MP3.com Turns In Loss, but Beats Estimates as Revenue Skyrockets
MP3.com Inc. posted a fourth-quarter loss that beat Wall Street estimates as revenue rocketed twentyfold, powered by advertisers’ enthusiasm for the Internet music Web site.
The San Diego-based company, which boasts a quarter of a million songs by mostly unsigned musicians for free download over the Internet, said it lost $10.6 million, or 17 cents per share, excluding charges, in the latest quarter, compared with a break-even performance a year earlier.
Analysts had expected the company to lose 23 cents a share, according to First Call/Thomson Financial. The results pushed MP3.com’s stock up in after-hours trading, where it rose to $31.63, after closing off $1 at $30 in regular Nasdaq trading. Revenue soared to nearly $15.3 million from $613,000 a year ago, fueled by advertising revenue that nearly quadrupled from the previous quarter.
Including noncash charges related to a minority investment in MP3radio.com, a joint venture with cable TV operator Cox Communications Inc., MP3 said its loss totaled $14.86 million, or 23 cents a share.
MP3.com’s site attracted 519,000 unique daily visitors in December, and logged 97 million page views that month, it said, but did not provide year-earlier comparisons.
The company’s balance sheet showed more than $100 million in cash, which Chief Executive Michael Robertson said would help it expand its user base and swelling catalog of music.
But MP3.com’s aggressive push to try to revolutionize the music business and provide all music to everyone at any time has landed it in hot water with record labels, which are eager to guard their share of the $40 billion music market.
At a Glance
Other technology earnings, excluding one-time gains or charges unless noted, include:
* Computer Associates International Inc. posted earnings far better than expected for its fiscal third quarter as the software maker’s revenue climbed 33% to $1.81 billion. Profit including amortization charges and an asset write-down rose 13% to $401 million, or 72 cents a share, from $355 million, or 64 cents, a year ago. Excluding the charges, earnings grew 28% to 91 cents from 71 cents a year ago.
* EMC Corp. said its profit from operations rose 38% to $376.5 million, or 34 cents a share, 3 cents better than analysts expected. The maker of computer data-storage systems for corporate networks said revenue grew 21% to $1.88 billion, but analysts were expecting as much as $1.97 billion in revenue after EMC’s acquisition of Data General Corp. in October. Chief Executive Michael Ruettgers said that without Data General, EMC’s sales would have risen 32%.
EMC also said it plans to add about 4,000 workers worldwide, a 23% addition to its current work force. EMC shares fell $9 to close at $111 on the New York Stock Exchange.
* InfoSpace.com Inc., which provides Internet content, said it earned $5 million, or 10 cents a share, in the fourth quarter, excluding amortization of goodwill and acquisition costs, as revenue more than tripled and more Web and communications companies snapped up its services. The company lost $6.2 million, or 9 cents, a year ago. It was expected to break even excluding goodwill costs, according to First Call/Thomson Financial. Revenue rose to $14.4 million from $4.1 million.
* JDS Uniphase Corp. said profit rose to $65.7 million, or 18 cents a share, in its fiscal second quarter, exceeding analyst expectations of 15 cents, as sales more than doubled to $281.7 million from $128.7 million at the maker of fiber-optic equipment parts. JDS Uniphase had profit of $26.8 million, or 8 cents a share, a year ago, excluding costs. Including acquisition costs, JDS had a fiscal second-quarter loss of $131.2 million, or 38 cents a share, compared with net income including costs of $2.4 million or 1 cent, a year ago. JDS Uniphase shares fell $15.25 to close at $216.75 on Nasdaq before the results were announced.
* Macromedia Inc., a maker of software used to design Web sites, said it earned 15 cents a share, excluding acquisition-related costs, in its fiscal third quarter, better than the 12 cents analysts expected, as sales jumped 69% to $65.5 million. Including the costs, Macromedia had a net loss of $85,000, or break even on a per-share basis, compared with net income of $782,000, or 2 cents a share, a year earlier.
