Geeknet (NASDAQ:GKNT) Q2 Conference Call Ending 30 June
Q2 ending June 30, 2011 conference call.
1:49 Kenneth Langone 2:11 "...as we have said repeatedly Geeknet is committed to profitable growth…"
5:35 "…ThinkGeek ... margin was 8% which is below our 2010 gross margin and can be attributed to primarily to discounts on discontinued inventory as we prepare to bring in new products for the q4 holiday season…" Note: Just as ThinkGeek prepared to bring in the TK-421 (Christmas 2010) and AirVolt May 2010…
6:45 "…looking at the media metrics compared to the 2nd quarter last year monthly unique visitors are up 23%. The number of visits per month are up 10% and SourceForge download page views were 206M, an increase of 30% over q2 last year…7:44…and we remain on track to return the business to profitable growth…"
8:08 Caroline Offutt "…one of the highlights from the quarter was the launch of the iCade desktop arcade cabinet for iPad…the iCade has been extremely well received in the marketplace by both the customers and the media…and the iCade was the gift giving highlight of another successful father's day (q2 2011)…launched over 300 new products in the 2nd quarter…9:33 we are in full swing for 4th quarter planning. We recently completed the final stage of a major infrastructure project to ensure scalability and flexibility of our site and we will be launching a mobile site in advance of q4…9:53 "…another area that is important to our [q4] success is the launch of custom products produced by Geek labs, our internal development group. Geeklabs invented iCade and for the holidays they will be launching over 30 new and exciting products. This innovation is one of our key differentiators….drive higher margins…
10:29 Jeff Drobick "…the media business had a very strong quarter with q2 2011 revenue at an all-time high of $5.8M which is an increase of 22%…over last year…slashdot continues strong growth…continue to see some of the highest engagement levels on the web…11:26 SourceForge…celebrating an important milestone…with over 300,000 open source software projects…and are on track to pass one billion total downloads in the second-half of this year…we will continue our efforts to be the best place for open source for developer collaboration and software distribution…and on slashdot to improve our core site and mobile experiences…invest in our core...improve how we monetize our traffic…
12:45 Katy "…it was a strong 2nd quarter as we continue marching down the path to sustained profitable growth. Recently Geeknet was added to the Russell 3000 and Russell 2000 indices which we believe reflects continued positive momentum in efforts to increase shareholder value..."
13:25 Fred Moran, Benchmark
19:30 Doug Whitman, Whitman Capital *
22:53 James Dobson, Benchmark
24:58 Jeff Drobick, in reply to James Dobson "…as it relates to the media business investment in core R&D…R&D for me is a very big priority…accelerating growth long-term will be built upon innovating in our products in our offerings to our customers for both slashdot and sourceforge and for me it is a priority to invest in R&D and advancing our products and customer experience..."
* Whitman Capital held 132,265 shares of GKNT as of March 31, 2011 as reported by NASDAQ.