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gnulaw (52.98)

Geeknet (GKNT) - Q2 Ending June 30 Out Wed Aug 3. Langone Must Deliver Profitability(.)

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August 02, 2011 – Comments (7) | RELATED TICKERS: GKNT , IBM , AMZN

Geeknet (GKNT) - Q2 Ending June 30 Out Wednesday Aug 3 - Money For Nothing?

Geeknet reports numbers tomorrow at 14:00 EST. Below are GKNTs numbers as reported for Q2 ending June 30, 2010 and below that Q1 ending March 30, 2011 to put tomorrow's numbers in perspective. The key takeaways are that Thinkgeek's gross margins have deteriorated from 16.73% to 10.33% during these two reporting periods. The Media Division's margins have increased from 61.5% to 71.4%. But the key question with the Media Division is what happened to and is happening with SourceForge and Slashdot for that matter? Simply incomprehensible.


Thinkgeek should again report significant revenue growth tomorrow continuing to represent a superior acquisition candidate for AMZN, BBY et al given they are the only one in this space while sporting equally impressive growth, branding, and recently substantive proprietary products e.g. iCade. That being said, Langone's team and partners need to deliver profitability tomorrow (.) viz a viz economies of scale which should now be fully reflected in tomorrows numbers, in addition, to the appropriate monetization of the media division in perspective with SourceForge's 5M daily downloads and Slashdot's 38.5M page views/mo. Source: Geeknet.

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Geeknet Statistics Revenue (ttm) $99.86M Cash (mrq) $25.62M

SEC Form 10-Q for the Q2 period ending June 30, 2010

Cash: $27.99M (incl short-term investments)


Revenues (3 mo): (in thousands)

 Media: $4,751 (31.03%)

 E-commerce (Thinkgeek):  $10,558 (68.97%) 

 Total:    $15,309

 Media Cost of Revenue: $1,831 (38.54%) (61.46% GM)

 E-commerce cost of Revenue: $8,792 (83.27%) (16.73% GM)

 Total Cost of Revenue: $10,623

 Gross Margin: $4,686 (30.61%) (blended)

 Net Loss: (2,506)


SEC Form 10-Q for the Q2 period ending March 31, 2011

Cash: $25.62M (incl short-term investments)
Revenues (3 mo): (in thousands) 

 Media: $4,711 (23.65%) 

 E-commerce (Thinkgeek):  $15,205 (76.35%) 

 Total:    $19,916


 Media Cost of Revenue: $1,346 (28.57%) (71.43% GM)

 E-commerce cost of Revenue: $13,634 (89.67%) (10.33% GM)

 Total Cost of Revenue: $14,980
 Gross Margin: $ 4,936 (24.78%) (blended)


 Net Loss: (2,386)


________

ttm = Trailing Twelve Months (as of Mar 31, 2011)

mrq = Most Recent Quarter (as of Mar 31, 2011)       
Source: Yahoo! Finance         

7 Comments – Post Your Own

#1) On August 02, 2011 at 7:53 PM, gnulaw (52.98) wrote:

>> But the key question with the Media Division is what happened to and is happening with SourceForge and Slashdot for that matter? Simply incomprehensible.

 

July 29, 2010 Slashdot Struggles to Remain Relevant in The Social Web

June 02, 2011 Github Has Surpassed Sourceforge and Google Code in Popularity

 

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#2) On August 02, 2011 at 9:15 PM, gnulaw (52.98) wrote:

Substantive Smoking Guns made by Geeknet and Langone  against their non-insider shareholders (Timeline in ascending chronological order):

June 08, 2009 SourceForge Files fy'09 10-Q...Ohloh Acquired for $2.6M, 3.7M Shares Repurchased...$4.6M Impairment loss re: Collabnet 

Note: Scott Collison failed to monetize ohloh under his leadership.

July 04, 2009 SourceForge nka Geeknet closes acquisition of Ohloh, names Scott Collison VP Strategy and Business Development.Note: Scott Collison was CEO and founder of Ohloh, which was funded by Jeff @jeff Clavier , Paul Maritz, and Larry "SourceForge" Augustin.

February 20, 2010 What/When are the Minds Behind ohloh.net Doing to Turn Geeknet (LNUX)s World Class Open Source Assets Into Something Extraordinary...into a Viral Loop?

June 16, 2010  Breaking News...Geeknet (LNUX) Chief Product Officer and Head of Corporate Development Abruptly Leaves Geeknet.

Scott leaves Geeknet.

July 10, 2010 [Update2] Geeknet (LNUX) Elects Kenneth G. Langone Chairman of the Board, Former WWE insiders now control 50% of LNUX Board and are largest controlling shareholders. Full Disclosure and EMH...Story Developing.

July 29, 2010 Slashdot Struggles to Remain Relevant in The Social Web

August 11, 2010 Breaking News...Scott Collison Returns to Geeknet (GKNT) as Chief Product Officer.

Scott returns to Geeknet.,

October 05, 2011 [Update1] Breaking...In Play Geeknet (GKNT) announces sale of Ohloh.net to Black Duck Software 

Scott dumps ohloh.

October 16, 2010 [Update2] Geeknet (GKNT) Announces Sale of Ohloh.net to Black Duck Software. What's Next for SourceForge.net and Slashdot.org?

January 16, 2011 "Gee Whiz Beav, I'm feeling really swell about 2011". "That's great Wally, here's a $2 million bonus!". GKNT Shares Tumble as Non-insider Shareholders Have Many Questions.

Langone gives Scott a $2M bonus not tied to performance.

May 13, 2011  [Update2] Geeknet Media Division Amber Alert. GKNT President, CEO Media and GKNT Director (SVP SAY Media) [Abruptly] Announce Resignations.

Scott leaves Geekent again.

June 02, 2011 Github Has Surpassed Sourceforge and Google Code in Popularity

...and the kicker...ohloh, now under Black Duck, provided the data for this article confirming Github's lead...

"...Github is now the most popular open source forge, having surpassed Sourceforge, Google Code and Microsoft's CodePlex in total number of commits for the period of January to May 2011, according to data released today by Black Duck Software..." (See Oct 05 and Oct 16 news above).

WTF?!

Does this suggest a very highly statistically significant correlation between Langone's ability to bring in talent...and significantly not based on performance? I hope I am wrong.

 

 

 

 

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#3) On August 02, 2011 at 9:31 PM, gnulaw (52.98) wrote:

[CORRECTION] >>Does this suggest a very highly statistically significant correlation between Langone's ability to bring in talent...and significantly not based on performance? I hope I am wrong.

Langone's ability to maximize non-insider shareholder value.

 

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#4) On August 03, 2011 at 6:07 AM, gnulaw (52.98) wrote:

 


Motley Fool on GKNT Fearful Stocks for Greedy Investors

"...Judging from the star ratings our CAPS members have assigned to these stocks, it seems investors share Wall Street's nervousness about Geeknet and Schawk. (Can you blame them? According to Yahoo! Finance, precisely zero analysts follow each stock, with the result that lay investors have precisely zero guidance on what to expect from the companies' earnings going forward, and no one likes investing in an unknown quantity.)..."

 

qed.

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#5) On August 03, 2011 at 9:51 PM, gnulaw (52.98) wrote:

 


Company Financials for the Q2 period ending June 30, 2011

Cash: $24.93M (incl short-term investments)
Revenues (3 mo): (in thousands) 

 Media: $5,751 (28.65%) 

 E-commerce (Thinkgeek):  $14,319 (71.35%) 

 Total:    $20,070


 Media Cost of Revenue: $1,459 (25.37%) (74.63% GM)

 E-commerce cost of Revenue: $13,209 (92.25%) (7.75% GM)

 Total Cost of Revenue: $14,668

Gross Margin: $ 5,402 (26.92%) (blended)


 Net Loss: (2,141)

 

The key takeaways are that Thinkgeek's gross margins have further deteriorated from 10.3% to 7.8%. The Media Division's margins have increased from 71.4% to 74.6%. A very questionable Media division per the above timeline. Equally significant is that revenues increased by only $154,000 or .77% over Q1 ending March 31, 2011. 

Money for Nothing. That's a period not a question mark.

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#6) On August 03, 2011 at 10:49 PM, gnulaw (52.98) wrote:

>>Equally significant is that [total] revenues increased by only $154,000 or .77% over Q1 ending March 31, 2011. 

while ThinkGeek's revenues decreased  5.8% Q2 vs Q1 2011.

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#7) On September 05, 2011 at 7:29 PM, gnulaw (52.98) wrote:

(Sep 05, 2011) Atari is making its own Arcade controller for the iPad

"...It seems that Atari wasn’t content just partnering up with ThinkGeek’s iCade arcade cabinet for iPad. They’ve let slip the plans for an Atari Arcade joystick product in a link in the description of their Atari’s Greatest Hits app, reports Macrumors...."

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