U.S. Auto Parts Network (NASDAQ: PRTS) reported Q3 EPS of $0.44, versus $0.00 reported last year. Revenue for the quarter came in at $69.5 million versus the consensus estimate of $76.97 million.

• Net sales were $69.5 million compared to $73.8 million.
• Gross margin was 27.4% compared to 29.6%.
• Net income was $0.4 million, or $0.01 per share, compared to $0.9 million or $0.02 per diluted share.
• Adjusted EBITDA (a non-GAAP measure defined below) was $2.5 million compared to $3.6 million.
• Ended the quarter with no revolver debt.

Third Quarter 2018 Operational Highlights vs. Year-Ago Quarter

• Conversion rate increased 70 basis points to 2.7%.
• Average order value increased 4% to $85.
• Revenue capture increased 190 basis points to 87.5%.

Management Commentary

"Earlier this month, the board and I mutually agreed upon a succession plan that will have me stepping down as CEO during the next several months," said Aaron Coleman, CEO of U.S. Auto Parts. "It's been an honor and a privilege to lead such a hard-working group through this dynamic period in our company\'s lifecycle. I look forward to what's in store for the next chapter of my career, as well as the many opportunities ahead for U.S. Auto Parts.

"Turning to the quarterly commentary, during Q3, we continued our work to enhance the customer experience on our e-commerce sites, as reflected by the improvements in conversion and revenue capture. Although we continued to experience lower traffic to our sites, we remain keenly focus on improving our traffic acquisition to return to growth.

"During the quarter, we also experienced lower marketplace sales with one of our channel partners due to a reduction in search presence on their platform. We\'ve gone through similar cycles in the past where a marketplace partner makes an update to their platform that adversely affects our business over the short-term, and we expect this situation to be no different. Ultimately, our marketplace partners reward companies that focus on a quality customer experience and broad product assortment, and we remain very well-positioned in both regards.

"As we exit the year, we will continue to focus on our key initiatives of revitalizing traffic growth to our e-commerce sites and expanding our marketplace channel partnerships. Despite the recent challenges with e-commerce traffic and the platform updates from one of our marketplace partners, we believe U.S. Auto Parts remains in a strong market position and we will continue to focus on returning to growth."

For earnings history and earnings-related data on U.S. Auto Parts Network (PRTS) click here.