Bidz.com has announced its financial results for the fiscal fourth quarter and the year of 2008 ending 31 December 2008. In the said quarter, the net revenue dropped by 45 percent amounting to $35.1 million, while gross margins increased to 34.4 percent from 31.2 percent in the same period last year. Net income slipped by 65 percent to $2.9 million. The retailer’s operating expenses also reduced to $7.6 million from $11.4 million in the same quarter last year. This could partially have been affected by the cost reduction undertaken by the company, in which, it reduced the number of employees from 240 to 165 in 2007.

In the entire year ending December 31, 2008, there was an increase of 11 percent in net revenue amounting to $207.4 million. Profits slipped by 20 percent to $14.4 million and gross margins dropped to 28.3 percent from 29.1 percent in 2007.

Its fourth quarter gross margins increased by 320 basis points, reflecting the retailer’s flexible ability to help it ride over the tide if a tough economy.