In its second-largest acquisition, Amazon buys the company for $970 million.
Online music retailer Artistdirect’s net revenue for the first quarter fell 25% to $3.4 million. The company continues restructuring to achieve positive cash flow.
Online music retailer Artistdirect Inc. reported today that net revenue for the quarter ended March 31 fell 25% to $3.4 million from the first quarter of 2000. EBITDA loss for the quarter was $8.7 million compared with $8.6 million in the year ago period, and improved from the $13.4 million EBITDA loss in the fourth quarter of 2000, the company said.
"Given the challenging business environment, we are very pleased with our first quarter results as they reflect our aggressive cost reduction initiatives," said Marc Geiger, chairman and CEO. "Our goal is to continue the restructuring of our online operations to become cash flow positive as we move to expand in other areas." As of March 31, cash and short-term investments totaled $79.7 million, or $2.11 per share, and stockholders` equity was $83.9 million, or $2.22 per share.
"While the market may not be differentiating among companies in the Internet music space, we believe that our assets, industry relations, and cash resources provide a unique opportunity to create an independent music entertainment company with an integrated suite of online and offline services," said Keith Yokomoto, president and COO.
In April 2001, the company announced that it had reached a preliminary agreement with veteran entertainment executive Ted Field to join Artistdirect as chairman and CEO and launch a new record label venture. The company says the proposed agreement with Field is “a significant step in creating an integrated online and offline music business consisting of a talent agency, record label, and online music network.”
Revenue from e-commerce in the first quarter increased 18% to $2.4 million from $2 million during the same period in 2000. Advertising revenue for the first quarter was $734,000, a decrease of 59% from the same period in 2000. The company says it expect continued weakness in advertising.