Loudeye Technologies (Nasdaq: LOUD) rose 2 U.S. cents to 82 cents in morning trading Wednesday after thecompany, which provides digital Internet audio and video content services,announced a restructuring that includes laying off 45 percent of its300-person workforce.
Loudeye said it will focus on “aggressively exploiting” its advanced digitalmusic archive and related distribution technology. In coming weeks, thecompany said, it will begin new initiatives that could include reducing oroutsourcing some “non-core” business operations.
The restructuring will result in a cash charge of about $2.5 million tosecond-quarter results, as well as a “substantial non-cash charge” forrelated asset writedowns. The plan, however, is designed to save about $12million per year.
“As the emerging market for digital music distribution begins to unfold,Loudeye is focused on developing sustainable, scalable revenue streams,”said chief executive officer John T. Baker. “I am confident that Loudeye,with the resources to move aggressively and opportunistically, is wellpositioned for success.”
Baker became president and chief executive officer last month, replacingDavid Bullis, who resigned.
Last week, Loudeye said it bought the online radio application technologyand some infrastructure assets of OnAir Streaming Networks of Irvine,California.
Loudeye went public in March 2000 at $16 per share, and soared to $40 in its first dayof trading. Last week, the shares sank to a 52-week low of 50 cents. Thecompany, based in Seattle, Washington, said it will consolidate its fouroffices there into its headquarters operations.