Medialink reports 34.5% decrease in Q1 revenue

NEW YORK: Medialink reported $3.2 million in revenues for its first quarter, which ended March 31, 2009, a 34.5% decrease from the $4.9 million it brought in during Q1 last year. The results were in line with the company's expectations.

NEW YORK: Medialink reported $3.2 million in revenues for its first quarter, which ended March 31, 2009, a 34.5% decrease from the $4.9 million it brought in during Q1 last year. The results were in line with the company's expectations, and its chief executive said that revenues were increasing, month-by-month this year.

“Revenue has increased each month of 2009 even in the face of the [economic] challenges,” said Laurence Moskowitz, chairman, president, and CEO of Medialink, during the earnings call this morning. He also attributed an increase in operating margins to the company's continued cost-cutting measures.

For the quarter, though, Medialink suffered a net loss of $1.5 million, comprised of a $1.4 million loss from continuing operations and $120,000 loss from discontinued operations as it winds down its Medialink UK business. For the comparable period in 2008, the company reported a net loss of $2.5 million.

At the end of the quarter the company had $4.7 million in cash and $3.4 million in working capital. As in the previous earnings, Medialink asserted in that it is seeking a third-party investor or buyer.

It “expects to incur operating losses in 2009 as revenues continue to decline from the prior year in the current economic climate,” and its “sole source of capital is its working capital, which may not be sufficient to fund continuing operating losses and existing obligations,” the earnings release read.

Company representatives did not immediately respond to a request for comment.

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