I did not realize Audible released earnings today. This is an income and balance sheet we all strive for:
Audible Announces Fourth Quarter and Year End Results
WAYNE, N.J.--(BUSINESS WIRE)--Jan. 31, 2000--
IN NEW STRATEGIC ALLIANCE, AUDIBLE.COM(tm) WILL BECOME
AMAZON.COM'S EXCLUSIVE PROVIDER OF SPOKEN-WORD PROGRAMMING FOR
DOWNLOADING OR STREAMING VIA THE WEB
Audible, Inc. (Nasdaq: ADBL), the leading provider of Internet-
delivered spoken audio (www.audible.com(tm)) for PC-based listening or
mobile playback on AudibleReady(tm) devices, today announced results
for the fourth quarter and year ended December 31, 1999.
Amazon.com Strategic Alliance
Separately today, Amazon.com (Nasdaq: AMZN) and Audible announced
a strategic alliance that will allow customers to access audible.com
content and services through Amazon.com. audible.com(tm) will be
Amazon.com's exclusive provider of spoken word audio programming for
downloading or streaming via the Web and Amazon.com will purchase a 5%
stake in Audible at market prices.
This alliance is expected to result in increased revenues in the
second half of 2000 and will also require Audible to make investments
in marketing and infrastructure. The agreement is expected to become
accretive to per share results during the second half of 2001.
"Amazon.com provides the ideal platform for our audio service,"
said Donald Katz, Chairman and Founder of Audible, Inc. "Our business
synergy with Amazon.com's book and consumer electronics stores, and
their standards for customer excellence, will strengthen our
leadership position in the online, digital spoken word category."
Fourth-Quarter Results
Total revenue for the three months ended December 31, 1999
increased 338% to $420,263 from $95,950 reported for the three months
ended December 31, 1998. Content and services revenue for the period
was $196,797, an increase of 364% from $42,374 reported in last year's
fourth quarter and a sequential increase of 50% over the third quarter
of 1999. Net loss for the fourth quarter was $5,369,745, or $0.21 per
basic and diluted common share, compared with a net loss of
$2,947,190, or $0.40 per basic and diluted common share in the
comparable period of 1998.
"The results of the quarter represent both the financial and
operational strengths of Audible's business," commented Donald Katz,
Chairman and Founder of Audible. "Continued consumer acceptance of our
services is reflected in both better than expected top line revenue
and increased customer count. Our overall customer count grew
sequentially by 54% from the third quarter of 1999 to more than 13,300
in the fourth quarter. In addition, we have continued to build upon
and diversify the Audible library, increasing the content available to
our customers to more than 20,000 hours, representing more than 10,000
titles."
"In the fourth quarter Audible made significant strides in terms
of reaching branding agreements with the consumer electronics
manufacturers of portable digital audio devices, securing quality
content that will be featured at audible.com(tm), and making all of
our content available through additional delivery platforms," Katz
continued. "We're confident that the pending launch of the
AudibleReady(tm) Diamond Rio 500 will illustrate the effectiveness of
our strategic relationships, and we look forward to extending this
success to the many other AudibleReadyTM digital audio players as they
become available this year."
Katz concluded, "At the Consumer Electronics Show in Las Vegas
earlier this month, Audible announced that a new generation of
AudibleReady(tm) devices will be manufactured by Diamond Multimedia, a
subsidiary of S3 Inc., Panasonic, Philips Electronics, Toshiba
Corporation, and Sanyo. In addition, award-winning actor and comedian
Robin Williams appeared at CES to announce that he will launch
RobinWilliams@audible.com(tm), a weekly program of comedy and
commentary that will be exclusively available from audible.com
beginning in April 2000. We are introducing a broad range of audio
content and increasing the number of devices capable of playing this
content, and are optimizing branding opportunities afforded by these
important agreements. Combined with other initiatives in the past
quarter, these announcements set the stage for continued realization
of our strategic goals."
Year-End 1999 Results
Total revenue for the year ended December 31, 1999 increased 363%
to $1,742,605 from $376,090 reported for the year ended December 31,
1998. Net loss for the year ended December 31, 1999 was $13,476,311,
or $0.85 per basic and diluted common share, compared with a net loss
of $8,138,074, or $1.15 per basic and diluted common share, for the
year ended December 31, 1998.
Recent highlights:
-- Audible and Robin Williams announced the forthcoming launch of
RobinWilliams@audible.com(tm), an exclusive weekly program starting in
April, 2000, that will be a combination of humor, commentary, insight
and surprises.
-- Audible announced a collection of marketing and service integration
agreements pertaining to AudibleReady(tm) devices to be manufactured
by Diamond Multimedia, a subsidiary, of S3 Inc., Panasonic (Matsushita
Electric Industrial Co., Ltd.), Philips Electronics, Sanyo
(SEC, Ltd.), and Toshiba Corporation.
-- Audible and Microsoft Corporation announced that the Audible
premium audio service will be integrated into the new Microsoft(r)
Reader eBook platform for Pocket PCs. Microsoft Chairman Bill Gates
demonstrated the integration of Audible's playback capabilities with
Microsoft Reader during his keynote address at the Consumer
Electronics Show on January 5, 2000 in Las Vegas.
-- On December 7, Audible announced support for the Microsoft(r)
Windows Media Player, allowing the more than 50 million users of this
platform access to premium spoken audio content available at
audible.com(tm).
-- In November, the Company introduced a new high performance Web site
powered by BroadVision. The advanced site provides enhanced ease of
use, personalization, improved access to content selections and
marketing features.
-- Several key management hires were recently announced. These
appointments include Dan Scheffey to Vice President of Communications,
John Barth to Senior Director of Original Programming, Warren Cook to
Director of Content Acquisition & Strategic Partnerships, Kelly Frey
to Director of Business and Legal Affairs, Sal Giangrasso to Senior
Director & Managing Editor, and David Simpson to Director of Business
Development.
-- Audible recently announced several agreements regarding the
distribution of content through the audible.com(tm) Web site. These
include agreements to feature Seattle public radio's weekly news
satire program Rewind, as well as content from the Los Angeles Times,
Science News and Technology Review. In addition, through an alliance
with National Public Radio(r), Audible will feature NPR's standard-
setting programming and develop original programming utilizing the
creative resources of the public radio production community.
About Audible
Audible is the Internet's largest, most diverse provider of
premium spoken-audio services for content download or playback on
personal computers and AudibleReady(tm) mobile digital audio devices.
Audible allows customers to take advantage of their commute, travel
and desktop computer time by delivering premium entertainment and
information audio while their eyes are busy but their minds are free.
Audible's content partners include leading audio book publishers,
broadcasters, magazine and newspaper publishers, business information
providers, and educational and cultural institutions. Visitors to
www.audible.com can browse, sample, purchase and subscribe to more
than 20,000 hours of audio programs. Among the Company's key business
partners are Casio Inc., Compaq Computer Corporation, S3/Diamond
Multimedia Systems Inc., Microsoft Corporation, Royal Philips
Electronics, and RealNetworks, Inc.
AudibleReady and audible.com are trademarks of Audible, Inc.
Other product and company names herein may be trademarks of their
respective owners.
This press release contains information that is not historical
fact and may be deemed to contain forward-looking statements. Actual
results may differ materially from those anticipated in any
forward-looking statements as a result of certain risks and
uncertainties, including, without limitation, Audible's limited
operating history, history of losses, uncertain market for its
services, and its inability to license or produce compelling audio
content and other risks and uncertainties detailed in the Company's
Securities and Exchange Commission filings.
- Tables to follow -
-0-
*T
AUDIBLE INC.
CONDENSED STATEMENT OF OPERATIONS
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
(unaudited)
Revenue:
Content and services $196,797 $42,374 $477,675 $132,357
Hardware 34,335 53,576 313,627 243,733
Other 189,131 0 951,303 0
Total Revenue 420,263 95,950 1,742,605 376,090
Operating Expenses:
Cost of content and
services
revenue 338,079 122,063 812,062 372,114
Cost of hardware
revenue 36,192 28,511 307,395 555,575
Write-down related
to hardware
business 0 952,389 0 952,389
Production
expenses 1,265,149 446,019 3,397,297 1,639,420
Research and
development 911,260 495,783 2,680,108 1,641,458
Sales and marketing 2,835,717 570,110 6,108,988 1,453,196
General and
administrative 966,719 388,646 3,015,227 1,838,365
Total operating
expenses: $6,353,116 $3,003,521 $16,321,077$8,452,517
Loss from
operations: ($5,932,853) ($2,907,571)($14,578,472)($8,076,427)
Other (income)
expense: (563,108) 39,619 (1,102,161) 61,647
Net Loss: ($5,369,745) ($2,947,190)($13,476,311)($8,138,074)
Basic and
diluted net
loss
Per common share $(0.21) $(0.40) $(0.85) $(1.15)
Adjusted basic and
diluted net loss
Per common share(1) $(0.18) $(0.75)
Weighted average
shares
outstanding 25,563,462 7,396,580 15,890,528 7,096,945
(1) Adjusted to exclude non-cash amortization relating to
warrants issued for services totaling $731,663 for the three months
ended December 31, 1999 and $1,349,728 for the year ended December 31,
1999 and employee stock grants totalling $54,435 for the three months
ended December 31, 1999 and $181,447 for the year ended December 31,
1999.
AUDIBLE, INC.
CONDENSED BALANCE SHEET
December 31, December 31,
Assets 1999 1998
Current Assets:
Cash and cash
equivalents $36,880,058 $10,526,299
Accounts receivable, net of
allowance for doubtful
accounts 50,890 8,516
Advanced royalty
payments, net 652,342 228,402
Prepaid expenses 672,526 102,916
Notes Receivable due from
stockholder-current 150,000 -
Inventory - 129,535
Total Current Assets 38,405,816 10,995,668
Property and
equipment, net 1,423,003 397,837
Other assets 96,980 206,153
Total assets $39,925,799 $11,599,658
Liabilities and
Stockholders' Deficit
Current Liabilities:
Accounts payable $1,513,492 $482,971
Accrued expenses
and compensation 2,098,176 471,753
Current maturities of
obligations under
capital leases 263,320 471,224
Advances, Current 934,765 491,304
Total Current Liabilities 4,809,753 1,917,252
Deferred compensation 177,762 167,318
Advances, non current 252,174 1,008,696
Other liabilities 60,500
Obligations under capital
leases, net of current
maturities 47,187 310,507
Redeemable convertible
preferred stock
(non cumulative) - 27,724,654
Stockholders' deficit:
Common Stock 251,772 73,944
Additional paid-in
capital 68,101,638 1,162,420
Treasury Stock 5,324
Notes due from stockholders
for common stock (579,025) (1,040,158)
Accumulated deficit (33,201,286) (19,724,975)
Total Stockholders'
Deficit 34,578,423 (19,528,769)
Total Liabilities and
Stockholders' Deficit $39,925,799 $11,599,658
CONTACT:
Audible, Inc.
Andrew Kaplan
Chief Financial Officer
973-890-4070
OR
Morgen-Walke Associates
Carolyn Capaccio/Katherine Mittelbusher
Press: Evan Goetz (evan@morgenwalke.com)
212-850-5600 |
