Brent: Just got off phone with IR for UPX:
Unapix Entertainment: quote.yahoo.com $5 5/16 + 1/2 vol 183k shares out 6.5M/ float 2.2M low pe 23 considering high growth.
Earnings coming out this week. No, they can't provide any projections for quarter or year.
Made 24 movies last year. 5 or 6 movies currently in production. They sell to BlockBuster and other video stores first. 'start with rentals, some theatrical, sell also to HBO, Showtime, etc. After that they move to "sell thru", pay-per-view. Depends on demand for title.
They cater to niche markets with their own extensive library of licensed titles and productions. He doesn't see a comparison to general online music/video stores like CDNW or KTEL.
The websites will be greatly expanded with new titles available.
Revenues are growing at exceptionally high rate according to last 10KSB: YEAR ENDED DECEMBER 31, 1997 COMPARED WITH YEAR ENDED DECEMBER 31, 1996
Revenues for the year ended December 31, 1997 increased by 43%, to $32,152,000 from $22,413,000 in 1996. This increase in revenues is primarily a result of the increase in licensing and distribution revenues by 90%, to $12,671,000 as compared to $6,673,000 in 1996 due to the release of productions to the markets, the continued growth of the library through acquisitions and aggressive marketing in the domestic and foreign marketplaces. It is expected that improvement in licensing revenues will be realized in 1998. In addition, home video revenues increased by 24%, to $19,481,000 from $15,740,320 in 1996. This increase was largely due to a significant increase in sales volume by the video sell-through operations which began in 1996, and to a lesser extent to the distribution of higher quality films to the rental marketplace. Sell-through revenues are expected to increase significantly in the second half of 1998, due to the continued growth in the Company's library of programming. The Company released 25 films to the rental marketplace in 1997. It is expected that the Company will release a similar number of films in 1998, however, these releases will be of higher quality films which should increase revenue.
Licensing and distribution costs for the year ended December 31, 1997 increased by 90%, to $8,947,000 as compared to $4,704,000 in 1996. This increase reflects increased royalty and amortization expense associated with the higher levels of revenues described above. The increase in home video operating costs of 21% to $12,574,000 from $10,373,000, represents the amortization of film costs and royalty expense related to the increase in home video revenues, described above.
According to David M. Fox, President and CEO of Unapix Entertainment, Inc., the company will rapidly expand its marketing activities on the Internet. Said Fox, ''We will offer a connoisseur's selection to the niches in which we excel, and will respond to our core consumers' needs and suggestions. Our competitive advantage comes through our expanding television and video activities. They provide us marketing platforms to self-selected target audiences. We call our approach 'Global Affinity Marketing.''
biz.yahoo.com Tuesday May 5, 10:06 am Eastern Time
Company Press Release
Unapix Entertainment Expands E-Commerce Activities Through Formation of New Internet Division The Unapix Internet Division will create some half dozen sites - modeled on the existing site, THEJAZZSTORE.COM - to exploit the entire Unapix video, audio and DVD titles catalog and its co-branded divisions, with a broad range of titles from Unapix/Miramar, Inner Dimension, Unapix Video, and Miramar Comedy. |