Audible, Inc. Reports 23% Increase in Content and Services Revenues Over Third Quarter 2001; Recently Announced $3.5 Million Equity Infusion Will Bolster Balance Sheet.Business 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)--Feb. 4, 2002 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 any time with audio editions of books, newspapers, magazines, radio programs and original shows, announced results for the quarter ended December December: see month. 31, 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. , February 4 to discuss these results and the company outlook. Details for the teleconference are provided below. Recent highlights include: - An increase in 2001 revenues from content and services of 196% year over year. - Growth to over 123,000 customers, an increase of 142%, in 2001. - Audible announced an equity investment of $3.5 million from Special Situations Funds LLC, which is expected to close no later than February 15, 2002. - AT&T Wireless and Audible announced testing of a jointly developed system for automated audio downloads for wireless networks. - The launch of Audible's own digital audio player, the Audible Otis(TM). - Audible and Cablevision brought spoken audio to Optimum Online customers. - Good Guys and Audible launched in-store promotion. - RealNetworks and Audible announced a content distribution agreement. Content and services revenues increased 23% in the fourth quarter over the prior quarter to $2,467,773. Net loss for the fourth quarter was $5,432,212 or 13% better than the $6,243,090 loss in the third quarter. Net cash used during the quarter was $2.0 million, down 64% from the $5.6 million cash used in the third quarter. Audible's cash and cash equivalents totaled $7.6 million on December 31, 2001 and are expected to be increased by the equity investment of $3.5 million from Special Situations Funds LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control announced on January 28, 2002. "We are pleased to announce our eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval consecutive quarter of more than 20% quarter-over-quarter revenue growth," said Donald Katz Katz , Bernard 1911-2003. German-born British physiologist. He shared a 1970 Nobel Prize for the study of nerve impulse transmission. , 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. , Audible, Inc. "Our consistent movement towards profitability, the advent of new channels of distribution and new ways to increase consumer awareness of our service, and environmental developments that bode bode 1 v. bod·ed, bod·ing, bodes v.tr. 1. To be an omen of: heavy seas that boded trouble for small craft. 2. well for digital media services in general--and strong subscription services in particular--all underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. our confidence in our success as Audible moves into 2002." Recent Highlights: - Audible and SONICblue announced that the Rio Riot Riot Attica city in New York housing state prison; one of the worst prison riots in American history occurred there (1971). [Am. Hist.: NCE, 182] Birmingham riots melee resulting from civil rights demonstrations (1963). [Am. Hist. audio player, with 20GB memory, will be AudibleReady. - PhatNoise will feature Audible.com in the PhatNoise In-Car Digital Audio System. - The number of public libraries outfitted out·fit n. 1. A set of tools or equipment for a specialized purpose: a welder's outfit. See Synonyms at equipment. 2. A set of clothing, often with accessories. 3. with Audible's solution for audiobook borrowing increased by 46 individual branches. - Recent media coverage in the company has appeared in The New York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. Times, 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. , Washington Post, The Washington Post, The Morning daily newspaper published in Washington, D.C., the dominant paper in the U.S. capital and one of the nation's leading newspapers. Established in 1877 as a Democratic Party organ, it changed orientation and ownership several times and faced CBS (Cell Broadcast Service) See cell broadcast. Early Morning Show, CNN.com, Cleveland Plain Dealer, Boston Globe, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Newsday, Newark Star-Ledger, Columbus Dispatch A dispatch or dispatches can refer to:
and Cable, Hollywood Reporter, CNet.com, CNet Radio, Tech TV, Reuters Reuters British cooperative news agency. Founded in 1851 by Paul Julius Reuter, it was initially concerned with commercial news but began to serve a growing newspaper clientele after the London Morning Advertiser subscribed in 1858. , Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. , Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance , CBSMarketwatch.com, Wired.com, PC World, PC Magazine, and more. In other operating results, Audible's customer base for the quarter increased 21% over the third quarter to more than 123,000 customers. This represents a 142% 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 80% of total consumer content revenue - up from 54% during the prior year's quarter. A live webcast of the financial results conference call is available on Monday, February 4 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. About Audible, Inc. Audible(R) (www.audible.com(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
December 31, September 30,
2001 2001
(unaudited) (unaudited)
-------------- -------------
Revenue, net:
Content and services $2,467,773 $2,003,993
Hardware 200,146 140,044
Other 17,194 16,895
-------------- -------------
Total revenue, net 2,685,113 2,160,932
-------------- -------------
Operating expenses:
Cost of content
and services revenue 1,142,536 1,162,221
Cost of hardware revenue 665,033 451,958
Production expenses 1,058,269 1,235,676
Development 470,361 736,251
Sales and marketing 4,036,516 3,436,519
General and administrative 840,953 1,179,426
-------------- -------------
Total operating expenses 8,213,668 8,202,051
-------------- -------------
Loss from operations (5,528,555) (6,041,119)
Other income, net (46,299) (100,525)
-------------- -------------
Loss before state income tax benefit (5,482,256) (5,940,594)
State income tax benefit (326,898) 0
-------------- -------------
Net loss (5,155,358) (5,940,594)
Accrued dividends on redeemable
preferred stock 276,854 302,496
-------------- -------------
Net loss applicable
to common shareholders ($5,432,212) ($6,243,090)
============== =============
Basic and diluted net loss
available to common
shareholders per common share $ (0.20) $ (0.23)
============== =============
Adjusted basic and diluted net loss
available to common
shareholders per common share (1) $ (0.18) $ (0.22)
============== =============
Weighted average shares outstanding 26,870,264 26,885,820
============== =============
(1) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $401,162 and $279,557 for the three
months ended December 31, 2001 and September 30, 2001
respectively, and for non cash compensation related to employee
stock grants and options totaling $73,278 and $74,278 for the
three months ended December 31, 2001 and September 30, 2001,
respectively.
AUDIBLE INC.
CONDENSED STATEMENT OF OPERATIONS
Three months ended Year ended
December 31, December 31,
-------------------------- -------------------------
2001 2000 2001 2000
------------- ------------ ------------ ------------
(unaudited) (unaudited)
Revenue, net:
Content and
services $2,467,773 $1,027,359 $7,461,971 $2,519,345
Hardware 200,146 654,647 1,293,533 1,273,117
Other 17,194 189,129 315,909 756,518
------------- ------------ ------------ ------------
Total revenue,
net 2,685,113 1,871,135 9,071,413 4,548,980
------------- ------------ ------------ ------------
Operating
Expenses:
Cost of content
and services
revenue 1,142,536 1,205,328 4,901,866 3,667,799
Cost of hardware
revenue 665,033 1,058,525 2,858,495 2,571,994
Production
expenses 1,058,269 1,394,947 5,635,977 6,457,638
Development 470,361 792,630 3,322,133 4,444,531
Sales and
marketing 4,036,516 3,936,598 15,187,584 16,052,207
General and
administrative 840,953 1,247,135 4,726,694 5,548,085
------------- ------------ ------------ ------------
Total operating
expenses 8,213,668 9,635,163 36,632,749 38,742,254
------------- ------------ ------------ ------------
Loss from
operations (5,528,555) (7,764,028) (27,561,336) (34,193,274)
Other income, net (46,299) (274,717) (565,565) (1,601,830)
------------- ------------ ------------ ------------
Loss before
state income
tax benefit (5,482,256) (7,489,311) (26,995,771) (32,591,444)
State income tax
benefit (326,898) (316,310) (326,898) (316,310)
------------- ------------ ------------ ------------
Net loss (5,155,358) (7,173,001) (26,668,873) (32,275,134)
Accrued dividends
on redeemable
preferred stock 276,854 0 1,049,516 0
------------- ------------ ------------ ------------
Net loss
applicable
to common
shareholders ($5,432,212) ($7,173,001)($27,718,389)($32,275,134)
============= ============ ============ ============
Basic and diluted
net loss per
common share $ (0.20) $ (0.27) $ (1.03) $ (1.21)
============= ============ ============ ============
Adjusted basic
and diluted net
loss per common
share (1)(2) $ (0.18) $ (0.25) $ (0.95) $ (1.14)
============= ============ ============ ============
Weighted average
shares
outstanding 26,870,264 27,013,239 26,917,513 26,643,589
============= ============ ============ ============
(1) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $401,162 and $344,112 for the three
months ended December 31, 2001 and December 31, 2000,
respectively, and for non cash compensation related to employee
stock grants and options totaling $73,278 and $179,971 for the
three months ended December 31, 2001 and December 31, 2000,
respectively.
(2) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $1,765,439 and $1,243,445 for the
years ended December 31, 2001 and December 31, 2000, respectively,
and for non cash compensation related to employee stock grants and
options totaling $333,375 and $561,740 for the years ended
December 31, 2001 and December 31, 2000, respectively.
AUDIBLE INC.
CONDENSED BALANCE SHEETS
December 31, December 31,
Assets 2001 2000
(unaudited)
--------------- --------------
Current Assets
Cash, cash equivalents, and
short-term investments
including interest receivable $ 7,627,802 $ 16,202,096
Accounts receivable, net of
allowance for doubtful accounts 153,122 193,752
Inventory 449,220 118,170
Royalty advances 56,682 847,396
Prepaid expenses and
other current assets 661,192 464,133
Note receivable due
from stockholder, current 10,000 50,000
--------------- --------------
Total current assets 8,958,018 17,875,547
Property and equipment, net 1,990,670 2,818,792
Note receivable due
from stockholder, non current 35,000 -
Other assets 15,805 37,510
--------------- --------------
Total Assets $10,999,493 $20,731,849
=============== ==============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 1,519,586 $ 1,754,440
Accrued expenses and
compensation 2,345,288 2,397,879
Royalty obligations, current 896,950 772,700
Current maturities of obligations
under capital leases - 47,187
Advances, current 517,813 453,476
Accrued dividends on redeemable
convertible preferred stock 730,612 -
--------------- --------------
Total current liabilities 6,010,249 5,425,682
Deferred cash compensation 93,550 211,065
Royalty obligations, non current 48,500 502,000
Advances, non current 77,780 -
Redeemable convertible
preferred stock: Series A 10,318,902 -
Stockholders' (Deficit) Equity
Common stock 275,470 275,470
Additional paid-in capital 93,728,564 92,196,174
Deferred compensation and services (5,884,267) (11,867,358)
Notes due from stockholders
for common stock (294,456) (391,703)
Treasury stock at cost (179,990) (143,061)
Accumulated deficit (93,194,809) (65,476,420)
--------------- --------------
Total Stockholders'
(Deficit) Equity (5,549,488) 14,593,102
--------------- --------------
Total Liabilities and
Stockholders' Equity $ 10,999,493 $ 20,731,849
=============== ==============
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