By : Erik Gruenwedel | Posted: 11 Feb 2010
Default loan payments, delisting by The Nasdaq Stock Market, and wary vendors and retailers contributed to Image Entertainment Feb. 11 reporting a third-quarter (ended Dec. 31, 2009) net loss of $2 million, compared to net income of $304,000 during the previous-year period.
The Chatsworth, Calif.-based distributor said revenue plunged nearly 36% to $25.1 million from $39 million last year, due to a weaker release slate, the ongoing economic recession and worries about Image’s ability to continue as a going concern, among other issues.
DVD revenue decreased 38.6% to $19,718,000, from $32,125,000 for the three months ended December 31, 2008. Blu-ray Disc revenue fell nearly 8% to $3.1 million from $3.4 million last year.
Best-selling DVD releases for the quarter included The Other Man, American Violet, Wings of Desire and Gomorrah.
The lone bright spot was digital distribution revenue increased 34% to $1.3 million from $976,000 during the same period last year.
Image, which five years ago turned down a $93 million acquisition offer from Lionsgate, started 2010 with its stock worth pennies.
On Jan. 8, it closed a $22 million preferred stock deal with JH Partners LLC, which subsequently assumed control of Image and named industry veteran Ted Green CEO, among other executive changes.
“Now that the transaction with JH Partners has closed, we are working to increase content acquisition activity and streamline processes that will help us in our goal to return to profitability,” said John Avagliano, newly hired COO and CFO.