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Loudeye Reports First Quarter 2000 Results
- Record first quarter revenues of $1,649,000
- Strong sequential quarterly revenue growth of 57%
- Record setting encoded audio files and video minutes milestones
- Launch of flexible Digital Media Applications Platform
- New distribution partnerships and technology alliances announced
- Production facilities increase and geographic expansion
SEATTLE, April 24 /PRNewswire/ -- Loudeye Technologies, Inc. (Nasdaq: LOUD), originally encoding.com, a leading provider of digital media solutions that unleash the power of audio and video on the Internet, announced today financial results for the quarter ended March 31, 2000.
Revenues for the quarter increased to $1,649,000, which represents a 57% sequential growth over revenues of $1,048,000 for the quarter ended December 31, 1999, and a 448% increase over revenues of $301,000 for the same quarter of the prior year. The net loss for the quarter ended March 31, 2000 was $5,680,000, before non-cash charges related to the amortization of goodwill and other intangibles and stock based compensation charges for the period, resulting in a pro forma as adjusted net loss per share of $0.19. The total net loss for the quarter ended March 31, 2000 was $10,522,000 including all non-cash charges related to the amortization of goodwill and other intangibles and stock based compensation charges for the period, resulting in a pro forma net loss per share of $0.35. The net loss in the prior year period was $1,131,000, or $0.08 per share. Loudeye ended the quarter with total cash and short-term investments of $108.0 million.
"We are very excited about our strong performance in our first quarter as a public company. We are still in the early stages of the adoption of rich, digital media on the web. However, our strategy to be the leading digital media infrastructure provider to enable customers to move their media content to the web showed significant results during the quarter. We demonstrated growth across all of our product lines, announced important strategic distribution and technology partnerships and launched our applications engine. Overall, we believe we are well positioned to take advantage of the significant opportunities for digital media on the web," said Martin Tobias, Chairman and CEO of Loudeye.
Loudeye has two main business lines: Digital Media Services, which includes consulting services, and Digital Media Applications. Specific highlights for the first quarter ended March 31, 2000 included the following:
Digital Media Services
-- Digital Media Services revenues for the quarter ended March 31, 2000 grew to $1,551,000, representing a 48% sequential growth rate from the quarter ended December 31, 1999, and a 415% growth rate from the same prior year period. Digital Media Services revenue consists primarily of revenues from encoding services and consulting services.
-- Key Digital Media Services customers in the first quarter included Microsoft, Disney, Sony, EMI, CNN Interactive, AtomFilms, CinemaNow, EMusic, Energy Films, Eveo, and iCast, a CMGi company.
-- As of the end of the quarter, Loudeye's cumulative number of audio files encoded reached approximately 2,300,000, and its cumulative number of video minutes encoded reached approximately 590,000.
-- In the quarter, Loudeye significantly increased its production facilities, adding 30 server CPUs, 25 terabytes of RAID storage and 110 terabytes of tape storage.
-- Loudeye continued to upgrade the suite of technologies offered as part of its Digital Media Services, through technology alliances with Excalibur Technologies in robust indexing and Reciprocal in digital rights management for downloadable content.
Digital Media Applications
-- Loudeye launched and began to recognize revenue from its Digital Media Applications Platform, which is the only scaleable and extensible engine for publishing, encoding, hosting, and managing media-enhanced content and applications on the Internet.
-- Digital Media Applications revenues for the quarter were $98,000, primarily comprised of fees for delivered applications and implementation fees. Customers in the quarter include CinemaNow and iCast.
-- Loudeye also announced the licensing of its flexible Digital Media Applications Platform to Mitsui Comtek of Japan, for specific tailored applications in the Asian markets.
Company Highlights
-- Loudeye successfully completed its initial public offering of 4.5 million shares of common stock, raising approximately $77.0 million of net proceeds in the offering, including net proceeds of approximately $10 million derived from the exercise of the over-allotment option in April 2000.
-- Akamai Technologies invested $5.0 million in the Company's common stock in conjunction with Loudeye's initial public offering, and entered into a strategic distribution partnership with Loudeye.
-- Loudeye announced its expansion into Europe with the opening of a sales office in London.
-- Loudeye achieved significant growth in headcount in all functional areas, ending the quarter with approximately 300 employees, including 60 in research and development, 53 in sales and marketing and 118 in production. |
