indicative of the constrained working capital access that Ive discussed previously. Gross profit
for the quarter as adjusted was approximately 3.1 million from ongoing sales, or 7.7 percent of
sales, versus about $5 million, or 8.6 percent, of sales in the same period in 2004. On a pro
forma basis the net loss for the fourth quarter was approximately $1.8 million excluding one-time
items that Ill discuss momentarily and merger-related costs. For the year ended December 31,
2005, cCOSTs net sales were approximately 174.6 million versus net sales of 178.5 million in 2004.
Gross profit in 2005 was 12.4 million compared to 16.3 million in the year earlier period.
Some quantitative numbers for you here. Total number of orders shipped during the fourth quarter
was about 115,000 with an average order value of $374. That compares to $302 in the same quarter
last year. So the average order size is up significantly. Computers along with electronics and
digital imaging continue to be the best product categories in terms of acquiring new customers
which are then leveraged the new customers are then leveraged across other product categories as
they bring them further into the Web site. As of December 31, 2005, eCOST had 1.4 million total
customers compared to one million total customers as of December 31, 2004. Active customers in the
last 12 months as of December 31, 2005, were 468,000 compared to 462,000 as of the same of time in
2004. New customers for the fourth quarter of 2005 totaled 71,000 versus 139,000 new customers
during the same period of 2004. The cost to acquire a new customer, calculated as total
advertising dollars spent in the period divided new customers added in the period, was $19.39 in
the 2005 fourth quarter, up from $14.93 in the same period a year ago. However, compared to the
most recent third quarter, the cost dropped from 23.06 $23.06 in the third quarter, which we
believe indicates some improvements in trend in the effectiveness of our advertising activities at
eCOST. Total advertising expenses for the fourth quarter was 1.4 million compared to two million
for the fourth quarter of 2004.
As I discussed at length in my earlier comments, we continue to execute our integration plan with
eCOST and look forward to capitalizing what we believe is significant growth potential as we move
forward with our merger and maximize the leverage in our technology and corporate infrastructure.
Weve succeed in the first phase of our plan. That was completing the merger in a timely fashion.
Were now actively involved in the second phase of the merger as we work diligently to complete the
integration of our operations and technology. And as I mentioned, we hope to have that in place by
the end of summer this year.
The final key piece of our plan for 2006 is preparing eCOST for what we hope will be a robust
holiday shopping season in November and December of 2006. We believe with the integration
activities that were doing well put the company on a much firmer operational platform. With the
improvement were making on the working capital side, on the customer service side, all these
things should begin to come together where As we get to the end of 2006 we hope to begin then to
see some fruits of our activity in terms of a return for growth and a successful holiday season for
Our goal for 2006 on an overall basis is to build a revenue base of approximately 500 million for
the combined companies and obviously to complete the integration of our operations. However,
PFSweb while PFSwebs service business and the supplies and distributor segment continues to
perform well, as both Tom and I have discussed, Ive got to remind you again that eCOST is