Buy.Com Posts Narrower Loss in 2nd Quarter

Internet retailer Buy.com reported a second-quarter loss that was significantly smaller than in the year-ago quarter, reflecting an aggressive cost-cutting effort.

But the Aliso Viejo company, which is being acquired and taken private by founder Scott Blum, also said it will cut 50 employees, about 40% of its remaining work force, as it tries to control costs. Buy.com fired about 100 employees earlier this year.

Buy.com, which once promised to sell goods at deep discounts and came to symbolize the irrational exuberance surrounding the Internet, said it lost $5.7 million, or 4 cents a share, in the latest quarter, compared with a loss of $33.6 million, or 26 cents, in the year-ago quarter.

Buy.com said its revenue in the latest quarter fell to $94.9 million from $193.2 million a year ago.

The stock was removed Monday from Nasdaq. The shares closed at 15 cents, down 2 cents in over-the-counter trading.