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Non-Tech : Image Entertainment (DISK) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Fraser who wrote (245)	11/12/1998 11:05:00 AM
From: William T. Katz	Read Replies (1) \| Respond to of 379

2nd Qtr FY99 Results Out biz.yahoo.com Net loss of .05 per share on net sales of $13.8 million. Net sales of DVD and laserdisc programming represented approximately 48% and 52%, respectively, of the Company's total net sales for the September 1998 quarter, compared to 18% and 82%, respectively, for the September 1997 quarter. Net sales of exclusively distributed and licensed DVD programming represented approximately 58% and 42%, respectively, of the Company's total DVD net sales for the September 1998 and 1997 quarters. "Our new relationships with major video distributors as well as an expanding retail and Internet customer base including, Comp USA, Costco, Target, Reel.com and NetFlix.com, demonstrates the acceptance of our exclusive programming." "Although originally expected to be operational in September, we are confident that our new Las Vegas distribution facility will begin shipping product by the end of our third quarter. The equipment engineering and custom software employed in this new facility represents a great opportunity for us. The new facility has the potential to raise our level of customer service and create additional opportunities for Image to act as a third party fulfillment center for the growing Internet community."

To: Jim Fraser who wrote (245)	11/12/1998 11:56:00 AM
From: William T. Katz	Respond to of 379

A look at some of the sequential numbers: June 98: $17.1 million net sales 38% DVD, 62% LD $6.498 million from DVD $10.60 million from LD Sept 98: $13.8 million net sales 48% DVD, 52% LD $6.624 million from DVD $7.176 million from LD From the annual report: "The Company has generally experienced higher sales of LDs and DVDs in the quarters ended December 31 and March 31 due to increased consumer spending associated with the year-end holidays and because most sales of a title occur in the first few months after its release." I don't have access to revenue figures for quarters back a few years, but I believe from the 98 quarterly reports that Dec > Mar > June > Sep. Anyone have the figures? In any case, I would have expected better DVD gains sequentially but it's possible that June to Sep qtr revenue decrease is significant on a seasonal basis. I would hope to see much more significant DVD/other revenue once the warehouse ramps and they get some fulfillment deals with internet retailers. Then DISK growth will be decreased by diminishing LD sales (although they are finally dropping the prices on LDs to match DVDs) and increased by (1) internet retailing growth and (2) DVD growth.