Loudeye Reports Fourth Quarter and Fiscal Year 2000 Results
Loudeye Technologies (www.loudeye.com) has announced its financial results for the fourth quarter and fiscal year ended December 31, 2000. The company reported fourth quarter 2000 revenues of $3.9 million, which marks a 274 percent increase from the fourth quarter of 1999. For the fiscal year 2000, Loudeye reported revenues of $11.5 million.
In addition, Loudeye reported a 15 percent increase in its fourth quarter earnings, $3.9 million as compared to $3.4 million for the third quarter 2000. This increase may have been partly fueled by the launch of the Loudeye Media Subcription Services platform, as well as music licensing deals with Warner Music Group and BMG.
Loudeye also cites its announced agreement to acquire DiscoverMusic as a highlight of the year.
The company still reported an adjusted pro forma net loss for the fourth quarter of approximately $6.6 million, or an adjusted net loss per share of $0.18. However, the company expects to face a $947,000 charge in the fourth quarter related to the company's announced staff reductions and other cost savings initiatives. The charge for the cost savings initiatives will increase the adjusted fourth quarter loss.
An additional special charge, expected to total approximately $700,000, will be recorded in the first quarter of 2001, related primarily to the severance payments associated with the reduction-in-force announced last month. However, the company has previously announced that it believes it will save $3 million a year as a result of reduced labor costs.
Loudeye ended the year with $95 million in cash, cash equivalents, and short-term investments. In addition, the company reduced its quarterly cash burn rate for the second consecutive quarter to approximately $4.5 million, due primarily to changes in working capital and lower capital expenditures.
"Although our market in the near-term has entered into a transition phase, we remain confident about the long-term outlook for our industry, especially in the music segment. We intend to use this period as an opportunity to strengthen our position through continued investment in and deployment of our solutions, while we seek to better serve and increase our customer base.'' said Dave Bullis, president and CEO, Loudeye Technologies, in a statement.