(sa)Maybe CDnow should find a more effective way to advertise?
February 3, 2000 5:31pm
CDNow misses Street estimates in fourth quarter
zdii.com
By Larry Barrett ZDII
Online music retailer CDNow Inc. (Nasdaq: CDNW) missed analysts'
estimates in its fourth quarter Thursday, losing $25.7 million,
or 85 cents a share, on [GROSS]sales of $53.1 million.
First Call consensus expected it to lose only 80 cents
a share in the quarter.
The $53.1 million in sales marks a 154 percent improvement
from the year-ago quarter when it lost $12.9 million, or
73 cents a share, on sales of $20.9 million.
For the year, it lost $119.2 million, or $4.32 a share, on
[GROSS] sales of $147.2 million compared to a loss of $43.9 million,
or $2.79 a share, on sales of $56.4 million in fiscal 1998.
"CDNow wrapped up 1999 with, by many measures, our strongest
quarter ever," said CEO Jason Olim in a prepared release.
"Revenues grew substantially both year-over-year and sequentially."
While CDNow's sales did jump 154 percent from the year-ago period,
it still fell 47 percent shy of the total music sales Amazon.com Inc.
(Nasdaq: AMZN) recorded in this quarter. Amazon.com did $78 million
in music [GROSS] sales, up 136 percent from the year-ago period...
....CDNow averaged 821,000 daily page views in December, up 178 percent
from the year-ago period. Repeat customers accounted for 60 percent
of its total sales, compared to 56 percent a year ago......
....Two of the three analysts tracking the stock maintain
either a "buy" or "strong buy" recommendation.
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Net sales 53,107,057 20,890,801 147,189,405 56,394,606
Cost of sales
(43,458,466) (16,700,766) (118,037,621) (45,250,328)
Gross profit
Net Revenues 9,648,591 4,190,035 29,151,784 11,144,278
Sales
and marketing (25,916,821) (13,278,636) (88,103,790) (44,572,304)
Net loss
(34,275,178) (12,944,604) (119,229,025) (43,768,921)
Weighted average
number of shares
outstanding
30,268,783 17,641,642 27,618,917 15,712,857
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