UPX - Unapix Entertainment, DVD and a deal with DELL

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Technology Stocks
UPX - Unapix Entertainment, DVD and a deal with DELL

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Introduction Compact

Unapix Entertainment Inc. (AMEX: UPX / www.unapixent.com) is a global entertainment company specializing in producing, licensing and distributing market driven feature films, television programming and special interest home video in all media worldwide. The Company also distributes its products to specialized markets via the Internet and other new electronic media.

UPX is just coming onto the "E-commerce" scene. Their web sites look great, and the products are, well - DVDs. Stock beaten down from $5 to 2.25. They have a deal with DELL that they say will result in significant revenue during Q4 ($1.5M) and "double" the following years.

It looks like the insiders have been buying recently.

For fundamentals:
wsrn.com

Other links of interest:
dvdent.com
thejazzstore.com
thehorrorshop.com
innerdimensions.com
Promo web site??? - www.daytraders.org/wallstarb

Q2 Release:
Commenting on the financial results, David M. Fox, Unapix's Vice Chairman and CEO, said, ''We are pleased that the Company continued its revenue growth in the second quarter, providing a record revenue quarter for the Company. Furthermore, with the conversion of our Series B Warrants in June, we increased our working capital by over $5 million which will fuel future expansion.

''Our current period operating results have, however been impacted by certain factors which should result in a stronger growth model for the future. These factors which have increased SG&A expenses for the quarter and interest expenses for the quarter by $1,633,000 vs. the comparable period last year include the following:

$1,398,000 of increased operating expenses resulting in our investments in infrastructure, which sets the stage for future revenue and earnings growth. This includes additional senior management personnel to augment the existing team, the creation of a West Coast production division, the expansion of the European and Latin American sales operations and the costs associated with setting up the Company's direct marketing business. Additional investment was incurred in the development of the Company's new e-commerce business and its ''Ultimate DVD Demo'' in connection with the Dell Computer agreement, revenues from which will begin to be realized in the third quarter.''
The effects of the financial crisis in Asia, which has been reflected by certain delays in over $500,000 of orders from Asian distributors. We expect this business to be reflected in the near future.
An increase in our average shares outstanding of 343,000 shares and an increased interest expense of $235,000 vs. the corresponding period last year. This is an additional indication of the investment made by the Company, in addition to resources and products funded both by internally generated cash flow and capital market borrowings.
Looking to the future value of this investment, we anticipate the second half of the year to result in both record annual revenues and earnings for the Company. Additionally, we closed over $2 million in sales this quarter that will be reflected in revenues later in 1998 and early 1999.

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