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Cinedigm Narrows Q2 Loss Significantly

14 Nov, 2016 By: Erik Gruenwedel

Cinedigm Nov. 14 reported a second-quarter (ended Sept. 30) loss of $557,000, which marked a 98% improvement from a loss of $22.4 million during the previous-year period. Revenue dropped 14% to $23.8 million.

The independent home entertainment distributor continues to put significant resources into over-the-top video, including proprietary subscription services Dove Channel, CONtv and Docurama.

The three channels currently have about 3.1 million app downloads, 570,000 registered users and approximately 76,000 active subscribers.

“Given our unique capabilities and assets, including our library of over 58,000 films and TV episodes, our vast experience in processing and delivering digital content, our long-term relationships with all the major digital players and, importantly, our strong management team that has a proven track record of developing and servicing new digital opportunities, we believe there is tremendous upside potential in this area,” CEO Chris McGurk said in a statement.

At the same time, Cinedigm continues reassure investors by staying on track to achieve more than $9 million in operating cost savings. Last month, the company sold $2.5 million in loans, in addition to 245,000 shares of common stock. The shares were sold to individual investors, including board members Ronald Chez and McGurk.

Last spring, Cinedigm announced a 1-for-10 reverse stock split in order to bring its share price in compliance with the Securities Exchange Commission.

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