Visit Image on-line at http://image-entertainment.com for corporate and marketing information, DTS information and the latest in the Company's DVD, VHS and LaserDisc releases. Also visit Ken Crane's on-line at http://www.kencranes.com for consumer-di
Image Entertainment, Inc. Reports Results For Its Second Quarter Ended September 30, 1999
Net Revenues of DVD Programming Up 113 Percent Compared To Prior-Year September Quarter; Overall Gross Profit Margins Continue To Expand Rising To 25.6 Percent From 23.3 Percent For The Prior-Year September Quarter; September Quarter Consolidated Net Loss Of $0.05 Per Share Primarily Due To Subsidiary Ken Crane's Expansion Of Promotional And Marketing Activities Martin W. Greenwald, Image's President and CEO, stated, ""Although we believe our DVD revenue growth was somewhat hampered by the residual effects of our distribution difficulties during the first four and one-half months of our fiscal year, we are excited about the strong growth of DVD sales we have seen since early September. We have substantially improved our distribution operations over the past three months and continue to work toward 24-hour turnaround on all current orders and toward our ultimate goal of same-day order processing. Our aggressive DVD licensing efforts during the first six months of this fiscal year are starting to bear fruit during this our historically strong third quarter. We continue to build our DVD product line through licensing and have a wide range of exclusive DVD offerings scheduled for release over the next six months."" Greenwald continued, ""While the Ken Crane's RCA promotion, as well as other planned promotional and marketing activities, significantly contributed to the bottom line loss for the quarter and six months, I believe we are on the right path toward expanding Ken Crane's direct-to-consumer business. The RCA promotion was a relatively inexpensive way to gain national recognition for Ken Crane's and gave us the opportunity to introduce Ken Crane's to tens of thousands of new DVD player owners, setting the stage for the impending launch of Ken Crane's new Web site."" ""We have been busy redesigning the layout, navigation and content of Ken Crane's Web site and plan to launch the redesigned site under the new name DVDPLANET.com. DVDPLANET.com will offer product reviews, purchase recommendations tailored to the individual consumer, a wish list for consumers to track desired potential future purchases, current on-line inventory status, current on-line order status and many other features designed to appeal to the Internet shopper. We are also in the process of upgrading our distribution system to accommodate direct-to-consumer fulfillment of orders from the new site. Although we originally intended to launch and fulfill for DVDPLANET.com during the third quarter, we have decided to wait until the fourth quarter to ensure that the full efforts of the Company are focused on the important holiday season and to ensure that our warehouse and distribution systems are ready to accommodate direct-to-consumer fulfillment."" ""We are also in the process of forming new alliances for the sale of DVD programming worldwide through our joint venture partner Aviva International. I am very pleased by the favorable reception our titles have received in the world markets. I hope to announce the specifics of many new international distribution agreements before the end of the calendar year and we expect to begin to realize revenue from international sales of our DVD programming throughout the balance of the fiscal year."" ""I believe we are well-positioned to take advantage of the opportunities before us. DVDPLANET.com has the potential to be a vibrant competitor in the direct-to-consumer market and we continue to quickly expand our sales and marketing efforts both domestically and internationally. We are in a strong position to benefit from industry forecasts of impending explosive DVD growth in the domestic and international markets. I am very optimistic and look forward to reporting improving results in the quarters ahead,"" Greenwald concluded.