Buy.com filed a registration statement late last month with the Securities & Exchange Commission announcing its intention to raise approximately $138 million in net proceeds through an initial public offering. Based in Aliso Viejo, Calif., Buy.com bills itself as an Internet superstore, carrying computer hardware and software, books, videos, DVDs, computer games, music, and clearance inventory. The company also recently acquired BuyGolf.com.
Buy.com had sales of $125.3 million in 1998, its first full year of operation, and a net loss of $17.8 million. For the first nine months of 1999 ended September 30, Buy.com had sales of $397.6 million and a net loss of $80.5 million. The company said that the vast majority of its sales currently come from the sale of computer hardware and software and that it expects that trend to continue for at least the next 12 months. At the end of the quarter, Buy.com had 1.3 million customer accounts.
The e-retailer offers more than 850,000 SKUs through its seven specialty stores. Through its BuyBooks.com site, the company carries more than 480,000 book and audio titles. Book orders are fulfilled by the Ingram Book Co., under an agreement that runs through September 2003.
According to the prospectus, Buy.com plans to use the proceeds from the offering to repay debt, fund the expansion of its infrastructure, expand its sales and marketing activities and finance possible acquisitions. Any remaining funds will be used for working capital.
Buy.com is headed by Gregory Hawkins, who is chairman and CEO. Company founder Scott Blum resigned as chairman and as a member of the board last month, although he remains Buy.com's largest shareholder.
