Bidz.com, Inc. Announces Its Securities Have Been Cleared for Quotation on the OTC Bulletin Board

Bidz.com, Inc. (OTCBB:BIDZ), a leading online auctioneer of jewelry, today announced that its securities have been cleared for public quotation on the OTC Bulletin Board. The common stock will begin trading on May 1, 2007, under the symbol BIDZ.

David Zinberg, Chief Executive Officer, commented, “We are very pleased to announce the clearance of quotations of our stock on the OTC Bulletin Board. We are excited to have reached this milestone and to provide liquidity for our shareholders. As a leading online jewelry auction site, we will look to further build brand awareness, increase profitability and continue to generate value for our shareholders.”

In a press release dated April 24, 2007, the Company reported first quarter earnings as summarized below. Net sales increased 29% versus the first quarter of 2006 to $45 million, and net income increased 4% to $3.4 million.

Summary Financials
(in thousands, except share data) Three Months Ended March 31,
2007 2006 change
Net Sales $ 44,724 $ 34,694 28.9%
Income from operations $ 3,611 $ 3,365 7.3%
Income before income tax expense $ 3,530 $ 3,382 7.3%
Net income $ 3,435 $ 3,292 4.3%
Net income per share available to common shareholders – diluted $ 0.14 $ 0.14
Weighted average number of shares outstanding – diluted 23,724,657 23,826,758
Additionally, the Company expects revenues for the second quarter of 2007 to be in the range of $38-$40 million, and anticipates income before income tax of $2.8-$3.3 million. Historically, the second and third quarters are seasonally weaker periods for jewelry sales. For the full year of 2007, the Company expects revenues to be in the range of $170-$180 million, a 33% year-over-year increase at the midpoint, and gross margin of approximately 24-25% which the Company believes is appropriate for managing its business going forward. The Company anticipates income before income tax for 2007 of $13-$14 million, a 145% year-over-year increase at the midpoint.

The Company also noted that it found a material weakness relating to the recording of merchandise inventory and cost of goods sold. This disclosure does not change the results and outlook that were reported in the Company’s press release dated April 24, 2007 and that are summarized above. The Company immediately proceeded to develop new procedures to address the deficiency and expects that they will remediate this weakness over the course of the next quarter. The Company plans to file its Quarterly Report on Form 10Q by May 15, 2007.

About Bidz.com Inc.

Bidz.com, founded in 1998, is an online auctioneer of jewelry. Bidz offers its products through a live auction format requiring only a $1 minimum opening bid. To learn more about Bidz.com visit its website at www.bidz.com.

Top