DISK announces FY98 results
biz.yahoo.com
Was sort of expected. LDs crashing, DVD picking up nicely (and we don't know what's happening this quarter). I think they are getting hurt but are holding out.
This is key:
''In response to diminishing retail support for laserdiscs, the Company is focusing on the enormous potential of Internet commerce. As laserdiscs become more difficult to find through traditional retail sources, consumers are more aggressively seeking out laserdisc software on the Internet. In the next several years, we envision a significant shift in consumer buying patterns toward the Internet, not only for laserdisc but for DVD, DTS software and a host of other formats as well. We believe the Internet will allow us to further leverage our core competencies, which include being a cost effective distributor. Image is therefore actively formulating an Internet strategy for direct-to-consumer sales. We are reviewing all of our opportunities with an aim to developing a strong, well articulated path into this marketplace. Our new warehouse and distribution facility in Las Vegas, Nevada, which will be fully functional within the next 90 days, is integral to our plans. The 76,000 square foot facility is designed to accommodate the needs of our growing retail customer base as well as consumer direct Internet orders. We also have architectural plans which allow us to build-out the facility to 150,000 total square feet should the need arise.
''We believe we can simultaneously support a retail base while initiating a direct-to-consumer business. This dual approach to marketing diversifies our profile and diminishes the risk of relying solely on retail distribution.
Greenwald concluded, ''Even though our laserdisc sales decline reflected the contraction in the laserdisc marketplace, I have never been more excited about our future. The challenge and task before us is filled with both the potential for multiple format software growth as well as the exciting opportunity for new, direct-to-consumer sales.''
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