Liquid Audio Reports 4Q99 Results
Liquid Audio (http://www.liquidaudio.com) announced financial results for thefourth quarter and fiscal year ended December 31, 1999.
During the quarter,on December 14, the company completed a follow-on public offering of 3 millionshares of common stock at an offering price of $33.63 per share. Thissignificantly improved the company's cash position from $70.5 million atSeptember 30 to $157.8 million at December 31. Liquid Audio also signedbusiness development agreements with Liquid Audio Japan and Super Stage, Inc.,under which the company will receive minimum cash payments of $10.0 million inthe aggregate over the next two years.
Total net revenues for the fourth quarter of 1999 were $1.3 million,exclusive of a $1.0-million cash payment received pursuant to the Liquid AudioJapan agreement, which was recorded as deferred revenue on the balance sheetat December 31. This compared with $1.8 million for the third quarter of 1999and with $1.1 million for the fourth quarter of 1998.
Fourth-quarter 1999 net loss was $8.2 million, including a strategicmarketing-equity instruments expense of $940,000 for common stock and warrantsissued to strategic partners and an employee stock compensation expense of$250,000. This compared sequentially with a net loss of $5.8 million,including strategic marketing and stock compensation expenses, for the thirdquarter.
"Continued strong fundamentals and the growth of our global musicdistribution network characterized the fourth quarter of 1999," saidGerry Kearby, president and chief executive officer of Liquid Audio. "Inaddition to penetrating international markets, we made further inroads withthe major record labels and expanded our retail distribution channel. We alsoextended our open platform to support leading portable audio players and otherInternet music delivery systems. These milestones reinforced our position asthe emerging de facto standard for global music distribution, helping artistsand record labels sell music through both online and 'click-and-mortar'retailers."