Genius Seeks Filing Delay10 Nov, 2008 By: Erik Gruenwedel
Genius Products, the fiscally challenged DVD distributor 70% owned by The Weinstein Co., Nov. 10 said it had requested a third-quarter (ended Sept. 30) filing extension with the Securities and Exchange Commission.
Santa Monica, Calif.-based Genius, however, said it would announce the quarterly results Nov. 17.
The company last month said it would restate consolidated financial statements for six quarters and two fiscal-year periods.
Genius said the restatements for the quarters ended Sept. 30, 2006; March 31, June 30 and Sept. 30, 2007; March 31 and June 30, 2008; and fiscal years ended Dec. 31, 2006 and 2007, relate to financial accounting of costs associated with subsidiary DVD distributor Genius Products LLC.
Heretofore, Genius limited recognition of costs to its 30% stake, excluding possible cost overruns with The Weinstein’s stake, according to Anne Rakunas with financial consulting firm ICR, which handles Genius.
“Just because Genius has 30% ownership of the LLC doesn’t mean its costs are limited to 30%,” Rakunas said last month. “It’s safe to say it is going to be something different than what they [stated] before.”
Genius, in the second quarter, reported a 33% decline in DVD revenue to $74.6 million and a loss of $11.7 million due to a 49% drop in box-office revenue for The Weinstein Co. releases The Great Debaters, Diary of the Dead and Cassandra's Dream.