In a quarterly report filed with the Securities and Exchange Commission, Music said it has been reporting profits for three consecutive quarters with year to date net income of P61 million compared with the P539-million net loss incurred the previous level.
The company attributed the positive results to lower expenses and effective cost-cutting measures implemented by management.
Consolidated revenues went up eight percent to P53.71 million from P50.47 million. Gross profit also increased to P41.55 million from only P17.16 million while expenses dropped to P26.94 million from P174.4 million.
During the third quarter, the company’s subsidiary, Music Semiconductors Philippines Inc., the manufacturing arm of Music Corp., cut down its workforce in Canlubang plant from 56 employees to only 28 as the company foresees no major increase in its sales revenue due to the continued slump in the industry.
To further enhance its profitability, Music said it will reduce its monthly overhead costs for the succeeding months.
As of end-September, the company has a balance of P96 million compared to P40 million as of Dec. 31 last year due to improved operations and the sale of certain assets to Micron.
As a result of the sale, assets declined from P178 million to P32 million.
Net inventory, on the other hand, declined by P23 million during the first three quarters of 2002 due to the continued sale of binary CAMs in the market place.
Music.com, the New York-based music web portal subsidiary of Music will be winding down its operations and disposing off its assets due to tight liquidity problems. Incorporated in 1998, Music.com was positioned to become the premier worldwide music web address.
With properties spanning North America, Europe and Asia, the company was rapidly becoming "the music network" for industry professionals and fans worldwide, offering local community music information, content and services.
But the proliferation of other music websites took its toll on Music.com operations as these competitor companies set out more affordable (even free) access and more innovative concepts that drew bigger audiences to their sites. Among the best-known music portals include Napster, Amazon.com, MTV and Soundbuzz.com – Zinnia dela Peña