Cinram Posts Loss Despite Surge in HD Replication7 May, 2008 By: Erik Gruenwedel
Cinram International Income Fund reported $4.3 million in high-definition replication revenue for the first quarter fiscal 2008 (ended March 31), compared to $1.9 million during the prior-year period.
The Toronto-based replication company included both HD DVD and Blu-ray in the high-def revenue.
DVD replication revenue dropped nearly 26% to $180 million, from $242 million last year, due largely to lower volumes and prices.
The company replicated 262 million DVDs in the period, down 14% from 305 million units in fiscal 2007.
CEO David Rubenstein said the quarterly results were in line with expectations.
“The decline in our first quarter [earnings before depreciation and amortization], compared to the first quarter of 2007, is not indicative of our outlook for the full year given that we were up against an unusually strong comparable period,” Rubenstein said.
Home video represented 61% of Cinram's revenue, compared to 69% during the prior-year period. Some of the slack was taken by video game replication, which generated nearly $22 million and 5% of total revenue.
The company, which only acquired game disc replication business Ditan a year ago, did not replicate any video game discs during the same period last year.
Overall, revenue topped $406 million, down nearly 9% from $444 million last year.
Cinram holds its annual shareholder meeting May 12.