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Friday, January 12, 2001

EMUSIC PLAYS THE "RESTRUCTURING" CARD

Another Netco Struggles To Stay Alive
In a last-ditch attempt to recover from a severe case of dot-com-itis—the malaise that has caused the deaths of several online companies in the past year, EMusic is doing some corporate restructuring in hopes of achieving the extraordinary goal of achieving positive cash flow.

The fledgling digital music company plans to reduce its expenses and focus on its revenue sources of advertising and promotional revenue through RollingStone.com and downloadable music sales on Emusic.com. In addition, the company will reduce its staff 36% and consolidate its two New York offices. Also, EVP/CFO Joseph Howell, Business Development EVP James Chapman and Interim COO, EVP/General Counsel Peter Astiz will be leaving the company. Unloading a few overpaid execs always makes for a penny saved.

EMusic expects these changes to save the company more than $16 million in 2001, the same amount it currently has in cash and cash equivalents.

Emusic will announce its financial results for the fourth quarter Jan. 24, after which the company will conduct a conference call to analyze the figures, with a simultaneous Webcast, provided the net traffic to hotjobs.com doesn't slow down the connection.

And now for the good news/bad news. Emusic shares closed up today—to 75 cents.

 
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