Audible Announces 88% Year-over-Year Content and Services Revenue Growth; Raises 2004 Guidance; Company Reports Record New AudibleListener Membership Additions, Solid Free Cash Flow and Profit Growth.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. -- 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 digitally delivered spoken word audio, today announced financial results for the three months ended September September: see month. 30, 2004. Third quarter highlights: --Total revenue of $9.3 million, up 87% over the third quarter of 2003 and 15% over the second quarter of 2004. --Net content and services revenue of $9.0 million, up 88% over the third quarter of 2003 and 14.5% over the second quarter of 2004. --Net income of $483,884 and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.02 --Free cash flow(*) of $1.0 million, compared to ($593,000) cash used in the third quarter of 2003 and $611,000 in the second quarter of 2004. --The addition of 40,566 new customers, of which 31,726, or a record 78%, were AudibleListener(R) members. Newly acquired AudibleListeners rose 29% over the second quarter of 2004. "The third quarter was marked by important growth initiatives and particularly strong new AudibleListener memberships," noted 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. R. 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 success converting one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. buyers and free content users to AudibleListener membership is reflected in the numbers and percentage of new AudibleListener customers versus the total new customers. The strong operational performance in the quarter was matched by important strategic advances, notably our announcement of imminent operations in both France and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and our exciting partnership with Sprint, Audible's first major wireless carrier technology and 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 alliance." Recent highlights: --Audible, Bertelsmann's Verlagsgruppe Random House and holtzbrinck networXs announced the forthcoming launch of audible.de, a German language version of the Audible service. --During the quarter, Audible and Bertelsmann's France Loisirs announced audible.fr, a local operation dedicated to bringing the spoken word to the French-speaking adj. 1. able to communicate in French. Adj. 1. French-speaking - able to communicate in French communicatory, communicative - able or tending to communicate; "was a communicative person and quickly told all she knew"- W.M.Thackeray world. --Audible and Sprint PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. launched an AudibleReady(R) marketing and technology program with Sprint PCS Vision Smart Devices from Audiovox Audiovox Corporation (NASDAQ: VOXX) is a leading international supplier and value added service provider in the consumer electronics industry. The Company markets mobile and consumer electronics products under the Audiovox brand name and other brand names such as Jensen, , palmOne, and Samsung. Each new Smart Device will be marketed with the Audible service through Sprint's retail or business channels Business channels are TV channels that concentrate on business news. List of channels
Business Outlook The Company has raised its guidance of 2004 total revenue to the range of $33 million to $34 million, up from the previously announced range of $29.5 million to $31.5 million. This would represent a revenue growth rate of 71% to 76% over $19.3 million reported in total revenue in 2003. Management also raised its guidance of 2004 total free cash flow to $2.5 million to $3.0 million from the previously stated expectation of $2.0 million to $2.4 million. Audible expects net income for the full year of 2004 to be at the higher end Coordinates: For other places with the same name, see Billinge. Higher End or Billinge Higher End is a district of the Metropolitan Borough of Wigan, in Greater Manchester, England. of the $1.0 million to $1.4 million range before dividend and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. conversion charges. Conference Call Senior management will host 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 as well as related financial and operational developments. A live webcast of the conference call is available at www.audible.com/ir for audio streaming See streaming audio. access to the call. To participate in the call, the dial-in number is (877) 236-1078 or +1 (213) 408-0633 for international callers. A dial-in replay will be available on Wednesday Wednesday: see week. , November November: see month. 3 at (888) 566-0191 or +1 (402) 351-0790, and the audio replay will be available online at www.audible.com/ir. (*)Use of Non-GAAP Measures Management believes that free cash flow is a useful measure of liquidity because it includes cash provided by operating activities as well as the impact of cash used for investment in property and equipment. However, this non-GAAP measure should be considered in addition to, not as a substitute for, or superior to, net cash provided by (used in) operating activities, or other financial measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . A reconciliation to the GAAP equivalents of this non-GAAP measure is contained in tabular form Same as table view with respect to printed output. on the attached unaudited financial statements. To enhance the clarity of Audible's operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. presentation, certain 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. for historical periods in the attached Statements of Operations have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current presentation. About 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.com, recently named the best consumer Web service by CNet.com, and one of the "Best of Today's Web" by PC World, features daily audio editions of The Wall Street Journal and The 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 Times -- available on a subscription basis in time for the morning drive to work each day -- as well as Forbes, Harvard Business Review Harvard Business Review is a general management magazine published since 1922 by Harvard Business School Publishing, owned by the Harvard Business School. A monthly research-based magazine written for business practitioners, it claims a high ranking business readership and , Scientific American Scientific American U.S. monthly magazine interpreting scientific developments to lay readers. It was founded in 1845 as a newspaper describing new inventions. By 1853 its circulation had reached 30,000 and it was reporting on various sciences, such as astronomy and , and Fast Company. The site offers a powerful collection of audiobook best sellers and classics by authors such as Tom Clancy For the member of the Irish folk band The Clancy Brothers, see Tom Clancy (singer) and for the American Celticist, see Thomas Owen Clancy. Thomas Leo Clancy Jr. (born April 12 1947), better known as Tom Clancy , Stephen King <noinclude></noinclude>
Stephen Edwin King (born September 21, 1947) is an American author of over 200 stories including over 50 bestselling horror and , John Grisham “Grisham” redirects here. For other uses, see Grisham (disambiguation). John Ray Grisham (born February 8, 1955) is a former politician, retired attorney, American novelist and author best known for his works of modern legal drama. , Janet Evanovich Janet Evanovich (born April 22, 1943, in South River, New Jersey) is an American writer. She began her career writing short contemporary romance novels under the pen name Steffie Hall, but gained fame authoring a series of contemporary mysteries featuring Stephanie Plum, a lingerie , James Patterson
Hawking, Stephen William Hawking , William Shakespeare, Emily Dickinson, and Jane Austen. There are also speeches, lectures, and on-demand radio programs including Marketplace, All Things Considered All Things Considered (ATC) is a news radio program in the United States, broadcast on the National Public Radio network. It was the first news program on the network, and is broadcast live worldwide through several outlets. , Car Talk, Fresh Air, and This American Life This American Life (TAL) is a weekly hour-long radio program produced by Chicago Public Radio. It is distributed by Public Radio International and is also available as a free weekly podcast. , and original shows such as RobinWilliams@audible.com. All of the programs at audible.com are available for computer-based playback Playback could mean:
About Audible, Inc.: Audible(R) (www.audible.com(R)) is the Internet's leading premium spoken audio source. Content from Audible is downloaded and played back on personal computers, CDs, or AudibleReady(R) computer-based mobile devices. Audible has more than 55,000 hours of audio programs from more than 175 content partners that include leading audiobook publishers, broadcasters, entertainers, magazine and newspaper publishers, and business information providers. Audible.com is Amazon.com's and the Apple iTunes Music Store's pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae provider of spoken word products for downloading downloading - download or streaming via the Web. Additionally, the Company is strategically aligned with Random House, Inc. in 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 relationships are Apple Corp., Creative Labs, 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, , palmOne, Inc., PhatNoise Inc., RealNetworks, Inc., Rio Audio, Roxio, Inc., 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. Inc., and VoiceAge Corporation. Audible, www.audible.com, AudibleListener, and AudibleReady are registered trademarks of Audible, Inc. and all are part of the family of Audible, Inc. trademarks. Other product or service names mentioned herein are the trademarks of their respective owners. This press release contains information about Audible, Inc. 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. about the company. 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 STATEMENTS OF OPERATIONS
Three months ended
-------------------------
September 30, June 30,
2004 2004
----------- -----------
(unaudited) (unaudited)
Revenue:
Consumer content $ 9,110,575 $ 7,938,082
Point of sale rebates (101,640) (67,775)
Services 17,791 12,901
----------- -----------
Net content and services 9,026,726 7,883,208
Hardware 186,408 162,749
Related party revenue 65,762 -
Other - 16,131
----------- -----------
Total revenue, net 9,278,896 8,062,088
----------- -----------
Operating expenses:
Cost of content and services revenue:
Royalties and other content charges 2,838,098 2,600,606
Discount certificate rebates 434,170 305,235
----------- -----------
Total cost of content and services revenue 3,272,268 2,905,841
Cost of hardware revenue 747,734 613,568
Operations 1,318,442 1,196,685
Technology and development 1,271,737 1,280,970
Marketing 1,180,929 999,711
General and administrative 959,518 840,537
----------- -----------
Total operating expenses 8,750,628 7,837,312
----------- -----------
Income from operations 528,268 224,776
Other income, (expense)
Interest income 23,467 44,688
Interest expense (10,069) (14,090)
----------- -----------
Total other income, net 13,398 30,598
----------- -----------
Income before income taxes 541,666 255,374
Income taxes (57,782) (18,789)
----------- -----------
Net income $ 483,884 $ 236,585
=========== ===========
Basic net income per common share $ 0.02 $ 0.01
----------- -----------
Weighted average basic common shares
outstanding 21,270,416 21,238,711
----------- -----------
Diluted net income per common share $ 0.02 $ 0.01
----------- -----------
Weighted average diluted shares outstanding 23,678,669 23,620,502
----------- -----------
AUDIBLE INC.
STATEMENTS OF OPERATIONS
Three months ended Nine Months ended
September 30, September 30,
------------------------- --------------------------
2004 2003 2004 2003
----------- ----------- ------------ -----------
(unaudited) (unaudited)
Revenue, net:
Consumer content $ 9,110,575 $ 4,789,921 $ 23,724,075 $12,882,505
Point of sale
rebates (101,640) - (285,645) -
Services 17,791 20,337 47,794 78,918
----------- ----------- ------------ -----------
Net content and
services 9,026,726 4,810,258 23,486,224 12,961,423
Hardware 186,408 136,198 530,874 488,522
Related party
revenue 65,762 - 65,762 -
Other - 16,126 32,257 48,378
----------- ----------- ------------ -----------
Total revenue,
net 9,278,896 4,962,582 24,115,117 13,498,323
----------- ----------- ------------ -----------
Operating
expenses:
Cost of content
and services
revenue:
Royalties and
other content
charges 2,838,098 1,331,162 7,492,866 3,434,745
Discount
certificate
rebates 434,170 - 778,505 -
----------- ----------- ------------ -----------
Total cost of
content and
services revenue 3,272,268 1,331,162 8,271,371 3,434,745
Cost of hardware
revenue 747,734 444,544 1,879,337 1,505,356
Operations 1,318,442 960,695 3,658,374 2,847,021
Technology and
Development 1,271,737 1,198,418 3,807,839 3,638,851
Marketing 1,180,929 1,038,313 3,332,926 3,596,592
General and
administrative 959,518 867,025 2,367,233 2,074,113
----------- ----------- ------------ -----------
Total operating
expenses 8,750,628 5,840,157 23,317,080 17,096,678
----------- ----------- ------------ -----------
Income (loss)
from operations 528,268 (877,575) 798,037 (3,598,355)
Other income,
(expense)
Interest income 23,467 5,171 83,122 15,183
Interest expense (10,069) - (26,347) -
----------- ----------- ------------ -----------
Total other
income, net 13,398 5,171 56,775 15,183
----------- ------------ ------------ ------------
Income (loss)
before taxes 541,666 (872,404) 854,812 (3,583,172)
Income taxes (57,782) - (76,571) -
----------- ------------ ------------ ------------
Net income (loss) 483,884 (872,404) 778,241 (3,583,172)
Dividends on
convertible
preferred stock - (454,197) (614,116) (1,194,828)
Preferred stock
discount - (1,444,444) - (1,444,444)
Charges related to
conversion of
convertible
preferred stock - - (9,873,394) -
----------- ----------- ------------ -----------
Total preferred
stock expense - (1,898,641) (10,487,510) (2,639,272)
----------- ------------ ------------ ------------
Net income (loss)
applicable to
common
shareholders $ 483,884 $(2,771,045) $ (9,709,269) $(6,222,444)
=========== =========== ============ ===========
Basic net income
(loss) per
common share $ 0.02 $ (0.27) $ (0.48) $ (0.60)
----------- ----------- ------------ -----------
Weighted average
basic common
shares
outstanding 21,270,416 10,341,019 20,394,380 10,335,469
----------- ----------- ------------ -----------
Diluted net
income (loss)
per common share $ 0.02 $ (0.27) $ (0.48) $ (0.60)
----------- ----------- ------------ -----------
Weighted average
diluted shares
outstanding 23,678,669 10,341,019 20,394,380 10,335,469
----------- ----------- ------------ -----------
AUDIBLE INC.
CONDENSED BALANCE SHEETS
September 30, December 31,
Assets 2004 2003
------------- -------------
(unaudited)
Current Assets
Cash and cash equivalents $ 11,447,683 $ 9,074,987
Accounts receivable, net of allowance 530,230 245,641
Accounts receivable from related parties 65,762 -
Royalty advances 28,500 72,338
Prepaid expenses and other current
assets 638,424 596,720
Inventory 150,838 99,936
------------- -------------
Total current assets 12,861,437 10,089,622
Property and equipment, net 963,950 272,851
Other assets 20,805 418,524
------------- -------------
Total Assets $ 13,846,192 $ 10,780,997
============= =============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 713,989 $ 526,359
Accrued expenses and compensation 3,567,463 2,809,860
Royalty obligations 261,500 408,000
Capital lease obligations 274,864 -
Deferred revenue and advances 1,186,249 873,520
------------- -------------
Total current liabilities 6,004,065 4,617,739
Deferred cash compensation - 58,750
Stockholders' Equity
Convertible preferred stock: Series A - 13,027,375
Convertible preferred stock: Series B - 1,137,500
Common stock 215,110 150,155
Additional paid-in capital 139,288,050 110,507,841
Deferred compensation and services (169,086) (239,425)
Notes due from stockholders for common
stock - (58,750)
Treasury stock at cost (184,740) (184,740)
Accumulated deficit (131,307,207) (118,235,448)
------------- -------------
Total Stockholders' Equity 7,842,127 6,104,508
------------- -------------
Total Liabilities and Stockholders'
Equity $ 13,846,192 $ 10,780,997
============= =============
AUDIBLE INC.
CONDENSED STATEMENTS OF CASH FLOWS
Three months ended Nine months ended
September 30, September 30,
------------------------ -------------------------
2004 2003 2004 2003
----------- ---------- ----------- -----------
(unaudited) (unaudited)
Cash flows from
operating
activities:
Net income
(loss) $ 483,884 $ (872,404) $ 778,241 $(3,583,172)
Adjustments to
reconcile net
income (loss) to
net cash provided by
(used in) operating
activities:
Depreciation
and amortization 121,857 95,489 377,284 403,555
Services rendered
for common stock
and warrants - 143,378 432,327 884,068
Non-cash
compensation charge 14,913 29,142 70,339 139,630
Non-cash forgiveness
of notes due from
stockholders for
common stock - - - 198,995
Deferred cash
compensation - - (58,750) -
Changes in
assets and
liabilities:
Accounts
receivable, net (87,246) 60,138 (284,589) (61,330)
Accounts
receivable from
related parties (65,762) - (65,762) -
Royalty advances (14,700) 142,461 43,838 11,761
Prepaid expenses
and other
current assets 295,916 184,297 (41,704) 394,655
Inventory 52,094 99,866 (50,902) (123,062)
Other assets - (151,658) 397,719 (238,427)
Accounts payable 224,055 (382,340) 187,630 (461,616)
Accrued expenses
and compensation 117,608 256,736 765,103 646,662
Royalty
obligations (19,000) (114,000) (146,500) (132,500)
Deferred revenue
and advances 114,411 (31,630) 312,729 185,390
------------ ----------- ------------ ------------
Net cash provided by
(used in) operating
activities 1,238,030 (540,525) 2,717,003 (1,735,391)
----------- ---------- ----------- -----------
Cash flows from
investing activities:
Purchases of
property and
equipment (87,269) (52,792) (325,080) (93,979)
----------- ---------- ----------- -----------
Net cash used in
investing
activities (87,269) (52,792) (325,080) (93,979)
----------- ---------- ----------- -----------
Cash flows from
financing
activities:
Proceeds from
sale of Series C
Convertible
Preferred Stock, net - 5,859,772 - 5,859,772
Proceeds from
exercise of common
stock warrants - - 27,500 -
Proceeds from
exercise of common
stock options 34,529 30,037 362,962 30,037
Payments received on
notes due from
stockholders for
common stock - - 58,750 -
Principal
payments made on
capital lease
obligations (149,874) - (468,439) -
----------- ---------- ----------- -----------
Net cash (used in)
provided by
financing
activities (115,345) 5,889,809 (19,227) 5,889,809
----------- ---------- ----------- -----------
Increase in cash
and cash
equivalents 1,035,416 5,296,492 2,372,696 4,060,439
Cash and cash
equivalents at
beginning of
period 10,412,267 1,586,027 9,074,987 2,822,080
----------- ---------- ----------- -----------
Cash and cash
equivalents at
end of period $11,447,683 $6,882,519 $11,447,683 $ 6,882,519
=========== ========== =========== ===========
Non-cash
investing and
financing
activities:
Purchase of property
and equipment
through capital
leases $ - $ - $ 743,302 $ -
Reversal of unused
accrued expense
related to Series C
financing - - 7,500 -
----------- ---------- ----------- -----------
$ - $ - $ 750,802 $ -
----------- ---------- ----------- -----------
Non-GAAP Free
Cash Flow
reconciliation:
Net cash
provided by
(used in)
operating
activities $ 1,238,030 $ (540,525) $ 2,717,003 $(1,735,391)
Purchases of
property and
equipment and
capital lease
payments (237,143) (52,792) (793,519) (93,979)
------------ ----------- ------------ ------------
Non-GAAP Free
Cash Flow $ 1,000,887 $ (593,317) $ 1,923,484 $(1,829,370)
----------- ---------- ----------- -----------
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