Toast 5 Titanium maker
Roxio Inc. has announced its financial results for its third quarter, which ended December 31, 2001. The company reported net revenue of US$36.2 million, and a pro forma net income of $3.4 million.
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The company’s net revenue was higher for the same quarter year over year by $8.7 million, although its net income dropped $2.5 million for the same period.
Roxio president and CEO Chris Gorog qualified his company’s third quarter performance as “solid” and reflecting in strong retail sales growth. Strong demand for Roxio products coupled with the branding and advertising efforts and the launch of Windows XP all helped to contribute.
Highlights for the quarter included Roxio’s putting into motion the acquisition of all outstanding shares of MGI Software Corp., a consumer digital media software firm based in Ontario, Canada. The acquisition is set to be finalized later this month. Other highlights include the company’s partnership with Sony-backed digital music service Pressplay; the inclusion of Roxio’s CD recording technology with RealOne Player from RealNetworks; the establishment of an enterprise software team; and the inception of a multi-year license to use Gracenote CDDB as the exclusive CD recognition service supported by Roxio’s CD recording products.
“Concurrent with the licensing agreement, Gracenote and Roxio settled all litigation between the two companies in a sealed agreement,” said Roxio.
Roxio CFO Elliot Carpenter said the company posted stronger than expected revenues for the quarter because of high customer demand during the holidays. “We are reiterating our revenue guidance of $33.0 million for the fourth quarter, which when combined with our nine months’ performance, raises our previous year-end target to $136.6 million,” said Carpenter.