Audible, Inc. Reports 20% Increase in Content and Services Revenues Over Second Quarter 2001.Business/Technology Editors WAYNE Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. , N.J.--(BUSINESS WIRE)--Nov. 2, 2001 Analyst Estimates Surpassed; Management Expects To Reach Cash Flow Positive With Existing Cash Audible A protected MP3 file format from the Audible.com audio download service. See Audible.com. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADBL ADBL Agricultural Development Bank Limited (Nepal) ), the leading provider of downloadable spoken word audio that informs and entertains anywhere and anytime with audio editions of books, newspapers, magazines, radio programs and original shows, announced results for the quarter ended September September: see month. 30, 2001. Audible will hold an investor teleconference at 5:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT Monday Monday: see week. , November November: see month. 5 to discuss these results and the company outlook. Details for the teleconference are provided below. Highlights from the third quarter 2001 include: - A decrease in the net loss over the second quarter 2001 by $2.2 million or 27%. - An increase in revenues from content and services of 190% year over year. - The acquisition of Audible's 100,000th paying customer. - The successful execution of a streamlined operating plan designed to achieve positive cash flow by end of 2002 without additional financing. Content and services revenues increased 20% in the third quarter over the prior quarter to $2,003,993. Net loss for the third quarter was $5,940,594, or 27% better than the $8,097,999 loss in the second quarter. Net cash used during the quarter was $5.6 million. The company expects that cash burn will diminish during the fourth quarter to approximately $3.7 million. Audible's cash and cash equivalents totaled $9.6 million on September 30, 2001. In other operating results, Audible's customer base for the quarter increased 17% over the second quarter to more than 102,000 customers. This represents a 191% increase over the same period last year. Recurrent recurrent /re·cur·rent/ (re-kur´ent) [L. recurrens returning] 1. running back, or toward the source. 2. returning after remissions. re·cur·rent adj. 1. , "locked in" revenue accounted for just under 80% of total customer content revenue - up from 44% during the prior year's quarter. "Management is particularly proud of this quarter because the timeframe included operational adversity ad·ver·si·ty n. pl. ad·ver·si·ties 1. A state of hardship or affliction; misfortune. 2. A calamitous event. due to the events of September 11," observed Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Katz Katz , Bernard 1911-2003. German-born British physiologist. He shared a 1970 Nobel Prize for the study of nerve impulse transmission. , Audible's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Though our website was out of commission for 8 days and so compromised that we did not acquire any new customers for 17 days of the quarter, we have achieved significant growth once again. Our customers returned and business bounced back immediately after we were live again. Meanwhile, the quality of our customer growth - the percentage signing up for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. membership plans and the very high retention numbers we see - are developments that add assurance to our projections for turning cash-flow positive next year." Other recent highlights include: - Audible's continued success with its AudibleReady(TM) partnership with Microsoft's Pocket PC product line through the support of the new Windows Powered Pocket PC 2002 software. - AudiblePlayer(TM) for the Pocket PC was voted the best audio player by Pocket PC Magazine. USA Today USA Today National U.S. daily general-interest newspaper, the first of its kind. Launched in 1982 by Allen Neuharth, head of the Gannett newspaper chain, it reached a circulation of one million within a year and surpassed two million in the 1990s. , Business Week, PC Magazine, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. Post, Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). , Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. Journal-Constitution, Smart Computing computing - computer and Computer Buyer's Guide and Handbook
This article is about reference works. For the subnotebook computer, see .
A live webcast of the financial results conference call is available on Monday, November 5 at 5:00 p.m. EDT (2:00 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ). Please click on www.audible.com/ir for online access to the call. In related news, Audible, Inc. today announced that it has received a Nasdaq Staff Determination letter on October October: see month. 26, 2001 indicating that the company has failed to comply with the minimum Net Tangible Assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". requirement for continued listing, as set forth in Marketplace Rule 4450(a)(3). Accordingly, the company's securities are subject to de-listing from the Nasdaq National Market. Audible has requested a hearing before the Nasdaq Listing Qualifications Panel to review the Staff Determination. The request for a hearing will defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. the de-listing of Audible's common stock pending a decision by the panel. There can be no assurance the panel will grant the company's request for continued listing. If the company's common stock is de-listed from the Nasdaq National Market, the company expects that its common stock will continue to be listed under the symbol "ADBL" and would trade on NASD's OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. . Management sees no negative impact of the potential of moving to OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). on operations or the achievement of growth and profitability. About Audible, Inc. Audible(R) (www.audible.com A Web site that offers a library of audio material for downloading and listening on a computer or an Audible-enabled digital music player. Either Audible's own software or iTunes is required to manage the files. (R)) is the Internet's largest, most diverse provider of premium spoken audio services for content download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. or playback Playback could mean:
tr.v. im·print·ed, im·print·ing, im·prints 1. To produce (a mark or pattern) on a surface by pressure. 2. To produce a mark on (a surface) by pressure. 3. to produce spoken word content specifically suited for digital distribution, Random House Audible. Among the Company's key business partners are Card Access Inc., Casio Inc., Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. , Handspring hand·spring n. A gymnastic feat in which the body is flipped completely forward or backward from an upright position, landing first on the hands and then on the feet. , Hewlett-Packard Company, Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, , Royal Philips Electronics, RealNetworks, Inc., SONICblue Incorporated's Rio Audio Group, Sony Electronics Sony Electronics Inc., headquartered in San Diego, Calif., is the largest component of Sony Corporation of America, the U.S. holding company for Sony's U.S.-based electronics and entertainment businesses. , Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. and VoiceAge Corp. Audible and www.audible.com are registered trademarks of Audible, Inc.; AudibleReady is a trademark of Audible, Inc. and all are part of the family of Audible, Inc. trademarks. All other marks are property of their respective companies. This press release contains information that is not historical fact and may be deemed to contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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.
AUDIBLE INC.
COMPARATIVE STATEMENT OF OPERATIONS
Three months ended
-----------------------
Sept. 30, June 30,
-----------------------
2001 2001
----------- -----------
(unaudited) (unaudited)
Revenue, net:
Content and services $2,003,993 $1,669,593
Hardware 140,044 299,440
Other 16,895 73,758
----------- -----------
Total revenue, net 2,160,932 2,042,791
----------- -----------
Operating expenses:
Cost of content and services revenue 1,162,221 1,292,914
Cost of hardware revenue 451,958 778,514
Production expenses 1,235,676 1,683,982
Development 736,251 1,236,047
Sales and marketing 3,436,519 3,965,927
General and administrative 1,179,426 1,366,526
----------- -----------
Total operating expenses 8,202,051 10,323,910
----------- -----------
Loss from operations (6,041,119) (8,281,119)
Other income, net (100,525) (183,120)
----------- -----------
Net loss (5,940,594) (8,097,999)
Accrued dividends on redeemable
preferred stock 302,496 299,208
----------- -----------
Net loss applicable to common shareholders ($6,243,090)($8,397,207)
=========== ===========
Basic and diluted net loss available to
common shareholders per common share $ (0.23) $ (0.31)
=========== ===========
Adjusted basic and diluted net loss available
to common shareholders per common share (1) $ (0.22) $ (0.29)
=========== ===========
Weighted average shares outstanding 26,885,820 26,919,837
=========== ===========
(1) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $279,557 and $386,464 for the three
months ended September 30, 2001 and June 30, 2001 respectively,
and for non cash compensation related to employee stock grants and
options totaling $74,278 and $93,469 for the three months ended
September 30, 2001 and June 30, 2001, respectively.
AUDIBLE INC.
CONDENSED STATEMENT OF OPERATIONS
Three months ended Nine months ended
September 30, September 30,
------------ ------------ ------------- -------------
2001 2000 2001 2000
------------ ------------ ------------- -------------
(unaudited) (unaudited)
Revenue, net:
Content and
services $2,003,993 $690,040 $4,994,198 $1,491,987
Hardware 140,044 234,307 1,093,387 618,469
Other 16,895 189,130 298,715 567,388
------------ ------------ ------------- -------------
Total revenue,
net 2,160,932 1,113,477 6,386,300 2,677,844
------------ ------------ ------------- -------------
Operating
Expenses:
Cost of content
and services
revenue 1,162,221 1,158,684 3,759,330 2,462,471
Cost of hardware
revenue 451,958 468,535 2,193,462 1,513,469
Production
expenses 1,235,676 1,635,045 4,577,708 5,062,691
Development 736,251 1,306,371 2,851,772 3,651,901
Sales and
marketing 3,436,519 3,370,018 11,151,068 12,115,608
General and
administrative 1,179,426 1,379,826 3,885,741 4,300,949
------------ ------------ ------------- -------------
Total operating
expenses 8,202,051 9,318,479 28,419,081 29,107,089
------------ ------------ ------------- -------------
Loss from
operations (6,041,119) (8,205,002) (22,032,781) (26,429,245)
Other income, net (100,525) (354,979) (519,266) (1,327,112)
------------ ------------ ------------- -------------
Net loss (5,940,594) (7,850,023) (21,513,515) (25,102,133)
Accrued dividends
on redeemable
preferred stock 302,496 0 772,662 0
------------ ------------ ------------- -------------
Net loss
applicable
to common
shareholders ($6,243,090) ($7,850,023) ($22,286,177) ($25,102,133)
============ ============ ============= =============
Basic and diluted
net loss per
common share $ (0.23) $ (0.29) $ (0.83) $ (0.95)
============ ============ ============= =============
Adjusted basic
and diluted net
loss per common
share (1)(2) $ (0.22) $ (0.28) $ (0.77) $ (0.90)
============ ============ ============= =============
Weighted average
shares
outstanding 26,885,820 27,014,489 26,933,436 26,519,323
============ ============ ============= =============
(1) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $279,557 and $236,741 for the three
months ended September 30, 2001 and September 30, 2000,
respectively, and for non cash compensation related to employee
stock grants and options totaling $74,278 and $139,134 for the
three months ended September 30, 2001 and September 30, 2000,
respectively.
(2) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $1,364,277 and $899,334 for the nine
months ended September 30, 2001 and September 30, 2000,
respectively, and for non cash compensation related to employee
stock grants and options totaling $260,097 and $381,769 for the
nine months ended September 30, 2001 and September 30, 2000,
respectively.
AUDIBLE INC.
CONDENSED BALANCE SHEETS
September 30, December 31,
Assets 2001 2000
---------------- ----------------
(unaudited)
Current Assets
Cash, cash equivalents,
and short-term investments
including interest receivable $ 9,649,355 $ 16,202,096
Accounts receivable, net of
allowance for doubtful
accounts 364,045 193,752
Inventory 338,287 118,170
Royalty advances 185,641 847,396
Prepaid expenses and other
current assets 363,894 464,133
Notes receivable due from
stockholders, current 10,000 50,000
---------------- ----------------
Total current assets 10,911,222 17,875,547
Property and equipment, net 2,441,398 2,818,792
Notes receivable due from
stockholders, non current 35,000 -
Other assets 300,853 37,510
---------------- ----------------
Total Assets $ 13,688,473 $ 20,731,849
================ ================
Liabilities and Stockholders'
Equity
Current Liabilities
Accounts payable $ 1,317,776 $ 1,754,440
Accrued expenses and
compensation 2,016,129 2,397,879
Royalty obligations, current 886,700 772,700
Current maturities of
obligations under capital
leases - 47,187
Advances, current 282,287 453,476
Accrued dividends on redeemable
convertible preferred stock 772,662 -
---------------- ----------------
Total current liabilities 5,275,554 5,425,682
Deferred cash compensation 97,525 211,065
Royalty obligations,
non current 67,750 502,000
Advances, non current 92,363 -
Redeemable convertible
preferred stock: Series A 10,000,000 -
Stockholders' Equity
Common stock 275,470 275,470
Additional paid-in capital 93,327,402 92,196,174
Deferred compensation
and services (7,207,545) (11,867,358)
Notes due from stockholders
for common stock (297,459) (391,703)
Treasury stock at cost (179,990) (143,061)
Accumulated deficit (87,762,597) (65,476,420)
---------------- ----------------
Total Stockholders' Equity (1,844,719) 14,593,102
---------------- ----------------
Total Liabilities and
Stockholders' Equity $ 13,688,473 $ 20,731,849
================ ================
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