Full Press Release Details
Unassociated Document ATRINSIC, INC., #4295989 Atrinsic, Inc. Conference Call May 11, 2010, 11:00 AM ET Chairperson: Landon Barretto Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Atrinsic first quarter 2010 earnings conference call. At this time, all parties are in a listen-only mode. At the conclusion of the presentation, instructions will be given for a question and answer session. If you require assistance at any time, please press the *, followed by the 0. If you are using speaker equipment, you may need to lift the handset before pressing the numbers. The call today is being recorded, and will be accessible through the end of July 11, 2010. With me today are Jeffrey Schwartz, Atrinsic's Chief Executive Officer, and Thomas Plotts, currently the Company's Interim Chief Financial Officer. Mr. Schwartz and Mr. Plotts are going to discuss the Company's financial results for the first quarter ended March 31, 2010. In compliance with SEC requirements, I must read the following statement. Except for historical information, the matters discussed in the conference call are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The factors that could cause results to differ materially are included in the Company's filings with the Securities and Exchange Commission. Forward-looking statements made during today's call are only made as of the date of this conference call, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Gentlemen, please proceed. Jeffrey Schwartz: Thank you, Mitch, and welcome to the Company's first quarter conference call. I've been CEO of the Company now since February. I'm starting to settle in, and to better understand where our market opportunity lies, and the work that needs to be done to position our products and services for success. My objective is to narrow the focus of the Company and add by subtracting. To that point, over the last 90 days, we've come a long way in narrowing the list of things we are focused on to get the Company back on a growth footing. Page 1 Let me lay the groundwork for you in terms of the status of our management team and overall operations. As you know, the Company has made changes at the CEO, CMO, CFO and CTO positions. Tom Plotts has stepped in at the CFO position, and Kevin Vye is now leading our Technology organization. Both are making a terrific contribution in their new roles. In terms of operations, we are focused on a limited number of high impact activities. We believe that Atrinsic can be a leading provider of direct-to-consumer entertainment and lifestyle digital subscription products. We are organizing the business operations and product initiatives around that objective. Let me give you a brief update of our progress during the first quarter. First, I'm pleased to announce to you today that we have achieved a 100,000 paid subscriber milestone on the Kazaa music service. This has been a focus of the business over the last couple of quarters, and we are making steady progress. Our customer acquisition trajectory continues to be on pace. We are steadily adding subscriber benefits, and our product initiatives are developing as planned. As a reminder, Kazaa is a music service that the Company jointly operates in a 50/50 profit share arrangement with Brilliant Digital Entertainment. Let me briefly discuss our approach to the music market in more detail. We are attacking this market because we like its size and growth characteristics. Today, the global recording music industry is a $17 billion market, and about 25% of that, or around $3.5 billion, is digital music. While the overall market has decreased over the past ten years, the digital music business is growing at double digits annually, making it an attractive and expanding m