ARTISTDIRECT SLIPS THROUGH THE NET

ARTISTdirect, Inc.’s Q1 results showed a 25% decline in net revenue from the same period last year, to $3.4 million, but its execs are still upbeat.

"Given the challenging business environment, we are very pleased with our first-quarter results as they reflect our aggressive cost-reduction initiatives," said Chairman/CEO Marc Geiger. "Our goal is to continue the restructuring of our online operations to become cash-flow positive as we move to expand in other areas. And, as part of this initiative, I’ve started re-using paper clips and writing on the back of paper."

The company’s EBITDA loss for the quarter was $8.7 million, up from $8.6 million in the year-ago period, an improvement from the $13.4 million loss in Q4 2000.

As of March 31, cash and short-term investments totaled $79.7 million or $2.11 a share.

"While the market may not be differentiating among companies in the Internet music space, we believe our assets, industry relations, and cash resources provide a unique opportunity to create an independent music entertainment company with an integrated suite of online and offline services," said President/COO Keith Yakomoto. "And if you believe that, I have a Beastie Boys T-shirt you can order online wholesale."

The company reached a preliminary agreement with ex-Interscope founder Ted Field to join the company as Chairman/CEO and launch a new record label venture. The company sees the move as a significant step in creating an integrated online and offline music business consisting of a talent agency, record label and online music network.

The company, which has been threatened with delisting by Nasdaq for falling below $1.00, closed at 63 cents, up 3 cents.