Image Lowers Annual Guidance17 Jan, 2006 By: Erik Gruenwedel
Image Entertainment has announced it would restate its fiscal 2006 guidance range (ending March 31) from $115 to $120 million to $112 to $117 million. The Chatsworth, Calif.-based distributor said the rescheduling of two exclusive DVD releases and last week's Chapter 11 bankruptcy filing by Musicland Holding Corp. attributed to the change.
Image said it would raise its fiscal third-quarter (ended Dec. 31) revenue guidance range from $33 to $35 million to $36 to $38 million. The distributor cited strong holiday season DVD sales for the upgrade.
That said, Image expects to take a third quarter charge of about $2.6 million in outstanding trade receivable from Musicland. The Minneapolis-based retailer represents about 5 percent of Image's net revenues. Image doesn't believe Musicland's financial reorganization would have a long-term impact on its revenues.