The Orchard Enterprises Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the third quarter of 2009, the company's revenues were $15.2 million, compared to $14.6 million for the third quarter of 2008. The net loss for the third quarter of 2009 was $15.4 million or $2.47 per basic and dilute share as compared with a net loss of $0.59 million or $0.01 per basic and dilute share for the third quarter of 2008. Excluding the impact of the restructuring charges and non-cash charge for goodwill impairment, the third quarter non-GAAP net loss was $1.0 million or $0.15 per share. EBITDA for the third quarter of 2009 was $0.78 million compared with a $0.33 million for the third quarter of 2008. Loss from operations for the period was $15.4 million against $0.23 million for same period a year ago. For the nine months, the company reported the net cash provided by operating activities was $1.33 million as compared to the net cash provided by operating activities of $0.36 million for the same period a year ago. The company reported the impairment charges for the third quarter of 2009. The company reported impairment of goodwill of $14.11 million.

The Orchard Enterprises Inc. reported that on November 12, 2009, it received notice from NASDAQ stating that the market value of publicly held shares of The Orchard�s common stock were below $5.0 million for 30 consecutive business days and The Orchard was therefore not in compliance with the minimum MVPHS requirement for continued listing on The NASDAQ Global Market under Listing Rule 5450(b)(1)(C). The rule provides The Orchard with a 90-day grace period until February 10, 2010 to regain compliance. The Orchard can regain compliance if The Orchard�s MVPHS at market close is $5.0 million or more for a minimum of ten consecutive business days. If compliance is not regained by February 10, 2010, NASDAQ will notify The Orchard of its determination to delist The Orchard�s common stock, which decision may be appealed to a NASDAQ Hearings Panel. Alternatively, The Orchard may apply to transfer its common stock listing to The NASDAQ Capital Market, provided it satisfies the requirements for continued listing on that market. Since approximately 49% of The Orchard�s common shares are not included in the NASDAQ MVPHS calculation, The Orchard�s MVPHS is determined on a limited number of shares increasing the difficulty in correcting the deficiency. The Orchard intends to maintain its listing on The NASDAQ Stock Market and will actively monitor the market value for its common stock between now and February 10, 2010 and will consider available options.

The Orchard Enterprises Inc., Q3 2009 Earnings Call, Nov-13-2009