Audible, Inc. Reports 24% Consumer Content Revenue Increase over Second Quarter 2002; Consumer Content Revenue Increased 115% Over Third Quarter 2001.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)--Oct. 30, 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 September September: see month. 30, 2002. Audible(R) 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 Wednesday Wednesday: see week. , October October: see month. 30th to discuss these results and the company outlook. Details for the teleconference are provided below. Highlights include: -- Growth to over 182,000 customers, an increase of 79% year over year. -- Audible.com(R) and Apple integrated the iPod and iTunes with Audible's Internet audio service. -- The Audible Internet audio service has been integrated into Palm's new Tungsten T handheld and will also be offered to users of future Palm handhelds. -- The new MSN 8 gives users free trial offers for Audible's downloadable audiobooks. -- Audible.com demonstrated downloads of spoken audio to Windows powered Smartphone. -- Audible.com and Cox High Speed Internet entered into a comarketing partnership. -- Audible.com and Toshiba Cable Modems entered into a comarketing partnership. -- Audible.com and Mac Publishing entered into a wide-ranging distribution and programming partnership. -- Audible.com named one of the "Best of Today's Web" by PC World magazine. -- Kenwood's Music Keg, powered by PhatNoise, will ship compatible with Audible's Internet audio service. -- Deloitte and Touche named Audible one of New Jersey's fastest growing technology companies in their "Fast 50" program, noting the company's 5,879% growth record over the past five years. "In an environment where significant economic growth is a challenge to many companies, Audible has once again exceeded its consumer content growth goals," 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. , 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. "This performance comes in advance of the positive effect of many of the important co-marketing Co-marketing is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with Co-promotion See also Marketing co-operation and service bundling relationships the company has struck with leading partners in the broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , CD-burning, audio device, and retail sectors. "Perhaps most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , our core consumer is no longer drawn from the ranks of early adopters," continued Katz. "The environmental acceptance of concepts such as downloading downloading - download audio files and burning your own CDs is proving to be a tremendous catalyst as we move closer to profitability. With increased awareness of our audio service, we believe broad customer acceptance of the Audible audio service will emanate em·a·nate intr. & tr.v. em·a·nat·ed, em·a·nat·ing, em·a·nates To come or send forth, as from a source: light that emanated from a lamp; a stove that emanated a steady heat. from the ranks of any and all consumers who want to make better use of their time." Consumer content revenue increased 24% in the third quarter over the prior quarter to $3,002,039. Net loss per share for the third quarter was $0.16. Net cash used during the quarter was $3.1 million. Audible's cash and cash equivalents totaled $3.7 million on September 30, 2002. In related news, Audible, Inc. announced today that it has received a Nasdaq Staff Determination letter on October 29, 2002 indicating that the company has failed to comply with Marketplace Rule 4310(c)(8)(D) which required that Audible regain, by October 28, 2002, a minimum bid price for its common stock of $1.00 and with Marketplace Rule 4310(c)(2)(A) which requires that Audible meet the initial inclusion requirements of the Nasdaq SmallCap Market. Specifically, Rule 4310(c)(2)(A) requires that Audible have (i) stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. of $5 million; (ii) market value of listed securities Listed Security Securities that have been accepted for trading purposes by a recognized and regulated exchange. Notes: Listed securities have the advantage of higher liquidity within a regulated environment. of $50 million; (iii) $750,000 net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the in the most recently completed fiscal year or in two of the last three most recently completed fiscal years. Accordingly, the company's securities are subject to de-listing from the Nasdaq Small Cap Market. Audible will be requesting 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 that the panel will grant the company's request for continued listing. If the company's common stock is de-listed from the Nasdaq Small Cap Market, the company expects that its common stock 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. A live webcast of the financial results conference call is available on Wednesday, October 30th 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 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:
Amazon (ăm`əzŏn), in Greek mythology, one of a tribe of warlike women who lived in Asia Minor. .com's (www.amazon.com) exclusive provider of spoken word products for downloading or streaming via the Web. Additionally, the Company is strategically aligned with Random House, Inc., to pioneer the first-ever imprint im·print 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 Apple Corp., 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, www.audible.com and AudibleReady are registered trademarks of Audible, Inc.; AudibleListener 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
-------------------------
September 30, June 30,
------------- ------------
2002 2002
------------ ------------
(unaudited) (unaudited)
Revenue, net:
Consumer content $3,002,039 $2,429,060
Services 64,316 60,932
Hardware 152,243 236,687
Other 68,709 16,126
------------ ------------
Total revenue, net 3,287,307 2,742,805
------------ ------------
Operating expenses:
Cost of content and services revenue 1,475,558 1,152,526
Cost of hardware revenue 604,644 784,624
Production expenses 1,029,185 888,611
Development 702,463 554,363
Sales and marketing 3,016,255 3,208,520
General and administrative 1,005,892 893,136
------------ ------------
Total operating expenses 7,833,997 7,481,780
------------ ------------
Loss from operations (4,546,690) (4,738,975)
Other income, net 17,134 29,459
------------ ------------
Net loss (4,529,556) (4,709,516)
Accrued dividends on redeemable
preferred stock (354,195) (333,802)
------------ ------------
Net loss available to common shareholders ($4,883,751) ($5,043,318)
============ ============
Basic and diluted net loss available to
common shareholders per common share $(0.16) $(0.16)
============ ============
Weighted average shares outstanding 30,947,340 30,951,144
============ ============
AUDIBLE INC.
CONDENSED STATEMENT OF OPERATIONS
Three months ended Nine months ended
September 30, September 30,
------------------------- ---------------------------
2002 2001 2002 2001
------------ ------------ ------------- -------------
(unaudited) (unaudited)
Revenue, net:
Consumer content $3,002,039 $1,398,379 $7,442,070 $3,423,775
Services 64,316 120,566 299,942 635,375
Bulk content - 485,048 - 935,048
Hardware 152,243 140,044 734,877 1,093,387
Other 68,709 16,895 100,961 298,715
------------ ------------ ------------- -------------
Total revenue,
net 3,287,307 2,160,932 8,577,850 6,386,300
------------ ------------ ------------- -------------
Operating
Expenses:
Cost of content
and services
revenue 1,475,558 1,162,221 3,596,012 3,759,330
Cost of hardware
revenue 604,644 451,958 2,053,196 2,193,462
Production
expenses 1,029,185 1,235,676 2,946,614 4,577,708
Development 702,463 736,251 1,778,349 2,851,772
Sales and
marketing 3,016,255 3,436,519 9,264,769 11,151,068
General and
administrative 1,005,892 1,179,426 2,850,421 3,885,741
------------ ------------ ------------- -------------
Total operating
expenses 7,833,997 8,202,051 22,489,361 28,419,081
------------ ------------ ------------- -------------
Loss from
operations (4,546,690) (6,041,119) (13,911,511) (22,032,781)
Other income, net 17,134 100,525 76,399 519,266
------------ ------------ ------------- -------------
Net loss (4,529,556) (5,940,594) (13,835,112) (21,513,515)
Accrued dividends
on redeemable
preferred stock (354,195) (302,496) (1,014,942) (772,662)
------------ ------------ ------------- -------------
Net loss applicable
to common
shareholders ($4,883,751) ($6,243,090) ($14,850,054) ($22,286,177)
============ ============ ============= =============
Basic and diluted
net loss per
common share $(0.16) $(0.23) $(0.49) $(0.83)
============ ============ ============= =============
Weighted average
shares
outstanding 30,947,340 26,885,820 30,352,908 26,933,436
============ ============ ============= =============
AUDIBLE INC.
CONDENSED BALANCE SHEETS
September 30, December 31,
Assets 2002 2001
------------- ------------
(unaudited)
Current Assets
Cash and cash equivalents $3,670,017 $7,627,802
Accounts receivable, net of allowance 227,710 153,122
Royalty advances 93,000 56,682
Prepaid expenses and other current assets 519,359 661,192
Inventory 398,719 449,220
Note receivable due from stockholder,
current - 10,000
------------- ------------
Total current assets 4,908,805 8,958,018
Property and equipment, net 923,059 1,990,670
Note receivable due from stockholder, non
current - 35,000
Other assets 90,805 15,805
------------- ------------
Total Assets $5,922,669 $10,999,493
============= ============
Liabilities and Stockholders' Deficit
Current Liabilities
Accounts payable $1,215,191 $1,519,586
Accrued expenses and compensation 2,812,890 2,345,288
Royalty obligations, current 645,500 896,950
Advances, current 390,571 517,813
Accrued dividends on redeemable convertible
preferred stock 470,138 730,612
------------- ------------
Total current liabilities 5,534,290 6,010,249
Deferred cash compensation 90,550 93,550
Royalty obligations, non current 45,000 48,500
Advances, non current 34,031 77,780
Redeemable convertible preferred stock:
Series A 11,594,318 10,318,902
Stockholders' Deficit
Common stock 316,279 275,470
Additional paid-in capital 97,696,784 93,728,564
Deferred compensation and services (2,006,935) (5,884,267)
Notes due from stockholders for common
stock (289,545) (294,456)
Convertible preferred stock: Series B 1,137,500 -
Treasury stock at cost (184,740) (179,990)
Accumulated deficit (108,044,863) (93,194,809)
------------- ------------
Total Stockholders' Deficit (11,375,520) (5,549,488)
------------- ------------
Total Liabilities and Stockholders' Deficit $5,922,669 $10,999,493
============= ============
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