Image Reports $12 Million Loss for Fiscal 07

Weak home entertainment sales and expenses connected to a pending merger agreement contributed to Image Entertainment, Inc. posting a $12.6 million loss for the 2007 fiscal year, the company reported. The net income loss by the Chatsworth-based producer and distributor of home entertainment content is considerably higher than for the 2006 fiscal year. Image reported a net loss of $12.6 million, or a loss of $0.59 per diluted share, on revenues of $99.8 million for the year. For the 2006 fiscal year, the company reported a net loss of $207,000, or a loss of $0.01 per diluted share, on revenues of $111.9 million. For the fourth quarter ending March 31, the company posted a net income loss of $3.05 million, or a loss of $0.14 per diluted share, on revenues of $30.2 million. That is a greater loss than the $283,000 net loss, or $0.01 per diluted share, on revenues of $30.4 million for the same reporting period in 2006. Non-recurring expenses and the write-off of distribution and music publishing advances paid to and on behalf of provider Source Entertainment contributed to the loss for the fourth quarter, said Image President and CEO Martin Greenwald. Contributing to the losses for the full year was the retail DVD environment plateauing, the bankruptcy of customers Tower Records and Musicland, and uncertainty about the company’s future, Greenwald said. In March, Image reached an acquisition agreement with BTP Acquisition Corp. The deal still needs approval of Image shareholders.