MP3.com Q2 revenues way up, profits way down
But what else do you expect from Internet IPOs these days?
Web-based music supplier MP3.com yesterday followed the trend of Internet IPO'd companies by announcing major revenue gains accompanied by large losses for its latest fiscal quarter. MP3.com's second quarter, ended 30 June, saw revenues rise 769 per cent year-on-year to $1.9 million. That figure also represents growth of 286 per cent over the previous quarter. However, the company's loss increased much more dramatically, widening from $23,000 last year to $6.3 million this time. Taking charges relating to the company's recent IPO and other "stock-based compensation charges", MP3.com's Q2 loss was just $3.5 million, compared to $75,000 for the same period last year. MP3.com's IPO, which took place earlier this month, netted the company $361 million, so it has plenty of cash to cope with its losses. Still, if it's to justify the faith of the its long-term investors -- assuming it actually has any; as a Net stock, you have to wonder -- it needs to expand its artist roster with the kind of names that will significantly boost its CD and download sales. That means focusing more on developing its role as a label and less as a online retailer. ®
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