Atrinsic Reports Operating Results for the First Quarter 2009

New Motion, Inc., doing business as Atrinsic, a diversified online marketing services company, announced that revenues for the first quarter of 2009 were $23.5 million compared with $28.7 million in the first quarter of 2008, a decrease of 18 percent.

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In a release on May 12, the company noted that the decrease in revenue is principally attributed to a decline in the average number of subscribers as compared to the first quarter of 2008. For the three months ended March 31, Subscription revenues decreased by 60 percent and revenues from Transactional service offerings increased by 18 percent when compared to the first quarter of 2008. Notwithstanding the quarter-over-quarter decline in subscription revenues, the company is developing and launching new mobile products in the music, games, commerce, and lifestyle categories to support increasing demand for rich media mobile content services.

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Operating expenses for the first quarter of 2009 were $25.3 million compared with operating expenses of $29.4 million in the first quarter of 2008, a decrease of approximately $4.0 million. The decrease is primarily attributable to a reduced amount of purchased third party media, a reduction in labor and operating costs and efficiencies gained from the merger with Traffix, Inc. In addition, the company is carefully monitoring its performance relative to expectations and market conditions to manage its fixed and discretionary customer acquisition, lead generation activities, and other operating expenses.

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Net loss for the first quarter of 2009 was ($1.187) million (($0.06) per basic and diluted loss per share) compared with a net loss of ($267) thousand for the first quarter of 2008 (($0.01) per basic and diluted loss per share).

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As of March 31, the company had $22.9 million of cash, cash equivalents and marketable securities with significant working capital to support future growth, business development initiatives, and capital activities. Pursuant to its previously announced stock repurchase program, which ends May 2009, the company repurchased 832,392 shares of Common stock during the first quarter of 2009 at a cost of approximately $1.0 million.

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