Bidz.com alters CEO compensation plan
Bidz.com, Inc. (Nasdaq: BIDZ) shares are declining after the online auctioneer jewelry reported after Thursday’s close that CEO Dave Zinberg terminated his 10b5-1 trading plan. The Culver City, Calif.-based company’s board reinstated his yearly salary of $290,000 and made Zinberg eligible for an annual bonus, effective March 1. Zinberg’s plan was originally implemented during the summer of 2007, after the chief executive reduced his annual salary to $1 with no stock option grants.
After Thursday’s close, Bidz.com reported fourth-quarter earnings of $8.2 million, or $0.29 per share, up from $1 million, or $0.04 per share, a year earlier. The results met Wall Street analysts’ expectation of earning $0.29 per share.
Quarterly revenue rose to $63.2 million, up 68% from $37.6 million during the year-ago period. Analysts, on average, projected revenue of $63 million.
Going forward, Bidz.com expects first-quarter revenue of between $59 million and $61 million with earnings in the range of $0.14 to $0.16 per share. Wall Street expects earnings of $0.15 per share on $60.8 million in revenue.
For 2008, Bidz projects revenue in the range of $225 million to $230 million, which is a bit less than Wall Street’s view of $231.8 million. Fiscal year earnings are projected to be in the range of $0.49 to $0.53 per share, which meets analysts’ expectations of $0.51 per share.
The firm noted that the outlook does not include its new website Buyz.com, which the company plans to launch soon. The new website will provide additional features, such as diamond search and the ability to customize rings. The firm will use the website to grow international sales by translating Buyz.com into several languages.
The firm has come under fire recently from short-selling outfits and other traders who assert Bidz.com has business connections with convicted felons. Elizabeth Pierce, an analyst who covers Bidz.com for the investment bank Roth Capital Partners, declined to comment because of the controversial nature of the company.
In morning trading, BIDZ shares are down 5.10%, or $0.55, at $10.24. Over the last 52 weeks, shares have ranged from $4.90 to $22.50.
