PICTURE ROSY, SAYS IWERKS; COMPANY UPBEAT AS STOCK STRUGGLES.

Byline: Dave McNary Daily News Staff Writer

Iwerks Entertainment, the troubled motion-simulator and giant-screen specialist, issued a bullish review of operations Tuesday as its stock continued to trade at an all-time low.

Iwerks, which has been mired in red ink in recent quarters and cut its work force from 151 to 118 earlier this year, announced children's TV producer Saban Entertainment will extend its sponsorship of a Power Rangers-Iwerks tour through September.

The company said its ``Dino Island II 3D'' has generated strong grosses since it was released last month in Vallejo and Montreal. It promised to release a new 3-D ride simulation film, ``Journey Through the Center of the Earth,'' in October.

Burbank-based Iwerks also said Regal Cinemas will open an Iwerks' TurboRide in Fort Lauderdale, Fla., today, while Dave and Buster's will open a TurboRide theater at the Irvine Spectrum in Orange County on July 16. Two TurboRides will open this fall in Tennessee.

``These developments demonstrate our commitment to expand our reach in ride simulation, and develop dramatic and engaging entertainment attractions,'' said Charles Goldwater, president and chief executive officer.

But Wall Street was unimpressed. Iwerks shares, which touched 5-5/8 last July, have closed at 1-7/8 during the past three sessions.

Kevin Skislock, an analyst with LH Friend, Weinress, Presson & Frankson, cut his buy rating recently to neutral because of concerns over the impact of the Asian financial crisis on Iwerks and its recent loss of a simulator contract for the Atlanta Dave & Buster's to Studio City-based Cinema Ride.

Iwerks hired investment banker Schroders on Monday for help in developing its strategic growth plan through seeking partners, identifying financing opportunities and accelerating expansion.