MP3.com: $20.2 Million in Second-Quarter Revenues

MP3.com has announced second-quarter revenues totaling $20.2 million, marking a 15 percent increase over first-quarter revenues of $17.5 million, and a 956 percent increase over the same quarter of 1999.

Pro forma net loss for the quarter was $5.2 million, or $0.08 per basicand diluted share, compared with $8.4 million, or $0.13 per basic and diluted share, for the first quarter of 2000, and $6.3 million, or $0.22 per basic and diluted share, for the second quarter of 1999. Pro forma net loss includes amortization of deferred compensation, but excludes non-operating losses associated with the company's minority interest in MP3radio.com, reserves taken against the company's strategic investment portfolio, and a charge for the estimated total costs related to copyright issues associated with the My.MP3.com service, including the lawsuits filed by major recording companies and other parties.

When the above non-operating charges are included, the net loss for the second quarter was $177.1 million, or $2.71 per basic and diluted share, compared with $18.1 million, or $0.28 per basic and diluted share, in the 2000 first quarter.

"Notwithstanding the difficult challenges during the last quarter, as well as adverse Internet market conditions, we achieved solid top-line growth," remarked Michael Robertson, chairman and chief executive officer of MP3.com. "In addition, we achieved better-than-expected gross margins. This quarter's operational results continue to reflect a steadfast commitment to our business and confidence in our strategic vision and position."