In a conference call with analysts Wednesday, the temporary head of Playboy Enterprises said he was open to ideas of a sale or reorganization following $145.7 million fourth quarter loss suffered by Playboy.

Playboy interim chief executive Jerome Kern explained the Q4 loss to $146.4 million non-cash charges the firm took to write down television properties acquired by Playboy in the late 1990s. Compared to the same period in 2007, the enterprise reported a 2007 Q4 loss of only $1.1 million.

Kern insisted the fourth quarter loss does not reflect Playboy's potential as a unique and popular brand. To cope with the financial loss, Kern said Playboy will continue with cost cutting measures including reduction of its manpower to 714 as of December.

He said the licensing business of the company will continue to be its long-term growth engine despite the cutback in consumer spending which has also affected its fourth quarter results. The company's licensing revenue dipped to $4.3 million for Q4, down from $6.9 million in 2007.

Playboy is still on an expansion mode with the Playboy Mansion Macau set to be completed in 2010, while it inked recently two entertainment venue agreements. But its magazine is shrinking in circulation due to the competition offered freely on the Internet.