Fred, some news. There was a reason for the decline - the China
orders did not close as planned, also sponsorship of their
portable rides is not firm. Ivestor Relations indicates that they will be
profitable but most likely will not meet the 0.35 analyst projection.
I'd like to see insider buying before considering additional purchases.
My guess is that they will beat last years first quarter, but not the second
and third quarters. News is below:
( BW)(IWERKS-ENTERTAINMENT)(IWRK) Iwerks Entertainment Anticipates
Profitable First Quarter
Business/Entertainment Editors
BURBANK, Calif.--(BUSINESS WIRE)--Oct. 9, 1996--Iwerks
Entertainment Inc. (NASDAQ NM:IWRK) today announced that it
anticipates earning a modest profit for the fiscal 1997 first
quarter ended Sept. 30, 1996.
In addition, the company's balance sheet remains strong, with
more than $22 million in cash and less than $3 million in long-term
debt. The company expects to report definitive results for the
quarter during the week of Oct. 28, 1996.
Roy A. Wright, co-chairman and chief executive officer of
Iwerks, stated: "We expect our results for the first quarter to
continue to reflect the positive impact of the turnaround strategy
adhered to by management throughout fiscal 1996. Our fundamental
business continues to be strong, and we have confidence in our
operating strategies.
"Shorter-term, we have recently experienced some customer-
related delays with regard to recently signed simulation theatre
contracts in Asia," Wright continued. "These delays will result in
a shortfall in revenues and earnings from analyst consensus
estimates for the second quarter.
"In addition, as previously disclosed, our principal sponsorship
agreement for our Reactor portable simulation theatres concluded on
schedule after two successful years coincidental with the normal
winter hiatus for this program," he added. "We are currently
evaluating a number of possibilities for alternate sponsors.
However, if such an agreement were signed it would not likely take
effect until the third quarter.
"Despite these recent events," Wright noted, "we continue to
expect to report a profit for fiscal 1997."
Iwerks Entertainment is one of the world's leading producers of
high-tech, multi-sensory experiences such as ride simulation, 2D and
3D giant-screen theatres, 360-degree video dance clubs and other
immersive attractions.
Serving prestigious entertainment, information, and marketing
providers, over 250 Iwerks attractions can be found worldwide at
Location-based entertainment centers, amusement parks, family
entertainment centers, shopping centers, casinos, resorts,
nightclubs, restaurants, museums, fairs, festivals, and more.
With the exception of the historical information, the matters
discussed above include forward-looking statements that involve risks
and uncertainties. Among the important factors that could cause
actual results to differ from those indicated in the forward-looking
statements are costs of sales and the ability of the company to
maintain pricing at a level necessary to maintain gross profit
margins, the level of selling, general and administrative costs, the
performance by the company under its existing purchase contracts and
the ability to obtain new contracts, the success of the company's
owned and operating strategy, the success of the company's film
software and the effects of competition.
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Note to Editors: For this company's past press releases go to
businesswire.com. |
