online jewelry retailer Bidz.com said Wednesday it expects to post a loss in the second quarter and is considering a stock buyback of up to $2.5 million.

The company said it anticipates a loss between 2 cents and 3 cents a share for the three months ended in June. It projects revenue will total about $25 million.

Those estimates fall short of Wall Street expectations.

Analysts polled by Thomson Reuters expect Bidz to lose a penny a share for the quarter on revenue of roughly $26 million.

Meanwhile, Bidz said a special committee of the board of directors will consider a stock buyback of up to $2.5 million.

Under a buyback initiative implemented in 2007, some $33.5 million has been authorized for repurchase, the company said.

Bidz has more than $9 million in cash.

Should the buyback go forward, the company expects a block of shares will be sold by Marina Zinberg, sister of Bidz CEO David Zinberg.

Once the transaction is completed, the shares will be retired, reducing the company’s outstanding share count.

The chief executive and his sister have proposed canceling their 10b5-1 stock trading plans if the buyback is completed.

Shares of Bidz.com added 7 cents, or 5.3 percent, to $1.40 on Wednesday.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide