Velocity Express Posts Net Loss for Fourth Quarter, Year

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ackage-delivery and supply chain management firm Velocity Express said Friday it lost $6.4 million or 44 cents a share in its fiscal fourth quarter ended July 1, compared with a loss of $21.3 million or $1.88 a year ago.

or the fiscal year ended July 1, the company’s net loss narrowed to $17.3 million or $1.57 a share from a loss of $49.8 million or $21.02 a share last year.

The company’s fourth-quarter revenue fell to $50.1 million from $57.1 million a year earlier, while revenue for the year tumbled to $202.4 million from $256.7 million in 2005.

Gross profit for the quarter improved to $13.8 million from $11.9 million a year earlier. For the full year, gross profit rose to 56.8 million from $48.3 million in 2005.

n August, Velocity Express acquired package delivery firm CD&L for $3 a share. (Click here for previous coverage.)

"During fiscal year 2006, we dramatically improved our customer service and financial model by completing our conversion to independent contractor drivers, realizing the benefits of our investment in route optimization technology and centralizing functions such as customer service and billing,” said Vincent Wasik, chief executive officer of Velocity Express.

Velocity Express is ranked No. 84 on the Transport Topics 100 listing of the largest for-hire carriers in the United States and Canada.