NEW YORK: Medialink Worldwide has warned that its third-quarter
results, to be announced prior to the opening of regular trading on
November 6, will be below previous guidance.
The company's pre-September 11 guidance called for expected revenues in
the range of $12 million to $12.5 million, and a net loss
per share in the range of $0.08 to $0.10. Now, however,
Medialink has announced that it expects a loss of up to 25 cents a
Medialink said it expected its fortunes to improve when television and
radio newscasts return to more general news coverage. It also pledged to
react to the reduction in business travel by aggressively marketing its
videoconferencing and webcasting services.
To cut costs, the company had had what Ryan Barr, Medialink IR director,
called "a modest staff reduction." The company has also leased out
excess office space.
Medialink will also take third-quarter charges of approximately $550,000 to cover a one-time charge related to restructuring activities,
and the cost of hiring advisors. Medialink has hired UBS Warburg LLC as
its financial advisor to a takeover offer by United Business Media,
parent company of PR Newswire.
Medialink shares have fallen and risen since September 11, trading at
$3.89 as of October 8.