ARTISTdirect PUTS ON THE GOOD FIRST-QUARTER SPIN
A little more than a month after their disappointing IPO, which saw their stock price drop more than 20% amid charges they had inadvertently offered too many options to "consultants," ARTISTdirect reported increased revenues for first quarter 2000 amid ever-widening losses.
Sounds like an Internet company to us.
Net revenue was $4.5 million, up 165% from the $1.7 million generated first-quarter '99, with online revenue of $3.8 million, up 173% from $1.4 million last year. On the other hand, net loss for the quarter reached $11.2 million, compared with a loss of $2.7 million for same period last year. EBITDA (Earnings Before Interest, Tax, Deductions And Amortization) loss was $8.6 million, an improvement from the $12.6 million dropped in fourth-quarter '99.
Said CEO marc geiger',390,400);">marc geiger',390,400);">Marc Geiger: "Our strong first-quarter results demonstrate the soundness of our business model, combining great revenue growth with well-managed operating expenses. We believe our comprehensive music resources and artist-specific channels provide the most compelling experience on the Internet today. Aside from those Bijou Phillips Playboy outtakes, of course."
The company also announced it will spend up to $8 million repurchasing options that were received in violation of securities law. Media reports had speculated ARTISTdirect was liable for up to $33 million in its rescission offer, but officials said their only net cash outlay would be to pay the interest accrued on the shares.
At presstime, shares for the company were at 4 9/16, upjust 1.39%, indicating that all the positive spinning has had little effect on the stock price, leading insiders to believe the company's leadership is ineffectual and its sizzle is minimal.
