Loudeye Cuts Jobs, Announces Preliminary Q4 Revenue
In an effort to cut costs, Loudeye (www.loudeye.com) announced that it was reducing staff by about 18 percent, bringing the current employee total to 240. These actions are expected to result in cost savings totaling approximately $3 million a year.
"Although we believe that opportunities for our digital media solutions remain attractive over the long term, our industry as a whole continues to work through early market challenges around copyright, business model and funding concerns," said Dave Bullis, president and CEO. "In the near term we see the largest opportunity in servicing the demand for digital music on the Web and we intend to increase our efforts in this segment of the business."
The company also announced preliminary fourth quarter 2000 revenue of approximately $3.9 million, which is slightly below consensus estimates. It will report its actual results for the quarter and fiscal year on February 14, 2001.
In association with these actions, Loudeye will be recording special charges in the fourth quarter of 2000, totaling approximately $900,000, and in the first quarter of 2001, in a range of approximately $600,000 to $700,000.
Loudeye said it will continue to support its Vidipax media restoration subsidiary in New York, in addition to services: Loudeye Media Syndicator, Loudeye Media Subscription Services offering.