Cinedigm Says Biz Quirks Contributed To Rise In Net Loss For Fiscal Q2
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The digital cinema company has a mixed report for the quarter that ended in September. The good news is that it installed 875 digital screens in the quarter for a total of 10,852, making this the second-highest installation quarter in its history. The bad news: It compares to last year’s quarter when it installed 1,455 screens, its most ever. That contributed to an increase in Cinedigm‘s net loss to $2.6M, from $230,000 in the period last year, on revenues of $22.6M, +7.5%. The revenue figure was short of the consensus forecast of $24.0M. The net loss of 6 cents a share was on target. But don’t read too much into the forecasts: Few analysts track the company; the average is only based on two projections. Cinedigm execs took pains in a conference call to point out what COO Adam Mizel said were “idiosyncratic events” that affected the quarter. He said that digital movie orders were depressed by the Olympics, studio reluctance to compete with Warner Bros’ The Dark Knight Rises, reduced attendance after the theater shootings in Aurora, CO, and two major rescheduling decisions: Warner Bros moved Gangster Squad to January 2013 from August and Paramount delayed G.I. Joe: Retaliation to March 2013 from this past June. Taking all of this into consideration, “overall we had a solid quarter that was ahead of our expectations.” CEO Chris McGurk says. Cinedigm reaffirmed its projection to end this fiscal year with as much as $97M in revenue. “We expect Q3 and Q4 to be our strongest financial quarters of the year,” Mizel says. The company adds that it’s building its independent film releasing business with hopes to offer as many as 25 a year.