Mcglaughlin Lost $3 Million 400 Thousand In The Two Quarter.

Mcglaughlin (MCOX. NASDAQ) recently announced its second as of June 30, 2011. quarter The net income of the company in the second quarter was US $58 million 700 thousand, which is almost the same as that of the same period last year, but the net loss in the two quarter was US $3 million 400 thousand, compared with the net profit of 4 million 100 thousand US dollars in the same period last year.

Financial report shows that the Internet was clean in the second quarter of 2011. Do business Revenue grew 25.9% over the same period, and gross profit was $21 million 500 thousand, down 20.1% from the same period last year.

According to the disclosure, the net income of the call center in the two quarter was US $14 million 800 thousand, down 33% from the same period last year. The main reason for the decline is that with the development of the Internet, customers' buying habits have been transferred from the call center to the Internet, and the circulation of catalogues has been reduced. In the two quarter, the net operating income of self operated stores was $6 million, down 18.5% from the same period last year. The decline was mainly due to the decline in the number of self operated stores from the average of 161 in the second quarter of 2010 to the average of 118 in the second quarter of 2011.

The main reason for the decline in gross margin. Mcglaughlin explains that network Sales accounted for an increase in net operating income, and its profits were lower than other channels. The income of the third party brand products increased, its gross margin was lower than its own products and because of fierce competition, more coupons and promotional activities were given to consumers. In addition, the two quarter operating expenses of $26 million 900 thousand, an increase of 22.6% over the same period. In the two quarter, marketing and administrative expenses were $26 million, up 24.1% from the same period last year.

Mcglaughlin, director and chief executive officer of Gu Beichun, said that more and more venture capital poured into the Chinese e-commerce industry in the second quarter, making the industry more competitive. "Although there are many new entrants in this industry, we still see the growth of the wheat net business driven by the Internet platform. Compared with the same period last year, the number of Internet orders increased by 43%, and the average daily visits of the wheat network increased by 47% over the same period last year. The growth of our Internet business reflects our ability to attract new customers through effective market strategies.