Sales Up, Losses Fall at Audible
By Staff -- Publishers Weekly, 8/27/2001
Total revenues at Audible Inc. jumped 135%, to nearly $2 million, for the second quarter ended June 30, 2001, compared to the second quarter in 2000. Net loss in the period fell to $8.1 million from $8.7 million. Strongest growth came in Audible's content and services segment, where revenues soared 243%, to $1.7 million; hardware sales rose to $235,369 from $164,968. The jump in content sales was attributed to an increase in Audible's customer base, to 87,000 customers, plus higher subscription revenue.
Audible has $15.2 million in cash, and company chairman Don Katz said that should be enough to allow the company to generate positive cash flow by the end of 2002 without the need for additional funding. To help it become cash-flow positive, Audible cut 40% of its staff in July (News, July 30). The company said it expects to take a $300,000 charge in the third quarter to cover the severance costs associated with the downsizing.
For the first six months of the year, sales rose 156%, to $4.1 million, and the net loss fell to $15.6 million from $17.2 million. As of June 30, Audible had an accumulated deficit of $81.5 million.
