The potential loss of providing merchandising services for two exhibits on King Tut has Tix Corp. considering selling off its exhibit merchandising division.
The Studio City-based company, which also sells discount tickets for shows in Las Vegas, was informed by the producers of the two Tut exhibits they were not able to renew their agreements with the Egyptian government.
Tix brought in $8.9 million in revenue from its exhibit merchandising division in 2011, primarily from two exhibits, “Tutankhamun and The Golden Age of the Pharaohs,” and “Tutankhamun the Golden King and the Great Pharaohs.”
The loss of the Tut exhibits impacts the ability to bring in operating income for the foreseeable future, the company said.
“We are currently evaluating alternatives for this business, including its potential sale,” the company said in a release accompanying its first quarter earnings. “There are no assurances that we will be successful in completing such a transaction in calendar year 2012, if at all.”
In the first quarter ending March 31, Tix reported revenue from the exhibit division of $722,000 but an operating loss of $86,000.
Overall, the company reported a net loss of $294,000, or $0.01 per diluted share, on revenue of $6.6 million. In the same period in the prior year, Tix reported net income of $70,000 on revenue of $6.5 million.
Mark R. Madler