MetaCreations has reported expected losses for its fourth-quarter and full-year financial results.
MetaCreations announced in December that it would report a loss in the fourth quarter, after divesting its graphics software business to concentrate on "e-commerce visualization solutions".
The results show a net loss of $39.5 million, or $1.59 per share, compared to a net loss of $3.7 million for the fourth quarter of 1998. The loss also includes a $2.1 million non-cash charge from the issuance of employee stock-options in the company's subsidiary, MetaStream.com.
Meanwhile, MetaCreations is "in negotiations with several potential buyers" for the graphics software business, and expects to announce a transaction before the end of the quarter. Mark Zimmer, MetaCreations' president and CEO said: "We are moving swiftly to divest the company of all prepackaged software products, and I'm pleased that the restructuring effort has been executed on plan."
The company said that its balance sheet, remained strong at December 31 1999, with cash and investments of $37.3 million. Licensing and services revenues from the e-commerce segment of MetaCreations' business were $10.2 million for 1999, compared to $3.0 million in 1998 - a growth of 239 per cent.
However, for the fourth quarter of 1999, revenues for its e-commerce business were $187,000 - lower than previous quarters. This was due to the company's decision to change its MetaStream licensing model - instead of focusing on one-time licenses from strategic partners, the company is concentrating on a recurring broadcast licensing model.