Overstock.com, the Salt Lake City-based online retailer, returned to positive revenue growth in its third quarter that allowed it to significantly narrow its losses.

The company reported $195.1 million in revenue for the quarter, a 4 percent increase from $186.9 million from the same quarter of 2008.

Overstock.com saw a 7 percent decline in its revenue in second quarter of 2009 that followed in an 8 percent decline in the first quarter compared to the same periods last year.

Company officials hailed a return to revenue growth in a conference call with investors and analysts this week.

"It's nice to be back in positive growth," said Patrick Byrne, chairman and CEO.

The company reported a net loss of $787,000 for the third quarter, a 50 percent decrease from the $1.6 million loss from 2008.

"On a year-to-date basis, the net loss is just $2.5 million," said Steve Chesnut, senior vice president for finance.

Overstock.com's net loss for the first nine months of 2008 was $13.6 million. The company showed a 2 percent decrease in sales and marketing expenses, a figure that Byrne focused on.

"Our marketing dollars just keep getting 15, 20 percent more efficient year after year," he said.

Byrne said the company was prepared for a "rip-roaring Christmas" unless economic conditions dictate otherwise.

"I think we're going to have a great Q4 on both the top line and the bottom line," he said.

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The company saw its share price rise 61 cents or 4.2 percent to $15.08 in trading on Thursday.