Full Press Release Details
Quarter 2009 Earnings Conference Call
Ladies and gentlemen, welcome to the Atrinsic, Inc.
Third Quarter 2009 Earnings conference call on the 11th of November,
2009. Throughout today's presentation, all participants will be in a
listen-only mode. After the presentation, there will be an
opportunity to ask questions. If any participants have difficulty
hearing the presentation, please press the star followed by the zero on your
telephone for operator assistance.
now hand the conference over to Sam Recenello. Please go
morning and welcome to the Atrinsic conference call to discuss the company's
third quarter 2009 financial results. All participants have been
placed on a listen-only mode and the floor will be open for questions and
comments following the presentation.
I would like to point out the during
the course of the conference call, there may be statements made relating to
future results of the company that are forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. Actual results,
performance, or achievements could differ materially from those anticipated in
such forward-looking statements as a result of certain factors, including those
set forth in the company's filings with the Securities and Exchange
It should also be noted that the
webcast of today's conference call may be found on the Internet by visiting the
Atrinsic corporate website at www.atrinsic.com and
then selecting Investor Relations at the top of the webpage, and then clicking
on Events and Presentations. Also on that website, you will find a
link to the news release we issued to announce the company's third quarter 2009
financial results and webcast. An archived version of the webcast
will shortly be accessible from our Investor Relations site and will be
available for at least the next 12 months pursuant to SEC
Joining me on the call today is
Jeffrey Schwartz, now Interim Chief Executive Officer of Atrinsic, and Andrew
Zaref, the company's Chief Financial Officer.
Now, I would like to turn the call
over to Mr. Zaref. Mr. Schwartz, I'm sorry.
you, Sam, and welcome to our third quarter conference call. My name
is Jeffrey Schwartz and I'm the Interim CEO of Atrinsic.
As you know, there have been a number
of changes at the company over the past six months. Burton Katz, our
former CEO, has exited the business. I've been asked to step in as
Interim CEO to move the business forward during this period of
transition. I've been on the Atrinsic Board of Directors since
November of 2008 serving in the role as Chairman of the Audit
Committee. I've taken on this new assignment with enthusiasm,
respectful of the many assets of the company, including an employee base that is
passionate about our work and committed to the success of the
company. However, I am also well aware that our business faces some
very real challenges. These are represented in the financial results
we are reporting to you today.
Briefly, by way of background, I come
to Atrinsic with a decade of performance marketing experience. I was
educated at the University of Southern California where I received my
Bachelor's, Master's, and Doctorate, and went on to begin my career at the Walt
Disney Company. I was CEO of Autoweb and Autobytel, both
NASDAQ-listed companies, and I've been active in a number of performance
marketing and web publishing businesses since that time. I currently
sit on the Board of US Auto Parts, a leading automotive e-commerce
The financial and operating results we
are reporting today are not acceptable and we are committed to getting the
company back on track. In terms of orientation, I'm a firm believer
that the starting point is focus, that attention is forceful in proportion to
the narrowness of its focus. For Atrinsic, this means addition by
subtraction; getting the business down to the core set of things that we can do
better than any other company and using that as the firm basis from which to
expand. In the six weeks that I've been here, this process has begun
in earnest and we are beginning to see the early signs of progress.
As a company, we are focused on a
limited number of tasks, all of which represent rebuilding and nurturing core
assets of the company. Let me give you the three areas which are the
subject of management focus. We intend to have operational excellence
in these areas and will ask you to measure our progress, in part, by how we
achieve success here.
First, Atrinsic will regain market
leadership in the area of lead generation. Dating back, the assets
inside of Atrinsic were responsible for industry leadership in terms of lead
volumes and lead values. While this is no longer the case today, many
of the underlying assets and competencies remain inside of the
business. We need management focus and innovation to regain market
leadership. We have to rekindle the creativity and entrepreneurialism
inside the organization that is emblematic of a company that delivers the
highest quality performance marketing products to its advertisers. We
are focused on regaining this position of prominence and feel confident that we
can do this in the coming quarters. Last week, the ad:tech conference
was in New York. We had the opportunity to meet with many of our
partners to discuss our plans to ramp our lead-gen and product marketing
capabilities. Our plans have been greeted with enthusiasm and I
believe that we can leverage many of these relationships in the coming
quarters. There are early signs of recovery in Internet marketing and
we are having many productive discussions with advertisers about working with
Second, as you know, our mobile and
LEC tel products serve as an important source of monetization of our own
and third-party media. We should be the largest advertiser inside of
our own network and we should build the market products that delight
consumers. We are committed to developing industry-leading products,
not just in the mobile and LEC tel areas, but in the larger categories
of lead generation and performance marketing. We believe that we own,
can create, and can cost efficiently buy media that delivers significant value
to advertisers. Performance marketing is a growing advertising
category on the Internet and we will regain leadership in this
Lastly, we are focused on and
committed to enhancing our own media properties. Thankfully, we have