A21 narrows loss in 1Q07
According to a press-release issued by the A21 Group on May 15, the company posted a loss of $962K in the first quarter of 2007, an improvement over the $2MM loss the company suffered in the same period a year earlier. Comparison of the quarterly numbers reveals that the newly acquired consumer product division (ArtSelect) carries a relatively high Cost of Goods Sold of 47% of divisional revenue compared to only 30% in the image licensing division. Nonetheless, the company’s Selling, General and Administrative expenses dropped dramatically as a percentage of overall revenue from 96% in 1Q06 (before the ArtSelect acquisition) to only 60% of revenue in 1Q07. This implies ArtSelect, apart from doubling the company’s revenue, is much cheaper to operate and has had a positive effect on profitability.
Total revenue for the first quarter of 2007 came in at $6.1MM with $3.2 from image licensing and $2.9MM from product revenue. Image licensing revenue grew by 8% from the year-earlier period. Compared to the fourth quarter of ’06, however, 1Q07 image licensing grew by 4.5% while product revenue declined sequentially by 9% from $3.3MM in 4Q06, we suspect due to seasonally stronger sales for the product division during the holidays. The overall result was a 2.5% drop in total revenue from 4Q06 to 1Q07.
Click here to view the original press release.
Comments
Post a Comment