Shares of Image Entertainment Inc. rose 6 percent the day after the home entertainment programming producer and distributor said it swung from a loss to a profit in its fiscal first quarter, and expects to be profitable for the fiscal year.
After Tuesday's market close, Chatsworth-based Image reported net earnings of $1.69 million, or 8 cents per share, for the quarter ended June 30, compared to a net loss of $2.59 million (-12 cents) for the same period a year ago. Net revenues jumped 56 percent to $32.6 million
Image Entertainment, which in 2006 fought off a take-over attempt by Santa Monica-based Lions Gate Entertainment Corp., has struggled to adapt to new digital technologies.
But in a conference call with analysts, President David Borshell said the June quarter revenue was the best since its December 2005 quarter, fueled by new revenue streams from feature film distribution, digital rental and sales, television-based products and offerings in the new Blu-Ray high definition format.
"While (standard) DVD remains the primary revenue driver of the company, we are seeing positive results from our extended revenue streams," Borshell said.
The company did not give specific earnings guidance, but anticipates that it will be profitable for fiscal 2009 at the high end of its earlier revenue guidance of $115 million to $125 million.
Shares of Image gained 7 cents to close at $1.24 in Wednesday trading on the Nasdaq.
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