Genius Revenue Increases Despite Q1 Loss15 May, 2006 By: Erik Gruenwedel
Ambitious growth resulted in an elevated fiscal 2006 first-quarter (ended March 31) loss of $5.7 million, underscoring Genius Products' pains to become a major DVD distributor.
Solana Beach, Calif.-based Genius, which is 70% owned in an interim agreement by Miramax co-founders Bob and Harvey Weinstein, posted revenue of $37.4 million, compared to $2.7 million during the same period last year.
Genius cited costs related to the Weinstein deal, regulatory issues and discontinuation of its theatrical releasing division for exceeding a loss that would have been $3.4 million. The distributor recorded a first quarter 2005 net loss of $2.2 million.
Genius said it generated more than 50% of net revenues from major retailers Wal-Mart, Best Buy, Blockbuster and Target.
The company expects significant results from recently released DVDs Wolf Creek, Mrs. Henderson Presents, Hoodwinked and Derailed, which was released March 21.
Genius is scheduled to street later this year Transamerica (with Golden Globe winner Felicity Huffman), The Matador and Scary Movie 4.
“Based on the momentum we have achieved in the first quarter, we expect to generate gross revenue of $70 million in the second quarter and plan on providing additional guidance after the closing of our transaction with TWC,” said Trevor Drinkwater, president and CEO of Genius, in a statement.