Overstock.com Loss Widens

Shares plunge.
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Overstock.com

(OSTK) - Get Report

plunged 15% Monday after the online closeout retailer posted weak third-quarter numbers.

The Salt Lake City-based company lost $25 million, or $1.19 a share, for the quarter ended Sept. 30, compared with a year-ago loss of $12 million, or 66 cents a share.

Revenue dropped to $159 million from $169 million a year earlier.

Analysts surveyed by Thomson Financial were looking for an 82-cent loss on revenue of $181 million.

"The Q3 financial results were poor," CEO Patrick Byrne said in a Monday morning press release. "For the first time in our history, quarterly revenue decreased compared to the prior year. In addition, early fourth-quarter revenue continues to lag slightly behind last year's revenue."

Last year, Overstock filed a lawsuit alleging a wide-ranging conspiracy to manipulate the share price of the Internet retailer.

Overstock alleges that research firm Gradient Analytics was in cahoots with short-sellers including Rocker Partners, which owns a small stake in

TheStreet.com

(TSCM)

, publisher of this Web site.

Both Rocker and Gradient have denied wrongdoing.

TheStreet.com

and James J. Cramer, its co-founder and major shareholder, were subpoenaed in February in connection with a

Securities and Exchange Commission

investigation of Gradient following Overstock's allegations.

The SEC has agreed that it will not, at this time, seek to enforce the portions of the subpoenas issued to the company and other media firms, including

Dow Jones

(DJ)

, that concern communications between journalists and their sources.

"Our suit against Gradient Analytics, Rocker Partners, and their principals remains on appeal with the California Court of Appeals," Overstock said Monday. "We will pursue this action aggressively."

Shares fell $2.61 to $15.16.