NEW YORK: Medialink reported third quarter revenues of $5.3 million for the three months ending September 30, a 28.4% decrease compared to the same quarter in 2007.
Revenues for the US-based media communications service business increased $90,000 or 1.8%. However, the company reported a net loss of just under $1 million for the quarter, compared to a $1.6 million loss in Q3 2007.
On the earnings conference call this morning, president and CEO Laurence Moskowitz acknowledged the challenges posed by the economic recession, but emphasized the company's “back-to-basics” plan focusing on video.
“We're leveraging our strong blue chip client base that continues to be loyal and continues to be active,” said Moskowitz. “We are focusing on improving, refining, and expanding our line of services, particularly video on the Internet. We're seeing the numbers reported in advertising and PR, but historically PR has done well in slow periods. Video on the Internet continues to provide opportunities and channels for us.”
Revenues for the nine months ended September 30 decreased 23.7% to $16.9 million compared to $22.2 million in the same 2007 period. Year-to-date, Medialink has reported a net loss of $11.6 million.
On August 29, Medialink transferred ownership of its Teletrax business to Koninklijke Philips Electronics and its affiliates; on October 1, the company sold its UK client list to World Television Group. Revenues for the UK-based business decreased $2.2 million as a result of the winding down of that business. Teletrax has been reclassified as a discontinued operation.
When asked about the company's prospects for remaining an independent and listed company, Medialink's CFO Kenneth Torosian was also confident. Medialink's stock has sunk to 12 cents and the company previously received a notice from the Nasdaq stating the company could be delisted if its stock remained below $1 beyond a grace period that was to expire in February. However, the Nasdaq submitted a filing with the Securities and Exchange Commission last month that suspended the bid price rule until January 16 if all other market rules were followed, which extended Medialink's grace period until May.
“In terms of us remaining listed, I don't think there's an issue there,” said Torosian.