By Robert Menta- 2/01/01
With all the dot-coms floundering, nobody expected this news. MP3.com surprised Wall Street by reporting a fourth quarter loss far less than forecast.
Wall Street predicted a $10.1 million loss for the company or 17 cents per diluted share. What they got was a third of that in a $3.1 million loss or 5 cents a share. Revenues increased to $22 million from $15.3 million the same quarter last year.
All this was accomplished at a time when advertising revenues are supposed to be down for the Internet. MP3.com earns most of its revenues through ads.
"The online advertising market follows the same laws as the offline market," said Michael Robertson MP3.com's Chairman. "Where there are large audiences there are advertisers, and the net music audience gets larger every day."
Even though the company fought through a year of very expensive litigation against the music industry, that case was finally settled. The settlement took a significant amount of the company's cash reserves but with over $300 million in cash MP3.com was able to absorb it and move on. Now they are looking at a break-even point by as early as next quarter. Robertson expects total revenues to grow 25 percent to 35 percent in 2001.
The companies stock was up in after hours, trading from $4.48 to around $6.12.
Copyright MP3 Newswire 2001
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