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Image Entertainment, Inc. to Report Significant Increases in DVD Revenues for Its Fourth Quarter and Fiscal Year Ended March 31, 1999
CHATSWORTH, Calif.--(BUSINESS WIRE)--May 10, 1999--Image Entertainment, Inc. (NASDAQ: DISK), one of the leading licensees and distributors of optical disc programming in North America, today announced that it expects consolidated net sales for its fourth quarter ended March 31, 1999 to exceed $22,500,000, an increase of over 40% from $15,905,000 for the prior-year fourth quarter ended March 31, 1998 and comparable to net sales for its third quarter ended December 31, 1998. The Company expects DVD net sales for the fourth quarter ended March 31, 1999 to be greater than $16,500,000, an increase of over 165% from $6,183,000 for the comparable 1998 quarter and a slight increase over DVD net sales for its third quarter ended December 31, 1998. Historically, the Company's third quarter has been the strongest revenue quarter for the fiscal year, reflecting the Holiday selling season. During the fourth quarter, the Company believes it experienced carry-over demand for DVD programming due to strong Holiday season DVD player sales.
The Company expects consolidated net sales for its fiscal year ended March 31, 1999 to be greater than $76,000,000, comparable to consolidated net sales of $75,516,000 for the fiscal year ended March 31, 1998. The Company expects DVD net sales for its fiscal year ended March 31, 1999 to be greater than $45,000,000, an increase of over 180% from $15,700,000 for fiscal 1998.
These revenue results are preliminary in nature, pending completion of the Company's regular year-end audit. Fully audited financial results are scheduled for release on or before June 15, 1999.
Martin W. Greenwald, Image's President and CEO said, "I am pleased that our net sales of DVD programming to both traditional and Internet retailers remained strong in the quarter following the Holiday selling season. Our DVD sales to Internet retailers during that quarter were in excess of 20% of our total DVD net sales, versus approximately 3% for the comparable prior-year quarter. We continue to provide DVD programming on a nonexclusive basis to most of the major on-line retailers, including Amazon.com, DVDExpress.com, Reel.com, Netflix.com, as well as our recently acquired subsidiary Kencranes.com.
Greenwald continued, "Our fourth quarter DVD sales will be in excess of 70% of total consolidated net sales for the quarter, a significant increase over the 38% reported for the comparable prior-year period. Approximately 50% of our fourth quarter DVD net sales will come from our exclusive programming, which is higher than the 46% for our prior-year fourth quarter. Further, we expect to report a profitable fourth quarter and full fiscal year ended March 31, 1999.
Greenwald concluded, "We are delighted with the growth of our DVD business and the overall climate for our product on the Internet. In the quarters to come results will vary based on our release schedule but clearly the DVD market is on the rise."
Image Entertainment, Inc. has exclusive DVD license and distribution agreements with a number of program suppliers, including Universal, Orion and Playboy. The Company is also the largest licensee and distributor of laserdiscs with the most extensive library of laserdisc titles in the industry. Some of Image's exclusive laserdisc program suppliers include Disney's Buena Vista Home Video, Twentieth Century Fox Home Entertainment, Warner Home Video, MGM Home Entertainment, New Line Home Video, Orion Home Video, The Criterion Collection and Playboy Home Video.
Visit Image on-line at image-entertainment.com for corporate and marketing information, DTS information and the latest in DVD and laserdisc releases. Also visit Ken Crane's DVD and Laserdisc Superstore on-line at kencranes.com for consumer direct sales.
This release contains "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 concerning: (i) Image's expectation of fiscal year ended March 31, 1999 total and DVD related revenues; (ii) Image's expectation that it will report a profit for its fourth quarter and fiscal year ended March 31, 1999; and, (iii) the Internet as a major growth area for the Company. Actual results may differ materially from the expectations contained herein. Additional detailed information concerning a number of factors that could cause the Company's actual results to differ materially from the expectations contained herein is readily available in the Company's March 31, 1998 Form 10-K and June 30, September 30 and December 31, 1998 Form 10-Q's filed with the Securities and Exchange Commission.
CONTACT:
Image Entertainment, Inc.
Jeff M. Framer, 818/407-9100, ext. 299 (CFO)
jframer@image-entertainment.com
or
Lippert/Heilshorn & Associates
Lillian Armstrong, 415/433-3777, ext. 101 (IR)
lillian@lhai-sf.com
KEYWORD: CALIFORNIA |
