Cinram Q1 Takes Small Dip7 May, 2007 By: Jessica Wolf
Canadian-based replicator Cinram International Income fund reported a 9% jump in DVD unit volume for the first quarter of the year.
Everything else in the company's quarterly report was down slightly. Net earnings for the quarter decreased to $7.2 million, from $8 million for the first quarter of 2006. Cinram's Q1 revenue dipped slightly to $443.9 million, from $447.8 in 2006.
“First-quarter DVD unit volumes were in line with our expectations and were indicative of our customers' healthy release schedules and the overall strength of the market for DVDs,” said Cinram chief executive officer Dave Rubenstein. “First-quarter DVD unit volumes were up 9% over 2006; however, the positive impact of this increase was offset by lower prices, a decline in our printing business and lower CD volume during the period.”
On April 30, 2007, Cinram substantially acquired all of the assets of Ditan Corporation, the leading third-party interactive software and games distribution company in the United States, for $50 million in cash plus additional cash consideration upon the achievement of certain future performance metrics. According to the company, the Ditan acquisition provides Cinram with a strategic entry point into the growing video game market as well as the opportunity to take advantage of a number of synergies in manufacturing and distribution.
“We are aggressively moving forward with our plans to leverage our core competencies and continue to pursue strategic initiatives that will be accretive to our unit holders and which will ensure the long-term growth of our company,” Rubenstein said.