Medialink Q2 revenues drop 15.4%, sells Teletrax

NEW YORK: Medialink Worldwide, which has endured management changes and bottoming stock prices in the past three months, posted continued losses in its second quarter.

NEW YORK: Medialink Worldwide, which has endured management changes and bottoming stock prices in the past three months, posted continued losses in its second quarter.

It reported a net income loss of $8 million on revenues of $7 million for the second quarter, which ended June 30, a 15.4% decrease from $8.3 million in revenues during the same period last year. Earnings from its media communications services decreased during this quarter by $1.9 million, or 24.5% from the year ago period.

The company also said today that it will sell its Teletrax service to Koninklijke Philips Electronics and parts of its UK-based media communications services to World Television Group.
 

"This is a very difficult time for Medialink as a company and, obviously, for our various units," Laurence Moskowitz, company chairman and CEO, said during the conference call today. "We saw that the requirements for continued investment [in Teletrax] and the resources necessary from a technical and financial standpoint were a stretch for us to bear. This is an opportunity to focus our resources on what we know best."

After the conference call, Moskowitz spoke with PRWeek and emphasized the company's capabilities.

"Video has become the dominant medium of the era," he said. "We advise, we consult, we create, we produce, we distribute, we track, and that's exactly where we want to be."

Year to date, the company has earned $14.1 million in revenues, a 13.3% decrease from its 2007 half-year figures, when it collected earnings of $16.3 million. Revenues for its media communications services decreased by $3.2 million, or 21.3% during the first half. For the first six months of 2008, the company saw an operating loss of $10.5 million, including impairment charges of $2.4 million related to long-lived assets.

Medialink first saw its stock price drop below one dollar in mid-May. Also in May, two staffers exited: Michelle Wallace, former SVP of client services, and Mary Buhay, former SVP of corporate communications, left Medialink on May 16. The company's stock closed at 65 cents on August 13.



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