eBay INC announces second quarter 2006 financial results

eBay Inc. (Nasdaq: EBAY; www.ebay.com ) reported financial results for its second quarter ended June 30, 2006.

 

eBay reported record consolidated Q2-06 net revenues of $1.411 billion, representing a growth rate of 30% year over year and GAAP operating income of $311 million representing a 22% operating margin. Non-GAAP operating income in Q2-06 was $460 million representing a 33% operating margin.

 

GAAP net income in Q2-06 was $250 million, or $0.17 earnings per diluted share. Non-GAAP net income in Q2-06 was $351 million, or $0.24 earnings per diluted share.

 

These results were in the range of the company's guidance of $1.370 billion to $1.415 billion for net revenues and exceeded the high end of the company's guidance of $0.16 for GAAP earnings per diluted share, and $0.23 for non-GAAP earnings per diluted share.

 

As of June 30, 2006, eBay's cash and marketable securities of nearly $4 billion is at the highest level in the history of the company.

 

The company announced that its Board of Directors has authorized the repurchase of up to $2 billion of the company's stock within the next two years.

 

 "Q2 was a good quarter for the company driven by solid growth across eBay, PayPal and Skype," said Meg Whitman, President and CEO of eBay Inc. "Our stock repurchase plan underscores our confidence in our ability to generate strong profitability and cash flows while investing in the future of the company."

 

The company also announced marketing and pricing initiatives it expects will increase the velocity of trading on the eBay marketplace.

Sourced From : Vaishnavi Corporate Communications