ArtistDirect to Restate Earnings

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ArtistDirect Inc. said Wednesday that it intends to amend its previously filed consolidated financial statements for the year 2005, as well as for three quarters of 2006.


The Santa Monica-based digital entertainment media company said the changes stem primarily from the value of derivatives associated with warrants and $30 million of subordinated convertible notes issued in conjunction with its acquisition of MediaDefender in 2005.


The changes, which the company said came after consultations with the Securities and Exchange Commission, are non-cash in nature but are expected to lower its previously stated earnings per share figures, among other financial metrics.

ArtisitDirect said it expects to file the amended financial statements during the first quarter of 2007. Shares in ArtistDirect were up 3 cents to $2.45.

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