Styleclick, a provider of e-commerce services and technologies, today reported results for the third quarter 2000.

Pro forma Combined Results
The following pro forma combined results for the third quarter ended September 30, 2000 assume that the merger of Inc and Internet Shopping Network LLC (ISN), a division of USA Networks, Inc (Nasdaq: USAI), occurred at the beginning of the periods presented.

Pro forma combined sales for the third quarter 2000 were $5,291,000 compared to $6,285,000 in the second quarter 2000. This decrease was primarily due to a shift in the company's business focus away from business-to-consumer activities as well as a de-emphasis on the promotion of in preparation of a planned re-positioning of scheduled for fourth quarter 2000. The decrease in sales was partially offset by an increase in revenues from eCommerce services of 128 per cent to $910,000 from $399,000 in the prior quarter.

Pro forma combined gross margins increased to 18 per cent or $956,000 compared to a negative margin of 3.2 per cent or ($200,000) in the prior quarter as a result of an increase in revenues from e-commerce services that are associated with higher gross margins during the third quarter and an inventory write-down of $900,000 in the second quarter.

The pro forma combined net loss, including merger related goodwill for the third quarter decreased to $24,544,000 from $31,053,000 in the prior quarter. The pro forma combined EBITDA (earnings before interest, taxes, depreciation and amortization) loss, excluding goodwill, improved by 42 per cent to $8,734,000 from $15,150,000 in the prior quarter.

The company ended the quarter with a cash position of approximately $27.3m.

"This is the first quarter that we have reported as a merged company and we are beginning to realise efficiencies from combining the two companies. We expect to continue to realize these efficiencies through strict cost controls combined with a scalable business model," said Maurizio Vecchione, CEO of Styleclick. "In addition, we are confident that our current cash position is adequate for executing our business plan at this time."

The company recently announced several strategic alliances including: an agreement with About, Inc, the seventh largest web property. Styleclick will be an exclusive provider of merchandise, fulfillment and customer care on About's network of 700 topic sites. Styleclick also announced a web-based rendering deal with international home furnishings and upholstery firm Barrow Industries and web services agreements with fashion designer Diane von Furstenberg and Dr. Jays, a leading urban sportswear retailer.

About Styleclick
Styleclick is an enhanced commerce services provider and an innovator of electronic commerce technologies. Its services include web design and development, strategic merchandising, product distribution, fulfillment, and customer care. The company represents a variety of entertainment, publishing, and style-related businesses across diverse consumer brand and product categories. A majority-owned subsidiary of USA Networks, Styleclick operates as part of USA Information and Services (USAIS), which coordinates the efforts of USAi's businesses engaged in various forms of transactional interactivity.