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IMAGE ENTERTAINMENT REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED SEPT. 30, 1992

 IMAGE ENTERTAINMENT REPORTS RESULTS FOR
 THE THREE AND SIX MONTHS ENDED SEPT. 30, 1992
 CHATSWORTH, Calif., Nov. 13 /PRNewswire/ -- Image Entertainment Inc. (NASDAQ: DISK), the largest licensee and distributor of programming on laserdisc in the United States, today reported results for the three and six months ended Sept. 30, 1992.
 Net sales for the three months ended Sept. 30, 1992 increased 32 percent to $16,935,961 from $12,835,223 for the three months ended Sept. 30, 1991. Net loss for the three months ended Sept. 30, 1992 was $622,884 or $.05 per share, compared to net loss of $199,109, or $.02 per share, for the three months ended Sept. 30, 1991.
 Net sales for the six months ended Sept. 30, 1992 increased 19 percent to $26,737,096 from $22,536,853 for the six months ended Sept. 30, 1991. Net loss for the six months ended Sept. 30, 1992 was $2,297,549, or $.20 per share, compared to net loss of $681,748, or $.06 per share, for the six months ended Sept. 30, 1991.
 Net sales for the three and six months ended Sept. 30, 1992 increased over net sales for the three and six months ended Sept. 30, 1991 principally because of significant growth in non-exclusive product sales. Net loss for the three and six months ended Sept. 30, 1992 increased over net loss for the three and six months ended Sept. 30, 1991 primarily as a result of a substantial increase in sales of lower-margin non-exclusive product and higher selling, general and administrative expenses. In addition, the company incurred increased interest and amortization because of its $20 million November 1991 financing.
 Martin W. Greenwald, Image's chairman and chief executive officer, stated, "I am pleased with the continued growth of both the laserdisc market and image. Although our six-month results were disappointing, I am genuinely pleased with the improvement in results for the second quarter vs. the first quarter. Revenues climbed significantly from $9.8 million for the first quarter to $16.9 million for the second quarter, a 73 percent increase. Although we reported a net loss for the second quarter, operating income was $86,000 for the quarter vs. an operating loss of $963,000 for the first quarter.
 "I expect that, as in prior years, revenues for the last six months of the fiscal year will exceed revenues for the first six months. The second half of the fiscal year should benefit from hardware and software sales relating to the Christmas season.
 "We have implemented a positive and aggressive business plan, adopting new measures to reduce operating expenses. In addition, we have appointed Wendy Moss, former senior vice president and general manager of Hanna-Barbera Home Video, to take charge of our sales and marketing activities. Lee Kasper, executive vice president of Image and the person who guided Image into the laserdisc market, is now concentrating on new business development, including promoting the domestic and foreign distribution of the company's recently introduced and fast-growing line of karaoke laserdiscs (karaoke is the sing-along format which has proved enormously popular in Japan and which is gaining popularity elsewhere).
 "We remain committed to the aggressive acquisition of a wide range of exclusive programming. We just finalized an exclusive distribution agreement with The Voyager Co. Voyager produces the Criterion Collection, an exceptional product line of specialized laserdiscs. The Voyager deal should contribute significantly to our revenue stream beginning in the fourth quarter and solidify our position as the market leader."
 Image Entertainment has an estimated 35 percent share of the domestic laserdisc software market and the most extensive library of titles. In addition, Image has exclusive licensing and distribution agreements with some of the most important suppliers of movies, music videos and specialty programming, including Disney's Buena Vista Home Video, FoxVideo, Playboy Home Video and Turner Home Video. The company's common stock trades on the NASDAQ National Market System (symbol: DISK).
 IMAGE ENTERTAINMENT INC.
 Statements of Operations
 (Unaudited)
 For the Three Months Ended Sept. 30, 1992 and 1991
 1992 1991
 Net sales $16,935,961 $12,835,223
 Operating costs and expenses:
 Cost of laserdisc sales 13,979,549 10,115,496
 Selling expenses 1,132,673 837,409
 General and administrative
 expenses 999,998 776,210
 Amortization of production costs 737,335 787,839
 Total 16,849,555 12,516,954
 Operating income 86,406 318,269
 Other expenses:
 Interest 630,381 414,065
 Amortization of deferred
 financing costs 78,909 ---
 Write-off of leasehold improvements --- 102,513
 Loss before income taxes (622,884) (198,309)
 Income taxes --- 800
 Net loss ($622,884) ($199,109)
 Net loss per share ($.05) ($.02)
 Weighted average shares
 outstanding used in calculating
 net loss per share 11,671,017 10,862,866
 IMAGE ENTERTAINMENT INC.
 Statements of Operations
 (Unaudited)
 For the Six Months Ended Sept. 30, 1992 and 1991
 1992 1991
 Net sales $26,737,096 $22,536,853
 Operating costs and expenses:
 Cost of laserdisc sales 22,036,549 17,440,876
 Selling expenses 2,126,366 1,611,663
 General and administrative
 expenses 2,008,442 1,694,182
 Amortization of production costs 1,442,485 1,529,787
 Total 27,613,842 22,276,508
 Operating income (loss) (876,746) 260,345
 Other expenses:
 Interest 1,262,987 838,780
 Amortization of deferred
 financing costs 157,816 ---
 Write-off of leasehold improvements --- 102,513
 Loss before income taxes ($2,297,549) ($680,948)
 Income taxes --- 800
 Net loss ($2,297,549) ($681,748)
 Net loss per share ($.20) ($.06)
 Weighted average shares
 outstanding used in calculating
 net loss per share 11,625,647 10,857,170
 -0- 11/13/92
 /CONTACT: Wendy Moss, media relations, 818-407-9100, ext. 214, or Cheryl Lee, investor relations, 818-407-9100, ext. 256, both of Image Entertainment/
 (DISK) CO: Image Entertainment Inc. ST: California IN: ENT SU: ERN


LS-JL -- LA011 -- 0536 11/13/92 09:01 EST
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