NEW YORK: Medialink reported a $30.6% drop in revenues for the first six months of this year, from $9.7 million to $6.7 million. Its net loss for the first half of the year was $1.4 million; $1.3 million from continuing operations and $109,000 from the discontinued Medialink UK operations.
For its second quarter, which ended June 30, 2009, the company reported net income of $48,000 on revenues of $3.6 million, representing an almost 27% year-over-year decline in revenues. Results were in line with the company's expectations, it said in the earnings release.
Medialink had cash and working capital totaling $2.1 million and $880,000 respectively as of June 30, and expects to incur further operating losses given the economic climate. The broadcast PR firm is forecasting a $1 million decline in revenues, year-over-year, in Q3 2009.
The NewsMarket announced plans to acquire Medialink on July 1, 2009. Medialink will hold a special meeting in September for stockholder approval. According to the earnings release, “There can be no assurance that the merger will be consummated.” However, Medialink's board of directors has unanimously approved the deal.
“As we previously announced, we continue to move forward with the merger with The NewsMarket and filed out preliminary proxy statement with the SEC [Securities and Exchange Commission] on July 28,” said Kenneth Torosian, CFO of Medialink in the statement. He goes on to say that the company anticipates “filing and mailing a definitive proxy statement soon.”
Medialink did not immediately return a call seeking comment.