U.S. Auto Parts Network Inc. sees improvement in net sales

U.S. Auto Parts Network, Inc., an online provider of automotive aftermarket parts and accessories, has seen net sales of $40 million for the first quarter 2008. According to a company spokesperson, this represents a decrease of 8.5 percent from the prior year period, and an increase of 7.2 percent from the fourth quarter 2007.

"We are pleased with the early improvement in our key business metrics and are encouraged to have finished the quarter with positive momentum in our online business," says Shane Evangelist, the company's chief executive officer. "With the recent additions to our management team, I am confident we have the necessary capabilities to execute our plan and capture market share."

Net loss for the first quarter of 2008 was $0.9 million, or $0.03 per diluted share, compared to a net profit of $0.2 million, or $0.01 per diluted share for the prior year period. Diluted EPS for the quarters ended March 31, 2008 and 2007 included amortization expense related to intangibles of $2.1 million or $0.07 per diluted share and $2.1 million or $0.08 per diluted share, respectively.

The company generated adjusted EBITDA of $1.8 million in the first quarter of 2008 compared to $3.4 million in the prior year period. Adjusted EBITDA is a non-GAAP financial measure that further adjusts EBITDA to exclude share-based compensation expense of $0.6 million in the first quarter of 2008 and $0.4 million in the prior year period.

The company expects net sales for the coming quarter to be in the range of approximately $40 million to $43 million, with adjusted EBITDA in the range of approximately $1.8 million to $2.5 million. Company executives continue to expect revenues in the second half of 2008 to increase in comparison to the second half of 2007 as the company's 2008 operational strategy takes hold.

For more information about U.S. Auto Parts Network Inc., visit the company's Web site.