Liquid Audio shareholder calls for sale
A dissident shareholder on Wednesday called on officers of Liquid Audio to sell the online music company after it posted a staggering drop in revenue two weeks ago. "If the company truly has valuable technology, prove us wrong and sell it immediately to the highest bidder and distribute all of the cash to shareholders," Josh Schechter of Steel Partners II, which owns about 9 percent of Liquid Audio, wrote in a letter to Liquid Audio's board. Schechter dissected the company's financial results, saying that based on its $135,000 of revenue in the first quarter, Liquid Audio's 100 employees each pulled in only $15 a day. The company narrowed its net loss in the first quarter to $4.9 million from $11.3 million in the year-ago period as revenues fell 92 percent from $1.7 million in first quarter of 2001. A group of shareholders that includes Musicmaker.com is seeking to eliminate Liquid Audio's takeover defenses, according to a proxy filing with the U.S. Securities and Exchange Commission. Story Copyright © 2002 Reuters Limited. All rights reserved.
Schechter dissected the company's financial results, saying that based on its $135,000 of revenue in the first quarter, Liquid Audio's 100 employees each pulled in only $15 a day. The company narrowed its net loss in the first quarter to $4.9 million from $11.3 million in the year-ago period as revenues fell 92 percent from $1.7 million in first quarter of 2001. A group of shareholders that includes Musicmaker.com is seeking to eliminate Liquid Audio's takeover defenses, according to a proxy filing with the U.S. Securities and Exchange Commission.
Story Copyright © 2002 Reuters Limited. All rights reserved.