In an effort to curb the rapid depletion of its capital, New York-based Musicmaker.com Inc., a company that enables custom CD compilation and digital downloads, slashed its full-time staffing by 30 percent Thursday and reduced its cash burn to about $10 to $12 million annually.
In its latest quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC), Musicmaker.com reported that its cash and cash equivalents amounted to about $35.7 million. The company anticipates that number will be $31.2 million as of Sept. 30th.
The company said that strong marketing, engineering and customer service and fulfillment staffs will be maintained in the face of the reorganization. It also said it will use the reorganization as an opportunity to focus its advertising and promotional activities on its content strength: the classical, jazz, Christian and Latin music genres.
“This was not an easy decision,” said Raju Puthukarai, Musicmaker.com’s president, chairman and chief executive officer. “We value our employees and the contributions they have made. However, we believe that it is in the best interests of our shareholders that we engage in this restructuring.”
Musicmaker.com stock hit a 52-week low of 3/8 Thursday from a 52-week high of 18 1/16. It opened at 13/32 on Thursday and was trading at 9/16 by market close.