SoftLock Moves Stock Listing to Nasdaq

Jim Milliot |

Oct 02, 2000

News
SoftLock Moves Stock Listing to Nasdaq Jim Milliot -- 10/2/00 SoftLock.com, which offers a security system for digital content, began trading on the Nasdaq SmallCap Market September 14, where its stock price closed at $6 per share. The company's stock had been trading on the over-the-counter market. Company chairman Scott Griffith said the move will improve the liquidity of the company's shares and "will increase the effective marketability of our stock to both institutional and individual investors." In 1999, SoftLock reported revenues of $83,790, down from $109,402 in 1998, while its operating loss increased to $6.5 million from $740,072. Through the end of 1999, SoftLock had an accumulated deficit of $8.7 million. Part of the higher loss was due to expenses associated with staff increases as the company added 20 new employees to close the year with 30 people. In documents filed with the Securities and Exchange Commission, SoftLock said it expects to incur significant operating losses through 2000 and into 2001. For the first six months of 2000, revenues rose 56.6% to $103,546 due in part to the May acquisition of the consulting firm Chili Pepper as well as higher revenues from eMerchandising, SoftLock's primary digital security product. The company notes that revenue growth was kept in check in the first half of the year because while its password vending service had higher volume, average unit commission was lower, especially during the company's involvement in the launch of Stephen King's Riding the Bullet e-book. SoftLock noted that while participating in the Bullet launch was a "unique opportunity," unexpectedly high volumes, particularly on the first day, made it impossible for the company to fulfill all requested orders, causing the company not to realize its full profitability on each unit. The company's net loss for the first half of 2000 was $6.7 million, compared to $2.4 million in the first six months of 1999.

News

SoftLock Moves Stock Listing to Nasdaq
Jim Milliot -- 10/2/00

SoftLock.com, which offers a security system for digital content, began trading on the Nasdaq SmallCap Market September 14, where its stock price closed at $6 per share. The company's stock had been trading on the over-the-counter market. Company chairman Scott Griffith said the move will improve the liquidity of the company's shares and "will increase the effective marketability of our stock to both institutional and individual investors."

In 1999, SoftLock reported revenues of $83,790, down from $109,402 in 1998, while its operating loss increased to $6.5 million from $740,072. Through the end of 1999, SoftLock had an accumulated deficit of $8.7 million. Part of the higher loss was due to expenses associated with staff increases as the company added 20 new employees to close the year with 30 people. In documents filed with the Securities and Exchange Commission, SoftLock said it expects to incur significant operating losses through 2000 and into 2001.

For the first six months of 2000, revenues rose 56.6% to $103,546 due in part to the May acquisition of the consulting firm Chili Pepper as well as higher revenues from eMerchandising, SoftLock's primary digital security product. The company notes that revenue growth was kept in check in the first half of the year because while its password vending service had higher volume, average unit commission was lower, especially during the company's involvement in the launch of Stephen King's Riding the Bullet e-book. SoftLock noted that while participating in the Bullet launch was a "unique opportunity," unexpectedly high volumes, particularly on the first day, made it impossible for the company to fulfill all requested orders, causing the company not to realize its full profitability on each unit. The company's net loss for the first half of 2000 was $6.7 million, compared to $2.4 million in the first six months of 1999.

A version of this article appeared in the 10/02/2000 issue of Publishers Weekly under the headline: