ARE ARTISTDIRECT'S Q3 GAINS CUSTOM-MADE?
Net revenue for the period decreased 58% to $2.3 million, compared with $5.6 million in the third quarter of 2000. The company also had a net loss of $19.6 million, compared with a net loss of $16.9 million for the third quarter of 2000. Basic and diluted loss per share was $5.48 for the third quarter, compared to $4.53 for the third quarter of 2000, based upon weighted average shares outstanding for the period adjusted for the one-for-ten reverse split in July 2001. Take the savings out of your mattresses, kids, and call your broker pronto.
EBITDA loss for the quarter was $5.0 million compared to $13.4 million in the third quarter of last year, and improved from the $6.2 million EBITDA loss in the second quarter of 2001. The company also experienced a $7 million loss from impairment of goodwill related to the acquisitions of both iMusic and the Ultimate Band List in 1999, resulting from the weak outlook for revenue generated by these assets. They are now available at 90% off.
"We are continuing to make steady progress in our commitment to realign the Company's cost structure as reflected in the $1.2 million improvement in our EBITDA loss over the second quarter and the $8.4 million improvement over the third quarter of last year," said ARTISTdirect Chairman and CEO Ted Field. "With cash and short-term investments of $60.6 million at September 30th, steady reduction of our losses, and significant progress on building our joint-venture record label, we believe that ARTISTdirect is better positioned today than at any time in its recent past. And will continue to be a great way for me to meet supermodels."
Revenue from e-commerce decreased 52% to $1.6 million from last year's third quarter figure of $3.3 million. Advertising revenue was $420,000, a decrease of 66%. The company experienced continued weakness in the overall advertising market and expects this condition to persist for at least the remainder of 2001. Until then, can they borrow $75 to get DirecTV for another?
