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drugstore.com Incorporated


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Jewelry Designer Erickson Beamon Creates the Glenda Party Bag Exclusively for Beauty.com (PR Newswire)

finance.yahoo.com

BELLEVUE, Wash. and NEW YORK, Nov. 16 /PRNewswire-FirstCall/ -- Beauty.com, Inc., a wholly-owned subsidiary of drugstore.com, inc. (Nasdaq: DSCM - News), invites famed jewelry designers Karen

http://finance.yahoo.com/news/Jewelry-Designer-Erickson-prnews-2728842182.html?x=0

Drugstore.com launches new site aimed at sexual health - Drug Store News

www.drugstorenews.com | Oct 1, 2009

BELLEVUE, Wash. (Oct. 1) Drugstore.com on Thursday announced the “grand opening” of its latest destination URL — SexualWellBeing.com, a new online retail boutique with thousands of products for sexual health.

http://www.drugstorenews.com/story.aspx?id=117739

SexualWellBeing.com Celebrates Grand Opening with Special Offer

www.prnewswire.com

SexualWellBeing.com Celebrates Grand Opening with Special Offer. New online retail site features wide selection of sexual health products for men and women.

http://www.prnewswire.com/news-releases/sexualwellbeingcom-celebrates-grand-opening-with-special-offer-63087537.html

drugstore.com, inc. Q3 2009 Earnings Call Transcript (at Seeking Alpha)

seekingalpha.com | Oct 21, 2009

Good day, ladies and gentlemen, thank you for standing by. Welcome to the third quarter 2009 earnings call for drugstore.com conference call. (Operator instructions) This conference is being recorded today Tuesday, October 20th, 2009. I would now like to turn the conference over to our host, Ms.

http://seekingalpha.com/article/167707-drugstore-com-inc-q3-2009-earnings-call-transcript?source=yahoo

 

drugstore.com Helps FSA Customers Stretch Dollars as 'Use It Or Lose It' Approaches - Zibb.com

drugstore.com, inc., (Nasdaq: DSCM) a leading online retailer of health, beauty, vision, and pharmacy products, reminds the 35 million flexible spending account (FSA) participants in the United States that with the end of the year fast approaching, they may need to use the remaining balance in their accounts, or risk losing it. The pre-tax health care accounts can be used for medical expenses, prescription drugs, contact lenses, and eligible non-prescription products.

(Photo: http://www.newscom.com/cgi-bin/prnh/20091117/SF12426)

(Logo: http://www.newscom.com/cgi-bin/prnh/20070813/AQM043LOGO)

drugstore.com's leading online FSA Store http://www.drugstore.com/fsa displays all the eligible products in one, easy to search stop and offers:

    --  More than 3,000 FSA-eligible non-prescription items competitively
        priced, many products are on sale and some offer high-value instant
        'click and save' coupons
    --  Low prices on contact lenses through VisionDirect.com, a drugstore.com
        subsidiary

    --  The fully licensed drugstore.com pharmacy accredited by the National
        Association of Boards of Pharmacy

"While Congress debates health care reform and whether non-prescription products will continue to be FSA eligible in the coming years, participants can still use their FSA funds for this plan year and take advantage of this important benefit," said David Lonczak, vice president and chief marketing officer for drugstore.com, inc. "Regardless of the future of FSA accounts, drugstore.com will always be a reliable source for value-minded consumers to fulfill their health care needs."

The drugstore.com FSA store streamlines the process by managing the required financial substantiation. All FSA debit cards are accepted, and customers who need receipts for reimbursement may print out an FSA-only receipt for any time period simply by logging into their online account.

Most FSA plans require account holders to use all of their health care dollars by the end of the calendar year; other plans give members until March 15, 2010.

Benefits of shopping on drugstore.com include everyday customer perks such as free shipping, 5% cash back through the drugstore.com dollars(TM) loyalty program, valuable "click and save" instant online coupons for many everyday essentials, and much more.

About drugstore.com, inc.

drugstore.com, inc. (NASDAQ: DSCM) is a leading online retailer of health, beauty, vision and pharmacy products. Our portfolio of brands include: drugstore.com(TM), Beauty.com(TM) and VisionDirect.com(TM). All are accessible from http://www.drugstore.com and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 45,000 products at competitive prices.

The drugstore.com pharmacy is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and operates in compliance with federal and state laws and regulations in the United States.


    Media Contact:
    Anne Marshall
    425.372.3464

SOURCE drugstore.com, inc.

http://www.drugstore.com

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Tags: congress   drugs   federal   health   internet   media   medical   nasdaq   online   pharmacy   president   prices   products   regulations   sales  

Companies: drugstore.com, Inc. (DSCM)

 

drugstore.com Reports Strong Revenue Growth and Record Gross Margins in the Third Quarter of 2009 -



    OTC Revenue Growth of 17%, Beauty.com Growth of 19% and Vision Growth
                                     of 11%

                 New Customer Growth of 27% Year-Over-Year

BELLEVUE, Wash., Oct. 20, 2009 (GLOBE NEWSWIRE) -- drugstore.com, inc. (Nasdaq:DSCM), a leading online retailer of health, beauty, vision, and pharmacy products, today announced its financial results for the third quarter ended September 27, 2009. The company reported quarterly net sales of $96.8 million, driven by strong OTC and vision sales. Gross margins increased 70 basis points year-over-year to a record 29.3% and the company's net loss in its seasonally softest quarter was $1.6 million, an improvement of $2.0 million from the same period a year ago. The company reported adjusted EBITDA of $3.0 million which compared to $3.6 million reported in the same period of the prior year. 2008 third quarter adjusted EBITDA results included a $3.4 million contribution from the company's discontinued local-pick-up (LPU) business. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expense, adjusted to exclude the impact of stock-based compensation expense.

"In the third quarter, drugstore.com reported double digit top-line growth as OTC revenues increased by approximately 17% and beauty.com expanded by 19%," said Dawn Lepore, chief executive officer and chairman of the board of drugstore.com, inc. "Our growth was a result of continued strong sales of replenishment and beauty items to our loyal customer base and impressive new customer growth of 27%. This new customer growth was achieved while reducing our marketing cost per new customer to its lowest level since 2007. The initial success of key partnerships contributed to this effort, accounting for roughly 9% of overall new customer additions."

"Gross margins were a record 29.3%, reflecting the continued success of our profitability initiatives, and we reduced operating expenses as a percentage of net sales from the prior year by 310 basis points. As a result, we reported adjusted EBITDA of over $3.0 million, a year-over-year increase of $2.8 million, excluding the EBITDA generated from our discontinued LPU segment in the prior year. Throughout 2009, we have been executing on plan in our core business and continuing to roll out new growth initiatives and partnerships that we believe can add incremental revenue growth, especially in 2010. Most recently, we launched our first microsite -- SexualWellBeing.com(TM) -- and expect to add 5 to 8 more microsites by the end of 2010," concluded Ms. Lepore.

Net loss for the third quarter of 2009 was $1.6 million, or $0.02 per share, compared to a net loss of $3.6 million, or $0.04 per share, for the third quarter of 2008. The third quarter of 2009 net loss includes $1.4 million in non-cash stock-based compensation expense.

Outlook for Fourth Quarter of 2009

For the fourth quarter of 2009, the company is targeting net sales in the range of $107.0 million to $110.0 million, a net loss in the range of $1.8 million to $2.8 million, and adjusted EBITDA in the range of $2.5 million to $3.5 million. Fiscal year 2009 is a 53-week year, with the fourth quarter of 2009 representing a 14-week period.

Financial and Operational Highlights for the Third Quarter of 2009

(All comparisons are made to the third quarter of 2008 and reflect the reporting of the local pick-up business as discontinued operations)

Key Financial Highlights:



 -- Gross margins increased 70 basis points to a record 29.3%.
 -- Total contribution margin dollars increased by approximately 15%
    to $20.4 million.
 -- Total orders grew by approximately 15% to 1.5 million, while
    contribution margin dollars per order were flat at $14.
 -- Operating expenses as a percentage of sales decreased to 31% from
    34.1% in the same period last year.
 -- Free cash flow increased $14.6 million to positive $7.2 million
    for the trailing twelve months compared with negative $7.5 million
    for the trailing twelve months ended September 28, 2008.
 -- Cash, cash equivalents, and marketable securities were $37.4
    million at quarter end.

Net Sales Summary:



 -- Total sales increased over 10% to $96.8 million.
 -- OTC net sales grew approximately 17% to $71.3 million for the
    quarter, including Beauty.com growth of 19%.
 -- Vision net sales grew 11% to $17.2 million for the quarter.
 -- Mail-order pharmacy net sales were $8.2 million.
 -- Average net sales per order were $67.  Average net sales per order
    remained flat sequentially at $57 for OTC and increased to $118
    for vision, and were $163 for mail-order pharmacy.
 -- Net sales from repeat customers (1) represented 77% of net sales.

Key Customer Milestones:



 -- We served approximately 412,000 new customers, inclusive of our
    strategic partnerships, during the quarter, up 27% over the same
    period in the prior year.
 -- Marketing and sales expense per new customer decreased on both a
    sequential and year-over-year basis to approximately $21.50.
 -- We have now served approximately 11.1 million customers since
    inception.
 -- The number of active customers (2) was 2.9 million, up 14% year
    over year.

 1. Net sales from repeat customers exclude Weil Lifestyle, LLC (Weil)
 related Custom Nutrition Services (CNS)  net sales and  reflect only
 the activity of customers making purchases through the Web sites of
 drugstore.com, inc. and its subsidiaries.
 2. Active customer base reflects those customers who have purchased
 at least once within the last 12 months. Both the active customer
 base (a trailing 12-month number) and average annual spend per active
 customer exclude net sales and orders generated by the company's CNS
 fulfillment relationship with Weil, and reflect only the activity of
 customers making purchases through the Web sites of drugstore.com,
 inc. and its subsidiaries.

Conference Call

Investors, analysts, and other interested parties are invited to join the drugstore.com, inc. quarterly conference call on, October 20, 2009 at 4:30 p.m. ET (1:30 p.m. PT). To participate, callers should dial 877-941-8416 (international callers should dial 480-629-9808) five minutes beforehand. Investors may also listen to the conference call live at http://investor.drugstore.com/, by clicking on the "audio" hyperlink. A replay of the call will be available through Saturday, October 24, 2009 by dialing 800-406-7325 and enter passcode 4166337# and international parties should call 303-590-3030 and enter passcode 4166337# beginning two hours after completion of the call.

Non-GAAP Measures

To supplement the consolidated financial statements presented in accordance with GAAP, drugstore.com, inc. uses the non-GAAP measure of adjusted EBITDA, defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expenses, adjusted to exclude the impact of stock-based compensation expense. This non-GAAP measure is provided to enhance the user's overall understanding of the company's current financial performance. Management believes that adjusted EBITDA, as defined, provides useful information to the company and to investors by excluding certain items that may not be indicative of the company's core operating results. In addition, because drugstore.com, inc. has historically provided adjusted EBITDA measures to investors, management believes that including adjusted EBITDA measures provides consistency in the company's financial reporting. However, adjusted EBITDA should not be considered in isolation, or as a substitute for, or as superior to, net income/loss, cash flows, or other consolidated income/loss or cash flow data prepared in accordance with GAAP, or as a measure of the company's profitability or liquidity. Although adjusted EBITDA is frequently used as a measure of operating performance, it is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. Net income/loss is the closest financial measure prepared by the company in accordance with GAAP in terms of comparability to adjusted EBITDA. A reconciliation of adjusted EBITDA to net income/loss is included with the financial statements attached to this release.

In addition, the company uses the non-GAAP measure of free cash flow, defined as net cash provided by (used in) operating activities plus proceeds from the sale of discontinued operations less purchases of fixed assets as disclosed on our consolidated statements of cash flows. Management believes that free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to service debt obligations, make investments, fund acquisitions and for certain other activities. Free cash flow is not a measure determined in accordance with GAAP and may not be defined or calculated by other companies in the same manner. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts payable, including inventory purchases, and accounts receivable. Since free cash flow includes investments in operating assets, management believes this non-GAAP liquidity metric is useful in addition to the most directly comparable GAAP measure of net cash provided by (used in) operating activities, and should not be used as a substitute for it or any other measure determined in accordance with GAAP. A reconciliation of free cash flow to net cash provided by operating activities is included with the supplemental financial schedules attached to this release.

About drugstore.com, inc.

drugstore.com, inc. (Nasdaq:DSCM) is a leading online retailer of health, beauty, vision, and pharmacy products. Our portfolio of brands includes: drugstore.com(TM), Beauty.com(TM), and VisionDirect.com(TM). All are accessible from http://www.drugstore.com and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 45,000 products at competitive prices.

The drugstore.com pharmacy is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and operates in compliance with federal and state laws and regulations in the United States.

The drugstore.com, inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6419

The financial results contained in this press release are preliminary and unaudited. In addition, this press release contains forward-looking statements regarding future events or the future financial and operational performance of drugstore.com, inc. Words such as "expect," "target," "believe," "may," "will," "continue," "start," "should," and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on current expectations, are not guarantees of future performance and involve assumptions, risks, and uncertainties. Actual performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such differences could include, among other things: effects of changes in the economy, changes in consumer spending, fluctuations in the stock market, changes affecting the Internet, online retailing and advertising, difficulties establishing our brand, and building a critical mass of customers, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, risks related to business combinations and strategic alliances, possible tax liabilities relating to the collection of sales tax, consumer trends, the level of competition, seasonality, the timing and success of expansion efforts, changes in senior management, risks related to systems interruptions, possible governmental regulation, and the ability to manage a growing business. Additional information regarding factors that potentially could affect the business, financial condition, and operating results of drugstore.com, inc. is included in the company's periodic filings with the SEC on Forms 10-K, 10-Q, and 8-K. drugstore.com, inc. expressly disclaims any intent or obligation to update any forward-looking statement, except as otherwise specifically stated by it.



                          drugstore.com, inc.
                 Consolidated Statements of Operations
            (in thousands, except share and per share data)
                              (unaudited)

                       Three Months Ended      Nine Months Ended
                   ------------------------- -------------------------
                     Sept. 27,    Sept. 28,    Sept. 27,    Sept. 28,
                       2009         2008         2009         2008
                   ------------ ------------ ------------ ------------

 Net sales         $    96,815  $    87,823  $   295,471  $   272,639

 Costs and
  expenses: (1) (2)
   Cost of sales        68,408       62,708      210,722      196,570
   Fulfillment and
    order
    processing          11,074       10,968       32,976       32,914
   Marketing and
    sales                8,854        7,929       27,424       24,491
   Technology and
    content              6,242        6,009       18,237       16,948
   General and
    administrative       3,824        4,862       11,401       15,156
   Amortization of
    intangible
    assets                  28          206          449          661
                   ------------ ------------ ------------ ------------
     Total costs
      and expenses      98,430       92,682      301,209      286,740
                   ------------ ------------ ------------ ------------

 Operating loss         (1,615)      (4,859)      (5,738)     (14,101)

 Interest income
  (expense), net           (19)         137           38          516
                   ------------ ------------ ------------ ------------

 Loss from
  continuing
  operations            (1,634)      (4,722)      (5,700)     (13,585)
 Income from
  discontinued
  operations                --        1,103        5,946        5,009
                   ------------ ------------ ------------ ------------

 Net income (loss) $    (1,634) $    (3,619) $       246  $    (8,576)
                   ============ ============ ============ ============

 Basic and diluted
  net loss per
  share            $     (0.02) $     (0.04) $      0.00  $     (0.09)
                   ============ ============ ============ ============

 Weighted average
  shares used in
  computation of:
   Basic and
    dilutive net
    loss per share  96,932,740   96,515,737   99,000,725   96,462,259
                   ============ ============ ============ ============

 ---------
 (1) Set forth below are the amounts of stock-based compensation by
 operating function recorded in the Statements of Operations:

   Fulfillment and
    order
    processing     $       134  $       152  $       348  $       440
   Marketing and
    sales                  383          416        1,039        1,148
   Technology and
    content                292          326          756          930
   General and
    administrative         603          952        1,358        3,260
                   ------------ ------------ ------------ ------------
                   $     1,412  $     1,846  $     3,501  $     5,778
                   ============ ============ ============ ============

 (2) Set forth below are the amounts of depreciation by operating
 function recorded in the Statements of Operations:

   Fulfillment and
    order
    processing     $       750  $       769  $     2,241  $     1,913
   Marketing and
    sales                    1            1            3            3
   Technology and
    content              2,350        2,137        6,910        5,618
   General and
    administrative         110          136          333          361
                   ------------ ------------ ------------ ------------
                   $     3,211  $     3,043  $     9,487  $     7,895
                   ============ ============ ============ ============


 SUPPLEMENTAL INFORMATION: Gross Profit and Gross Margin Information:

                       Three Months Ended       Nine Months Ended
 (In thousands,    ------------------------- -------------------------
  unless otherwise   Sept. 27,    Sept. 28,    Sept. 27,    Sept. 28,
  indicated)           2009         2008         2009         2008
                   ------------ ------------ ------------ ------------

 Net sales         $    96,815 $     87,823  $   295,471  $   272,639

 Cost of sales          68,408       62,708      210,722      196,570
                   ------------ ------------ ------------ ------------

 Gross profit      $    28,407 $     25,115  $    84,749  $    76,069
                   ============ ============ ============ ============

 Gross margin             29.3%        28.6%        28.7%        27.9%
                   ============ ============ ============ ============

 SUPPLEMENTAL INFORMATION: Segment Information:

                       Three Months Ended        Nine Months Ended
                   ------------------------- -------------------------
                     Sept. 27,    Sept. 28,    Sept. 27,    Sept. 28,
                       2009         2008         2009         2008
                   ------------ ------------ ------------ ------------

 Net sales:
 Over-the-Counter
  (OTC)            $    71,349  $    61,223  $   214,735  $   190,985
 Vision                 17,227       15,579       52,249       46,865
 Mail-order
  pharmacy               8,239       11,021       28,487       34,789
                   ------------ ------------ ------------ ------------
                   $    96,815  $    87,823  $   295,471  $   272,639
 Cost of sales:
 Over-the-Counter
  (OTC)            $    48,702  $    41,858  $   147,316  $   131,970
 Vision                 13,235       11,888       40,187       36,154
 Mail-order
  pharmacy               6,471        8,962       23,219       28,446
                   ------------ ------------ ------------ ------------
                   $    68,408  $    62,708  $   210,722  $   196,570
 Gross profit:
 Over-the-Counter
  (OTC)                 22,647       19,365       67,419       59,015
 Vision                  3,992        3,691       12,062       10,711
 Mail-order
  pharmacy               1,768        2,059        5,268        6,343
                   ------------ ------------ ------------ ------------
                   $    28,407  $    25,115  $    84,749  $    76,069
                   ============ ============ ============ ============

 Gross margin:
 Over-the-Counter
  (OTC)                   31.7%        31.6%        31.4%        30.9%
 Vision                   23.2%        23.7%        23.1%        22.9%
 Mail-order
  pharmacy                21.5%        18.7%        18.5%        18.2%
                   ------------ ------------ ------------ ------------
                          29.3%        28.6%        28.7%        27.9%
                   ============ ============ ============ ============

 Variable order
  costs:
 Over-the-Counter
  (OTC)            $     6,541  $     5,677  $    19,361  $    17,511
 Vision                    785          745        2,348        2,235
 Mail-order
  pharmacy                 681          904        2,056        2,737
                   ------------ ------------ ------------ ------------
                         8,007        7,326       23,765       22,483
 Contribution
  margin:
 Over-the-Counter
  (OTC)            $    16,106  $    13,688  $    48,058  $    41,504
 Vision                  3,207        2,946        9,714        8,476
 Mail-order
  pharmacy               1,087        1,155        3,212        3,606
                   ------------ ------------ ------------ ------------
                   $    20,400  $    17,789  $    60,984  $    53,586
                   ============ ============ ============ ============


 SUPPLEMENTAL INFORMATION: Reconciliation of Net Income (Loss) to
 Adjusted EBITDA (See Note 3 below):

                      Three Months Ended         Nine Months Ended
 (In thousands,    ------------------------- -------------------------
  unless otherwise   Sept. 27,    Sept. 28,    Sept. 27,    Sept. 28,
  indicated)           2009         2008         2009         2008
                   ------------ ------------ ------------ ------------

 Net income (loss) $    (1,634) $    (3,619) $       246  $    (8,576)
 Amortization of
  intangible assets         28          206          449          661
 Amortization of
  non-cash
  marketing                 --        2,290           --        3,435
 Stock-based
  compensation           1,412        1,846        3,501        5,778
 Depreciation            3,211        3,043        9,487        7,895
 Interest income
  (expense), net            19         (137)         (38)        (516)
                   ------------ ------------ ------------ ------------
   Adjusted EBITDA $     3,036  $     3,629  $    13,645  $     8,677
                   ============ ============ ============ ============

 NOTE 3: Supplemental information related to the company's adjusted
 EBITDA for the three and nine months ended September 27, 2009 and
 September 28, 2008 is presented for informational purposes only and
 is not prepared in accordance with generally accepted accounting
 principles. Adjusted EBITDA is defined as loss before interest,
 taxes, depreciation, and amortization of intangible assets and
 non-cash marketing expense, adjusted to exclude the impact of
 stock-based compensation expense.

 SUPPLEMENTAL INFORMATION: Reconciliation of Forecasted Q4 2009 Net Loss
 Range to Forecasted Q4 2009 Adjusted EBITDA Range (See Note 4 below):

 Range Calculated As:                         Three Months Ended
                                               January 3, 2010
                                             -------------------
 (In thousands,                                Range      Range
 unless otherwise indicated)                   High        Low
                                             --------   --------

 Net loss                                    $(1,800)   $(2,800)
 Amortization of intangible assets                30         30
 Stock-based compensation                      1,750      1,750
 Depreciation                                  3,500      3,500
 Interest income (expense), net                   20         20
                                             --------   --------
                           Adjusted EBITDA   $ 3,500    $ 2,500
                                             ========   ========

 NOTE 4: Fiscal year 2009 is a 53-week year with Q4 2009
 representing a 14-week quarter.

 SUPPLEMENTAL INFORMATION: Reconciliation of Net Cash Provided by
 Operating Activities to Free Cash Flow:

                                                     Trailing
                       Three Months Ended       Twelve Months Ended
 (In thousands,    ------------------------- -------------------------
  unless otherwise   Sept. 27,    Sept. 28,    Sept. 27,    Sept. 28,
  indicated)           2009         2008         2009         2008
                   ------------ ------------ ------------ ------------

 Net cash provided
  by operating
  activities       $       783  $     1,907  $     5,209  $     7,053
 Add: Proceeds from
  sale of
  discontinued
  operations                --           --        9,910           --
 Less: Purchase of
  fixed assets          (2,119)      (2,947)      (7,946)     (14,529)
                   ------------ ------------ ------------ ------------
   Free Cash Flow  $    (1,336) $    (1,040) $     7,173  $    (7,476)
                   ============ ============ ============ ============


                          drugstore.com, inc.
                     Consolidated Balance Sheets
                   (in thousands, except share data)

                                               Sept. 27,    Dec. 28,
                                                 2009         2008
                                             ------------ ------------
                                              (unaudited)   (audited)
 ASSETS
 Current assets:
   Cash and cash equivalents                 $    21,346  $    25,197
   Marketable securities                          16,013       12,997
   Accounts receivable, net of allowances         10,922        9,108
   Inventories                                    32,467       32,704
   Other current assets                            2,783        2,128
   Assets of discontinued operations                  --        5,954
                                             ------------ ------------
     Total current assets                         83,531       88,088

 Fixed assets, net                                24,810       28,306
 Other intangible assets, net                      3,426        3,731
 Goodwill                                         32,202       32,202
 Other long-term assets                              219          222
                                             ------------ ------------
     Total assets                            $   144,188  $   152,549
                                             ============ ============

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
   Accounts payable                          $    31,054  $    31,208
   Accrued compensation                            4,203        4,416
   Accrued marketing expenses                      4,492        4,630
   Other current liabilities                       1,427        4,560
   Current portion of long-term debt                 431        2,998
   Liabilities of discontinued operations             --        5,946
                                             ------------ ------------
     Total current liabilities                    41,607       53,758

 Long-term debt, less current portion              3,021        2,567
 Deferred income taxes                               958          953
 Other long-term liabilities                       1,154        1,071

 Stockholders' equity:
   Common stock, $.0001 par value, stated at
    amounts paid in: Authorized shares -
    250,000,000 Issued shares - 99,993,377
    and 96,547,079 Outstanding shares -
    99,887,958 and 96,547,079 as of September
    27, 2009 and December 28, 2008,
    respectively                                 867,260      864,282
   Treasury stock - 105,419 shares as of
    September 27, 2009                              (151)          --
   Accumulated other comprehensive income
    (loss)                                           (53)          57
   Accumulated deficit                          (769,608)    (770,139)
                                             ------------ ------------
     Total stockholders' equity                   97,448       94,200
                                             ------------ ------------
     Total liabilities and stockholders'
      equity                                 $   144,188  $   152,549
                                             ============ ============


                          drugstore.com, inc.
                 Consolidated Statements of Cash Flows
                            (in thousands)

                        Three Months Ended       Nine Months Ended
                   ------------------------- -------------------------
                     Sept. 27,    Sept. 28,    Sept. 27,    Sept. 28,
                       2009         2008         2009         2008
                   ------------ ------------ ------------ ------------
                                        (unaudited)
 Operating
  activities:
   Net income
    (loss)         $    (1,634) $    (3,619) $       246  $    (8,576)
   Adjustments to
    reconcile net
    income (loss)
    to net cash
    provided by
    operating
    activities:
     Depreciation        3,211        3,043        9,487        7,895
     Amortization
      of intangible
      assets                28          206          449          661
     Stock-based
      compensation       1,412        1,846        3,501        5,778
     Other, net             37          (28)         (15)         (43)
     Changes in:
      Accounts
       receivable         (142)          96       (1,814)         (11)
      Inventories       (2,167)         107          237          498
      Other assets         284         (337)        (655)         459
      Accounts
       payable,
       accrued
       expenses
       and other
       liabilities        (246)        (970)      (3,887)      (2,914)
      Net cash
       provided by
       activities
       of
       discontinued
       operations           --        1,563       (5,946)       2,560
                   ------------ ------------ ------------ ------------
     Net cash
      provided by
      operating
      activities           783        1,907        1,603        6,307

 Investing
  activities:
   Purchases of
    marketable
    securities          (1,985)      (7,772)     (13,138)     (43,116)
   Sales and
    maturities of
    marketable
    securities           1,400       15,606       10,049       49,704
   Proceeds from
    sale of
    discontinued
    operations              --           --        5,946           --
   Purchases of
    fixed assets        (2,119)      (2,947)      (5,812)     (11,063)
   Purchases of
    intangible
    assets                  --           --         (145)          --
                   ------------ ------------ ------------ ------------
     Net cash (used
      in) provided
      by investing
      activities        (2,704)       4,887       (3,100)      (4,475)
                   ------------ ------------ ------------ ------------

 Financing
  activities:
   Proceeds from
    exercise of
    stock options
    and employee
    stock purchase
    plan                     3          102           97          525
   Proceeds from
    line of credit       2,986        1,500        2,986        5,000
   Principal
    payments on
    capital leases,
    term loan
    obligations and
    line of credit      (3,755)      (2,339)      (5,286)      (3,557)
   Purchase of
    treasury stock          --           --         (151)          --
                   ------------ ------------ ------------ ------------
     Net cash (used
      in) provided
      by financing
      activities          (766)        (737)      (2,354)       1,968
                   ------------ ------------ ------------ ------------

       Net increase
        (decrease)
        in cash
        and cash
        equiva-
        lents           (2,687)       6,057       (3,851)       3,800
       Cash and
        cash
        equiva-
        lents,
        beginning
        of period       24,033       16,315       25,197       18,572
                   ------------ ------------ ------------ ------------
       Cash and
        cash
        equiva-
        lents, end
        of period  $    21,346  $    22,372  $    21,346  $    22,372
                   ============ ============ ============ ============

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: drugstore.com, inc.

CONTACT:  Blueshirt Group
Investor Relations:
Brinlea Johnson
212-551-1453
brinlea@blueshirtgroup.com

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Tags: accounting   acquisition   advertising   business   ceo   conference   consumer   debt   deficit   earnings   ebitda   equity   exercise   expansion   federal   financial results   gaap   health   internet   local   market   marketing   nasdaq   note   nutrition   online   otc   pharmacy   prices   products   regulations   revenue   sales   securities   stock option   tax   taxes   technology   treasury  

Companies: drugstore.com, Inc. (DSCM)

 

drugstore.com Guides Above Estimates - Zibb.com

drugstore.com inc. (NASDAQ: DSCM) said it expects fourth quarter revenue of $107.0 million to $110.0 million. The current consensus estimate is revenue of $100.3 million for the quarter ending December 31, 2009.

This earnings guidance summary was provided by EarningsWhispers, a leading provider of earnings expectations - including corporate guidance announcements and analysts' expectations that differ from published estimates. http://www.earningswhispers.com

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Tags: corporate   earnings   nasdaq   revenue  

Companies: drugstore.com, Inc. (DSCM)

 

SexualWellBeing.com Celebrates Grand Opening with Special Offer - Zibb.com

SexualWellBeing.com(TM), a new online retail boutique with thousands of products for sexual health, is celebrating its grand opening by offering customers 20% off purchases of $49 or more. A division of leading online retailer drugstore.com, inc. (Nasdaq: DSCM), SexualWellBeing.com has a wide selection of products for men and women that can be ordered privately online with discreet billing, delivery, packaging, and customer service from drugstore.com(TM).

"Our goal is to provide the best value, selection and customer experience for people shopping for sexual health products online," said David Lonczak, vice president and chief marketing officer, drugstore.com. "Initial response from customers has been positive as we are able to offer a broader selection of products on SexualWellBeing.com than on drugstore.com and look forward to adding products requested by customers in the future."

In addition to a wide assortment of products for sexual health, customers will find items for personal care, grooming, family planning, flowers, and gifts. Product detail pages feature customer reviews from verified buyers and product information to assist with purchasing decisions.

About SexualWellBeing.com

SexualWellBeing.com(TM) is a division of drugstore.com, inc. (NASDAQ:DSCM). Customers may order privately online with discreet billing and packaging from drugstore.com. Customer service is available 24 hours a day, seven days a week by calling 1-866-861-9754, or customers may choose to use the "click-to-chat" option to communicate with customer service using text.

About drugstore.com, inc.

drugstore.com, inc. (NASDAQ:DSCM) is a leading online retailer of health, beauty, vision and pharmacy products. Our portfolio of brands include: drugstore.com(TM), Beauty.com(TM) and VisionDirect.com(TM). All are accessible from http://www.drugstore.com/ and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 45,000 products at competitive prices.

The drugstore.com pharmacy is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and operates in compliance with federal and state laws and regulations in the United States.

    Media Contact:
    Anne Marshall
    drugstore.com
    425.372.3464
    amarshall@drugstore.com

SOURCE drugstore.com, inc.

http://SexualWellBeing.com

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Tags: billing   family   federal   health   internet   media   men   nasdaq   online   packaging   pharmacy   president   prices   products   regulations   retail   women  

Companies: drugstore.com, Inc. (DSCM)

 

Web Sites

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ClickPharmacy.com closes retail shop, refers customers to VIPPS-certified drugstore.com

After seven years of delivering an online store for independent pharmacies nationwide, ClickPharmacy has closed its online retail operation, www.clickpharmacy.com. We would like to thank you for your support during our tenure and allowing us to service your pharmaceutical needs.

http://www.clickpharmacy.com/

DRUGSTORE.COM

it.zibb.com

Drugstore.Com® is a registered trademark used for Providing Information Via a Global Computer Network In the Field of Health, Healthcare, Medicine, Pharmaceuticals, Diagnostic Services, Hair Care, Skin Care, Cosmetics, and Beauty Supplies and owned by drugstore.com, inc..

http://it.zibb.com/trademark/drugstore.com/29697848

Home medical supplies and convalescent aids catalog

Hospital and convalescent help supply company. We search for the best prices on the most reliable equipment and pass them on to you. Browse our extensive catalog to find the perfect helpful product. We specialize in quick shipping and quality products.

http://www.home-medical.net/

Ask a Pharmacist, health product questions and answers by the-drugstore.com

Each month our pharmacist gives you timely information on products, health conditions and frequently asked health concerns or questions. Do you have a question for the pharmacist? Fill out the form below to submit a question.

http://www.the-drugstore.com/qa.asp

Web Sites powered by Bing

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Drugstore.com Incorporated, Bellevue, WA : Reviews and maps - Yahoo ...

local.yahoo.com

Drugstore.com Incorporated, Bellevue, WA : Reviews and maps - Yahoo! Local, 425.372.3200. Get Ratings, Reviews, Photos and more on Yahoo! Local.

http://local.yahoo.com/info-22090960-drugstorecom-incorporated-bellevue?csz=Bellevue%2C+WA

Chia Obamas in Walgreens? No, they can't - Chicago Tribune ...

archives.chicagotribune.com

Walgreens has announced that the commander in chief will not sprout a Chia ... deerfield; social issues; amazon.com inc. tampa; drugstore.com incorporated; barack obama

http://archives.chicagotribune.com/2009/apr/07/news/chi-walgreens-chia

InvestSource "COM" Alert: EGDE, NTES, PCOM, PCLN, DSCM. | M2 Presswire ...

findarticles.com

Netease.com Incorporated (Nasdaq: NTES), P-Com Incorporated (OTCBB: PCOM), Priceline.Com Incorporated (Nasdaq: PCLN) and drugstore.com Incorporated (Nasdaq: DSCM).

http://findarticles.com/p/articles/mi_hb5243/is_200401/ai_n19999839/

ViB drink a cocktail of contradictions - Chicago Tribune

archives.chicagotribune.com

Looking for a cheap alternative to spring break? Well, the first thing you ... jessica simpson; beverage industry; drugstore.com incorporated; spring break

http://archives.chicagotribune.com/2009/mar/13/nation/chi-talk-drinkmar13