Audible, Inc. Reports 26% Increase in Content and Services Revenues Over First Quarter 2001 On Strong Customer Gains; Analyst Estimate Surpassed.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)--Aug. 6, 2001 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 to inform and entertain anywhere and anytime with audio editions of books, newspapers, magazines, radio programs and original shows, announced results for the quarter ended June June: 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 today to discuss these results and the Company outlook. Details for teleconference provided below. Highlights: - Revenues from content and services during the second quarter of 2001 increased 243% year over year. - Operations have been realigned and management expects the company to reach cash flow positive with existing cash. Content and services revenues increased 26% in the second quarter of 2001 over the first quarter of 2001 to $1,669,593. Net cash used in Q2 2001 was $5.6 million. Loss from operations for the second quarter of 2001 was $8,281,119. Audible's cash and cash equivalents totaled $15.2 million on June 30, 2001. In other operating results, Audible's customer base for Q2 2001 increased 26% from Q1 2001 to more than 87,000 customers. This represents a 248% increase over the Q2 2000 customer base of 25,000. "Today we report our tenth straight quarter of intense growth as a public company," said 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, Inc.'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. . "Seventy percent of our content revenue was 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. , subscription-based revenue. Greater numbers of less expensive devices that play our incomparable (mathematics) incomparable - Two elements a, b of a set are incomparable under some relation <= if neither a <= b, nor b <= a. content come to market every few weeks. These trends - coupled with a streamlined operating plan designed to create positive cash flow by the end of 2002 using current cash - make this another quarter of which we are proud." "Audible has made great strides in the past 12 months in improving the efficiency and dependability dependability - software reliability of its internal and customer-facing systems," added Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. O. Kramer Kra·mer , Larry Born 1935. American writer and activist whose works include the novel Faggots (1978) and the play The Normal Heart (1985). In 1988 he founded the radical AIDS awareness group ACT UP (AIDS Coalition to Unleash Power). , president of Audible, Inc. "It is the efficiencies created by these improved systems and associated work processes that have allowed us to reduce our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. without putting the integrity of our business, the quality of our customers' experience, or our consistent growth at risk." Other recent highlights: - The AudibleReady(TM) module for 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. (R) Visor An electronic PDA originally from Handspring, Mountain View, CA (www.handspring.com) that was introduced in 1999 by the people who invented and marketed the PalmPilot. Based on the Palm OS, it was the first handheld to use the USB interface. (R), Audible Advisor(TM), became available; supported by comprehensive national public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most and marketing campaigns - 2,000 hours of new audio was added to the industry-leading selection at 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. - Audible and Iomega (Iomega Corporation, San Diego, CA, www.iomega.com) A mass storage company founded in 1980 that offers a variety of optical, hard disk and proprietary disk storage devices. In the early 1980s, Iomega introduced the Bernoulli Box, which was the first high-capacity, removable disk for announced retail availability of AudibleReady Iomega HipZip(R) digital audio players See digital music player, digital media hub and digital media server. - Audible and SONICblue (SONICblue Inc., Santa Clara, CA, www.rioaudio.com, www.replaytv.com) A former consumer electronics company that offered a variety of products, including Rio MP3 players, ReplayTV recorders, home networking and modems, professional display adapters and Web appliances. announced retail availability of AudibleReady Rio See RapidIO and MP3. (R)600 and 800 digital audio players - Audible launched its Tell A Friend program for promoting viral Meaning "related or caused by a virus," with regard to computers and information technology, the term refers less to a computer virus than it does to information that spreads quickly via the Internet. See viral marketing and viral video. , customer-based word of mouth - Audible demonstrated full wireless 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. of spoken audio files to Pocket PCs for enterprise use - Audible demonstrated consumer and enterprise spoken audio services on Microsoft Mobile Experience Tour which appeared in 12 cities nationwide A live Webcast of the Q2 2001 financial results conference call for Audible, Inc. is available today 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 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, 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 and Audible Advisor are trademarks 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
June 30, March 31,
----------------- ---------------
2001 2001
----------------- ---------------
(unaudited) (unaudited)
Revenue, net:
Content and services $1,669,593 $1,320,612
Hardware 235,369 601,410
Other 73,758 208,062
----------------- ---------------
Total revenue, net 1,978,720 2,130,084
----------------- ---------------
Operating expenses:
Cost of content and services revenue 1,292,914 1,304,195
Cost of hardware revenue 778,514 962,990
Production expenses 1,683,982 1,658,050
Development 1,236,047 879,474
Sales and marketing 3,901,856 3,696,129
General and administrative 1,366,526 1,339,789
----------------- ---------------
Total operating expenses 10,259,839 9,840,627
----------------- ---------------
Loss from operations (8,281,119) (7,710,543)
Other income, net (183,120) (235,621)
----------------- ---------------
Net loss (8,097,999) (7,474,922)
Accrued dividends on redeemable
preferred stock 299,208 170,958
----------------- ---------------
Net loss available to
common shareholders ($8,397,207) ($7,645,880)
================= ===============
Basic and diluted net loss
available to common
shareholders per common share $ (0.31) $ (0.28)
================= ===============
Adjusted basic and diluted
net loss available to common
shareholders per common share (1) $ (0.29) $ (0.25)
================= ===============
Weighted average shares outstanding 26,919,837 26,995,860
================= ===============
(1) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $386,464 and $698,256 for the three
months ended June 30, 2001 and March 31, 2001 respectively, and for
non cash compensation related to employee stock grants and options
totaling $93,469 and $92,350 for the three months ended June 30, 2001
and March 31, 2001, respectively.
AUDIBLE INC.
CONDENSED STATEMENT OF OPERATIONS
Three months ended Six months ended
June 30, June 30,
------------------------ -----------------------
2001 2000 2001 2000
----------- ---------- ----------- ----------
(unaudited) (unaudited)
Revenue, net:
Content and services $1,669,593 $486,880 $2,990,205 $801,947
Hardware 235,369 164,968 836,779 384,162
Other 73,758 189,129 281,820 378,258
----------- ---------- ----------- ----------
Total revenue, net 1,978,720 840,977 4,108,804 1,564,367
----------- ---------- ----------- ----------
Operating Expenses:
Cost of content and
services revenue 1,292,914 909,544 2,597,109 1,303,787
Cost of hardware revenue 778,514 224,897 1,741,504 1,044,934
Production expenses 1,683,982 1,709,293 3,342,032 3,427,646
Development 1,236,047 1,177,077 2,115,521 2,345,530
Sales and marketing 3,901,856 4,550,793 7,597,985 8,745,590
General and
administrative 1,366,526 1,434,492 2,706,315 2,921,124
----------- ---------- ----------- ----------
Total operating
expenses 10,259,839 10,006,096 20,100,466 19,788,611
----------- ---------- ----------- ----------
Loss from operations (8,281,119) (9,165,119) (15,991,662) (18,224,244)
Other income, net (183,120) (410,006) (418,741) (972,134)
----------- ---------- ----------- ----------
Net loss (8,097,999) (8,755,113) (15,572,921) (17,252,110)
Accrued dividends on
redeemable
preferred stock 299,208 0 470,166 0
----------- ---------- ----------- ----------
Net loss applicable to
common shareholders ($8,397,207)($8,755,113)($16,043,087)($17,252,110)
=========== ========== =========== ===========
Basic and diluted net loss
per common share $ (0.31) $ (0.32) $ (0.60) $ (0.66)
=========== ========== =========== ===========
Adjusted basic and
diluted net loss per
common share (1)(2) $ (0.29) $ (0.31) $ (0.55) $ (0.62)
=========== ========== =========== ===========
Weighted average
shares outstanding 26,919,837 26,940,204 26,957,639 26,269,020
=========== ========== =========== ===========
(1) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $386,464 and $351,053 for the three
months ended June 30, 2001 and June 30, 2000, respectively, and for
non cash compensation related to employee stock grants and options
totaling $93,469 and $146,534 for the three months ended June 30, 2001
and June 30, 2000, respectively.
(2) Adjusted to exclude non-cash amortization relating to warrants
issued for services totaling $1,084,720 and $662,592 for the six
months ended June 30, 2001 and June 30, 2000, respectively, and for
non cash compensation related to employee stock grants and options
totaling $185,819 and $242,635 for the six months ended June 30, 2001
and June 30, 2000, respectively.
AUDIBLE INC.
CONDENSED BALANCE SHEETS
June 30, December 31,
Assets 2001 2000
------------ ------------
(unaudited)
Current Assets
Cash, cash equivalents, and
short-term investments
including interest receivable $ 15,216,535 $ 16,202,096
Accounts receivable, net of
allowance for doubtful accounts 147,600 193,752
Inventory 337,921 118,170
Royalty advances 348,303 847,396
Prepaid expenses and
other current assets 490,374 464,133
Notes receivable due
from stockholders, current 10,000 50,000
------------ ------------
Total current assets 16,550,733 17,875,547
Property and equipment, net 2,618,701 2,818,792
Notes receivable due from
stockholders, non current 40,000 -
Other assets 28,697 37,510
------------ ------------
Total Assets $ 19,238,131 $ 20,731,849
============ ============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 1,999,776 $ 1,754,440
Accrued expenses and compensation 2,751,478 2,397,879
Royalty obligations, current 834,700 772,700
Current maturities of
obligations under capital leases 2,872 47,187
Advances, current 182,041 453,476
Accrued dividends on redeemable
convertible preferred stock 470,166 -
------------ ------------
Total current liabilities 6,241,033 5,425,682
Deferred cash compensation 98,485 211,065
Royalty obligations, non current 104,750 502,000
Redeemable convertible
preferred stock: Series A 10,000,000 -
Stockholders' Equity
Common stock 275,470 275,470
Additional paid-in capital 93,282,463 92,196,174
Deferred compensation and services (8,766,441) (11,867,358)
Notes due from stockholders
for common stock (310,482) (391,703)
Treasury stock at cost (167,640) (143,061)
Accumulated deficit (81,519,507) (65,476,420)
------------ ------------
Total Stockholders' Equity 2,793,863 14,593,102
------------ ------------
Total Liabilities and
Stockholders' Equity $ 19,238,131 $ 20,731,849
============ ============
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