Cinedigm Narrows Third-Quarter Loss13 Feb, 2013 By: Ashley Ratcliff
Cinedigm Digital Cinema Corp. Feb. 13 posted a third-quarter (ended Dec. 31) net loss of $1.8 million, compared with $10.7 million during the previous-year quarter. Revenue topped $23 million, up 17% from $19.8 million last year.
The increase in revenue was primarily due to the New Video acquisition, which closed last April, in addition to the company's recurring revenue of digital cinema servicing and software platforms.
Digital revenue increased 50% year-to-date versus the industry average of 28%.
Los Angeles-based CDC distributes independent movies and TV shows via 11,600 digital theatrical screens with 269 exhibition partners, DVD and Blu-ray Disc, electronic sellthrough, and transactional and subscription VOD. It installed 835 screens in the quarter.
The company’s content library features more than 18,943 movies and television episodes. Recent release The Invisible War, about rape in the military, is nominated for an Oscar in the Best Feature Documentary category at the Feb. 24 Academy Awards.
In the quarter, Cinedigm distributed 2,830 hours of film and TV content to more than 22 digital partners, including iTunes, Netflix, Vudu and Best Buy’s CinemaNow. It released two films theatrically in the quarter: Citadel and In Our Nature.
CEO Chris McGurk noted that an upcoming doc about the music group Journey would bypass theatrical for packaged media and digital distribution.
“We think that gives us the best chance to maximize revenue,” McGurk told analysts in a fiscal call. “For a movie like Arthur Newman, with Emily Blunt and Colin Firth, we think that’s a movie that deserves a traditional theatrical release.”
CDC just acquired the rights to The English Teacher, starring Julianne Moore and Greg Kinnear, which will bow this spring digitally on UltraViolet, with theatrical, DVD and broadcast to follow.
To help fund content acquisitions and operational expenses going forward, management said it will explore a refinancing deal on existing debt and credit revolvers.
McGurk said it is important having a flexible approach to distribution instead of acquiring titles and placing them in release windows with little regard to the target audience.
“Our strategy is putting forth the right releasing model that matches most properly with the dynamics of that movie,” he said.