ARTISTDIRECT REVENUES UP, EMPLOYEES OUT?
Net loss for the quarter was $17.1 million, compared with $26 million for the same period last year. Pro forma loss per share was $0.45 for the third quarter of 2000, compared to pro forma loss per share of $1.26 for the same period last year. We'd like to give a shouout to the accountants in the house.
According to ARTISTdirect Chairman and CEO Marc Geiger, the company anticipates a 30%-40% reduction in EBITDA loss for 2001.
With these numbers in mind, the company set a goal to cut its burn rate by 40% in 2001. According to Webnoize, ARTISTdirect is expected to announce a plan to cut payroll and sales and marketing expenses in the next few weeks. "Those are two places we will pay attention to," said ARTISTdirect CFO James Carroll. The company has 240 employees. For now.
ARTISTdirect will also spend up to $10 million by year's end buying back stock erroneously issued to more than 100 artists.
At press time ARTISTdirect was trading at 78 cents a share, down from its 52-week high of $12.75.
The company's quarterly burn rate has been estimated at around $10 million a quarter, although it does have $97 million in cash. Most of the company's cash reserve comes thanks to $60 million raised in a March IPO and nearly $100 million from BMG, Sony Music, Universal Music and Warner Music Group, as well as Yahoo and Cisneros Television Group.
Geiger hopes to leverage the company's e-commerce partnerships to create a solid business model around music services. Revenues from e-commerce in Q3 jumped 145% to $3.3 million.
ARTISTdirect properties include the Ultimate Band List, iMusic.com and official merchandise sales outlets for artists such as Limp Bizkit, Aerosmith, Korn and Beastie Boys.
