Loudeye: Six months to live?

Loudeye — that webcasting/encoding company with the impenetrably odd name — has announced their third-quarter 2002 results.

Actual net loss for the year so far is $20.0 million, compared to their “pro forma” (Latin for “press release”) loss of $17.0 million. For the first nine months of last year, actual net loss was $49.2, compared to their pro forma net loss of $22.6 million. It’s nice to see their pro forma results align their with actual results so far this year, but one has to wonder what the hell was going on there last year.

Note that companies can prepare their 10Qs only one way — in accordance with Generally Accepted Accounting Principles (GAAP). Pro forma numbers are not in accordance with GAAP, but regulators can’t stop companies from using them in press releases.

Loudeye has $20.0 million in cash and short-term investments. Their actual net loss for the year so far has been $20.0 million. Hrmmm. Link