Posted on 11/14/2002 7:52:12 AM PST by Drango
Salon narrows loss as revenue rises Online advertising market improving, CEO says |
Though working to get more financing, the online media company has $266,000 in cash on its balance sheet and still plans to hit breakeven on a cash-flow basis.
"The company is not that cash intensive," said CEO Michael O'Donnell.
Revenue for the quarter jumped to $1 million from last year's $600,000 level. Net losses came in at $1.5 million, or 11 cents a share -- narrower than the $5.6 million, or 42 cents, reported in the year-ago quarter.
Salon (SALNC: news, chart, profile) said that on a pro forma basis, the company lost $1 million, or 7 cents a share, still narrower than the year-ago loss of $1.9 million, or 14 cents.
Specifically, the company's premium subscription totaled $500,000 for the quarter, up from $300,000 last year. There are now more than 41,000 paid users for its flagship Salon Premium service and 4,300 who subscribe to the Well/Table Talk areas.
O'Donnell said the subscription service's success has reinforced its importance to potential distribution partners.
"Because Salon started putting a price tag on the content, it puts you in a whole different league," he said. That means pursuing a cable-network model for distribution online, which could boost revenue next year.
Shouldering an equally important burden in a notoriously weak corporate spending climate, ad sales came in at $500,000 -- an increase over the $300,000 last year. Looking ahead, O'Donnell said ad spending should pick up after recently bottoming out.
"There's small signs that things are improving," he said, noting that advertisers are showing signs they're starting to plan for 2003.
Shares, which may be delisted from the Nasdaq SmallCap market, ended the day up 1 cent to 6 cents. A reverse stock split is a possibility, the company said in August.
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SALON WILL VERY LIKELY CEASE OPERATIONS IF IT IS UNABLE TO RAISE ADDITIONAL
WORKING CAPITAL ON OR BEFORE DECEMBER 1, 2002
THE CONTROVERSIAL CONTENT OF SALON'S WEBSITES MAY LIMIT ITS REVENUES
Many of our websites contain, and will continue to contain, content that is politically and culturally controversial. As a result of this content, current and potential advertisers and Salon Premium subscribers may refuse to do business with Salon. Salon's outspoken stance on political issues has and may continue to result in negative reactions from some users, commentators and other media outlets. From time to time, certain advocacy groups have successfully targeted Salon's advertisers in a attempt to persuade such advertisers to cease doing business with Salon. FREEPERS ! These efforts may be a material impediment to Salon's ability to grow and maintain advertising revenue.
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Mercedes-Benz is now advertising on Salon. Here is their contact info...
Hey! I'm only 32.
That's not really that old. :)
This is particularly meaningful considering that it's from a 10-Q that was published YESTERDAY. Nothing - NOTHING - matters but this number:
$266,000 in cash on its balance sheetThey're still going at a burn rate of ~$6 million per year. $500,000 per month. Which, indeed, leaves them with just a touch over 2 weeks' worth of cash left.
These are the final days. If you have Salon stock, you better dump it TODAY while it's hit a near-term high of 10 entire cents.
Very small; microscopic even.
"...noting that advertisers are showing signs they're starting to plan for 2003."
Planning on going elsewhere.
Yea, sure; &, this guy's sounding *happy*?
~oy vey.
Reminds me of the copy of "Rosie" {spit} which has been *mysteriously* showing up monthly -- uninvited -- appearing once again, just yeasterday.
On the front cover & in the corner appears in small print the words I'd been waiting for since the *thing* started showing up in my mailbox:
-Rosie's Farwell Edition-
Well alright then!!
Better late than never, I always say.
Adios *Rosie*!
...next up, Salon.com.
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Do we get to have a big FR party when their rusted hulk finally slips beneath the waves?
Whoa! Up to a whole $0.06/share!
Well, perhaps a mediocre-sized party. Don't want to give the impression we still thought Salon was relevant, and that it's about anything other than Schadenfreude now.
It might be fun to go revisit the remaining shell of what was once Table Talk one last time, to watch them all freak out as Shutdown Day approaches.
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Definitely. I can't wait.
The larger question is why is seeBS wasting their time on this penny stock loser??? They're hoping to raise awareness of Salon's plight in an effort to solicit a sugar daddy for a bail out? Unfreepingbelievable!
Rosie's(ptui) farewll issue, eh? heh,heh.....that's likely a keeper. Might come in handy for use near that jpeg you like so much ; )
FGS
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