From the land of Maycom...
Liquid Audio Revenue Gains Tied to Asian Growth
April 18, 2000
Liquid Audio, Inc., which develops and markets digital music distribution software and services attractive to at least some of the major labels, has reported increased revenues for its fiscal first quarter, which the company attributed largely to its success in the Asian market.
The company's total net revenues for the quarter were $3.0 million, up nearly six-fold from $531,000 for the same period of fiscal 1999.
Much of Liquid's revenue for the quarter originated from Asia, the company said, with business development revenues of $2.4 million from that region. Liquid operates a joint venture in Korea through which the company offers record labels digital music distribution services. The venture also provides digital delivery software and services for in-stores kiosks from which consumers may download music.
The company's shares closed trading on the Nasdaq Market yesterday at $12.31, up from Friday's close of $12.00.
The company has relationships with some of the Big Five music companies that could position it as a major business-to-business provider for downloadable music.
BMG Entertainment has announced a downloadable music strategy that includes Liquid Audio as a key technology provider [see related items]. The major label group has tapped Liquid to tie together the technologies of several companies for its digital delivery strategy.
Liquid also has close ties with EMI Recorded Music, for whom the technology company is encoding digital music. Liquid also serves as a back-end provider for certain Warner Music Group promotional downloads.
While Liquid's revenues rose for its most recent quarter, the company reported a net loss of $6.5 million for the first quarter, up from $4.1 million for the corresponding quarter last year.
For the quarter, Liquid's research and development costs rose $0.9 million to $4.9 million, and represented 45% of total operating expenses, according to the company.
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