Genius Posts Q2 Loss Up 300 Percent22 Aug, 2005 By: Erik Gruenwedel
The acquisition of American Vantage Media (AVM) and its Wellspring catalog coupled with the write down of obsolete VHS product, among other costs, forced Genius Products to post a second-quarter 2005 (ended June 30) loss of $4.9 million, or 12 cents per share, compared to $1.2 million, or 5 cents per share, during the same period last year.
San Diego-based Genius, which saw net revenue increase 81 percent, to $3.8 million from $2.1 million last year, consolidated seven distribution centers to two and shrank its workforce 17 percent, saving $1.5 million, according to filings with the Securities and Exchange Commission.
Going forward, the company has received a $3 million receivable from a national retailer as part of a six-month distribution agreement and collected $800,000 as part of the AVM deal, according to CEO Trevor Drinkwater.
In related news, Genius announced a DVD and UMD distribution with BFC Berliner Film Companie Group of four children's animated television shows. The company recently signed similar deals with Universal NBC, New Line Home Entertainment and Sundance Channel Home Entertainment.
“We believe the future of the DVD business is extremely bright,” Drinkwater said. “We have plenty of opportunity for growth and sustained profitability.”