Salon narrows loss as revenue rises (ONLY TWO WEEKS OF CASH LEFT!)

CBS Marketwatch ^ | Nov. 13, 2002 | August Cole

[Drango]

Salon narrows loss as revenue rises
Online advertising market improving, CEO says

SAN FRANCISCO (CBS.MW) -- Salon Media Group said Wednesday that its subscription-driven second-quarter sales hit $1 million and helped the online media company narrow its losses.

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.

[Drango]

The 10Q report
http://biz.yahoo.com/e/021113/salnc10-q.html
has some hidden nuggets such as...

SALON WILL VERY LIKELY CEASE OPERATIONS IF IT IS UNABLE TO RAISE ADDITIONAL

WORKING CAPITAL ON OR BEFORE DECEMBER 1, 2002

[Sparta]

We don't we pool some money(about $1,000) should suffice (about all it's worth), launch a hostile takeover, and finally launch Magazine FreeRepublic.

[Sparta]

We= Why

[KantianBurke]

Its expected that more people would go to Salon nowadays. After the harsh elections and Bush's strong popularity, the Rats are desperatly looking for some leftist sites of comfort and comradeship.

[Drango]

also from their 10Q...

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.

........................................................

Mercedes-Benz is now advertising on Salon. Here is their contact info...

Mercedes-Benz would like to hear from you. If you have a question that isn't answered in our FAQ or if you'd like to get in touch with a Mercedes-Benz Representative, this is the place to do it. Please do not hesitate To:

·  Call us at 1-800-FOR-MERCEDES (1-800-367-6372)
·  Contact us by e-mail
·  Send us a letter:
   Mercedes-Benz USA, LLC
   Customer Assistance Center
   3 Paragon Drive
   Montvale, N.J. 07645

[Drango]

deathwatch ping

[Drango]

ping to an old list...

[Constitution Day]

ping to an old list...

Hey! I'm only 32.
That's not really that old. :)

[Timesink]

SALON WILL VERY LIKELY CEASE OPERATIONS IF IT IS UNABLE TO RAISE ADDITIONAL WORKING CAPITAL ON OR BEFORE DECEMBER 1, 2002

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 sheet

They'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.

[Landru]

"'There's small signs that things are improving,' he said,..."

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.

[Timesink]

To find all articles tagged or indexed using Salon Deathwatch, click below:
	click here >>>	Salon Deathwatch	<<< click here
(To view all FR Bump Lists, click here)

[Constitution Day]

These are the final days.

Do we get to have a big FR party when their rusted hulk finally slips beneath the waves?

[Grampa Dave]

Thanks for the ping. Maybe the old nazis and new nazis at Mercedes who hate Israel and Jews anywhere are trying to save Salon. Salon for the most part is pro Islamofascist and Islamakazi.

I can't believe that many rats who go to Salon.com can afford a used bike let alone a Mercedes. Probably most of them steal bikes for transportation.

Any big corporation advertising in Salon at this time is just trying to keep it alive. The boards of these companies need to fire whomever authorized advertising in Salon.com..

The new head of the SEC might want to investigate any company which wastes precious advertising dollars on a political site like Salon.com.. Each $ spent on wasted advertising in Salon.com is a dollar not invested in the growth of that company or takes away from dividends to the stock holders.

[martin_fierro]

Whoa! Up to a whole $0.06/share!

[Timesink]

Do we get to have a big FR party when their rusted hulk finally slips beneath the waves?

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.

[Timesink]

To find all articles tagged or indexed using Salon Deathwatch, click below:
	click here >>>	Salon Deathwatch	<<< click here
(To view all FR Bump Lists, click here)

[Constitution Day]

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.

Definitely. I can't wait.

[SoDak]

I'm amazed that they keep somehow getting enough cash to stay in business. I thought they were scheduled to die on November 11th or thereabouts. I'll be hoping that Dec 1st is truly the day the ship goes down, and the rats scatter.

[RooRoobird14]

LOL!!! So exactly what are they paying Snarling Joe Conason with? Free pantyhose and pink lingerie?

[ForGod'sSake]

"'There's small signs that things are improving,' he said,..."

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