Movie>Q Posts $1 Million Q3 Revenue

11 May, 2011 By: Erik Gruenwedel

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Production company Point.360 May 11 reported its automated Movie>Q rental and retail chain generated third-quarter (ended March 31) revenue of about $1 million. Disc rental revenue for the first nine months topped $1.7 million.

The Burbank, Calif.-based company launched the first two of three Movie>Q store locations last April in Westminster and La Mirada, respectively. A third location opened last summer in Costa Mesa, Calif. Movies and video games are rented for $1 per day and retail from $19.99 with a credit card and no required membership.

Point.360 does not break out operating income/loss for Movie>Q, which is headed by Joe Malugen, founder and former CEO of Movie Gallery.

In a statement, Point.360 said it opted for an automated inventory management system — versus kiosks — for the Movie>Q locations, which resulted in a $684,000 impairment charge.

Overall, Point.360 reported net income of $212,000 on revenue of $9.3 million, compared with a net loss of nearly $1.4 million on revenue of $9.5 million during the same period last year.

The company increased its credit line to $3 million from $1 million.

 

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