Online vehicle dealer lead generator Autobytel.com has reported a net loss for the second quarter of 2001 of $36.6 million or $1.80 per common share.

This compares with a net loss of $9.8 million, or $0.48 per share, for Q2 2000. The company lost $4.1 million, or $0.20 per share, in Q1, 2001.

Q2 revenue was $15.7 million, down 8 percent from revenue of $17.1 million in Q2 2000, and down 6 percent from revenue of $16.7 million in Q1 2001.

For Q2, $1.6 million of total revenue was related to an agreement with General Motors, $1.2 million was related to international fees and licences, and $1.4 million was derived from related products.

Autobytel, based in Irvine, Calif., incurred $33.6 million of Q2 charges from a $21.6 million write down of goodwill associated with the company's acquisition of Carsmart, $6.2 million in costs associated with obsolete international software and write-off of investments in certain ventures, $5.0 million in charges related to the restructuring of Autobytel Europe (ABTE), and $0.8 million in charges related to contract terminations and other costs.

"We believe we will reach break-even in the fourth quarter of 2001 on a combined basis with Autoweb," said Mark Lorimer, president and CEO of Autobytel.com.

On April 11, 2001 Autobytel announced the proposed acquisition of Autoweb which is expected to be finalised during the third quarter.

"Our recent agreement to combine with Autoweb, once completed, will not only expand our market share lead and extend our dealer network, it should make Autobytel.com a leader in automotive information services and provide us with significant manufacturer relationships," Lorimer said.

Due to the uncertain economic environment, which has negatively impacted dealer spending on online marketing, the company experienced "some pressure" on program fees and dealer count during the quarter, according to Lorimer.

"We are confident that, as the new measures we have instituted in our dealer sales and support department take hold, dealers will recognise that Autobytel.com provides one of the most cost effective methods of customer acquisition and will prove to be a key tool in the face of the current economic environment," Lorimer said

On May 1, 2001, Autobytel.com and General Motors launched a 90 day test of locate-to-order online car buying in metropolitan Washington D.C. with Chevrolet dealers. "We are very pleased with the results thus far," Lorimer said. "D.C. metro area consumers appear to like this model and about 80 percent of all the vehicles on the 22 dealer lots are listed online."

On June 28, 2001, the company announced a restructuring of Autobytel Europe (ABTE) to enhance efficiencies. ABTE was formed largely to extend into new businesses with new investors in additional European countries at a time when the capital market climate in general was healthier for online investment.

Autobytel says it intends to continue to do business in Europe.

"Autobytel is committed to exploring opportunities with new and existing partners in the European market and globally on a case-by-case basis," Lorimer said.