Calgary’s RightsMarket Inc. has laid off nearly half its staff in an effort to cut costs.

The company, which is involved in digital publishing and content-control software, shed 17 jobs effective April 30, leaving a workforce of 18 and reducing its burn rate by more than $150,000 per month.

“The decision to reduce these positions was difficult. However, the market for digital publishing and content control software has been slower to develop than anticipated,” said Al Saurette, chief executive officer of RightsMarket.

“We have streamlined the company to continue operations for more than two years, and to preserve our ability to react to corporate opportunities.”

The company also announced last week that it had net losses of nearly $760,000 for the first quarter of 2001.

Gross revenue for the first three months ended March 31, 2001 was $131,385, compared to $38,796 for the same period in 2000. The increase was a result of consulting and license revenues of $74,682 for the first quarter 2001 compared to no consulting and license revenues in the first quarter 2000.

Development, administration and marketing-related expenses for the quarter totalled $890,572, however, resulting in a net loss for the period of $759,187 (three cents per share). This is compared to expenses of $332,192 for the first quarter 2000, and a net loss of one cent per share. The company completed the quarter with $4,002,445 million in cash and cash equivalents.

RightsMarket also announced that it has received conditional approval from the Canadian Venture Exchange to extend and reprice 3,300,000 warrants, which were due to expire April 28 at a price of $1.85. The new expiry date will be Jan. 28, 2002 and are exercisable at a price of $0.50 per share.

RightsMarket has more than 20 hosting agreements in place for customers currently using RightsPublish technology. Customers include the Canadian Broadcasting Corporation and Publications Unbound.

The company is in testing stage of RightsPublish Version 2.1. It says that the most notable achievement of this product is its ability to support membership and subscription models, which is of value in the association market; and for content providers, such as financial institutions, that have defined user communities.

Web Watch:
www.rightsmarket.com