Image Narrows Q1 Loss, Revenue16 Aug, 2010 By: Erik Gruenwedel
Citing ongoing restructuring and cost-cutting measures, Image Entertainment Aug. 16 reported first quarter (ended June 30) loss of $41,000, compared with a loss of more than $3 million during the previous-year period.
Chatsworth, Calif.-based Image said a reduced theatrical slate and lingering recession contributed to 26.3% decline in revenue to $17.4 million, compared with $23.6 million in revenue last year.
Bestselling DVD releases for the quarter included Don McKay (starring Thomas Haden Church and Elisabeth Shue), Fallen (starring Paul Wesley, Tom Skerritt and Bryan Cranston) and Disgrace (starring John Malkovich).
Noteworthy benchmarks in the quarter included a 41.7% increase in Blu-ray Disc revenue, to $1.8 million from $1.3 million, offset by a nearly 40% decline in DVD revenue, to $11.5 million from $19.2 million last year. Digital revenue, including transactional video-on-demand (VOD), streaming and electronic sellthrough, increased 150% to $1.7 million from $670,000 last year.
“We believe we’ve made significant progress in a mere seven months,” said CEO Ted Green. “Our continued expansion into additional ancillary markets will position Image well against its competition.”
CFO/COO John Avagliano added he was pleased with the improvement in gross margin, which improved to 26.8%, compared with 20.2% last year.
Last week Image added industry veteran Mark Ward as VP of acquisitions, in adition to three board members.