Cost Cutting Brings Improvement to Image

Image Entertainment Inc. narrowed its net loss in the first quarter as a result of restructuring at the company. The Chatsworth-based producer and distributor of home entertainment programming reported a net loss of $41,000, or $0.00 per diluted share, on revenues of $17.5 million for the quarter ending June 30. For the same period in 2009, the company had a net loss of $3 million, or $0.14 per diluted share, on revenues of $23.7 million. Image has struggled in recent years as consumer spending dropped during the recession resulting in fewer sales of DVDs. The company was bought out early in the year by private equity firm JH Partners, which then installed a new management team at Image. Image began to slash its expenses by laying off 30 percent of its workforce at the Chatsworth headquarters, reducing the leasing cost of the headquarters, and renegotiating vendor contracts. “We look forward to continuing to see the positive results of our efforts to restructure our company,” said Board Chairman and CEO Ted Green. “We believe we’ve made significant progress in a mere seven months. Our continued expansion into additional ancillary markets will position Image well against its competition.” Shares in Image closed at $0.22. Mark R. Madler