GSI loss widens, cites investments

KING OF PRUSSIA , Pa. GSI Commerce Inc. today reported a net loss of $5 million, or 11 cents per share, for its 2007 second quarter ended June 30, compared to a net loss of 8 cents per share, despite seeing growth in both sales and revenue. The company reported that net revenue for the 2007 second quarter increased 10% to $131.3 million from $119.6 million last year. Merchandise sales increased 52% to $316 million from $208 million.

Michael Rubin, chairman, president and ceo of GSI, attributed the loss to investments made during the second and third quarters.

"The secular trends in the industry remain healthy and we remain focused on strong execution as we continue to manage and invest in the business in ways that support both our growth and contribute to our growing annual profitability. I look forward to continued success during the second half of the year," Rubin said.