Cinedigm Corp. missed Wall Street expectations on earnings and revenue for the fiscal third quarter.
The Sherman Oaks entertainment content distributor reported on Tuesday a net loss of $2.3 million (-5 cents a share) for the quarter ending Dec. 31, compared with a net loss of $3.3 million (-9 cents) in the same period a year earlier. Revenue decreased by 21 percent to $11.5 million.
A single analyst who follows the company expected a loss of -1 cent on revenue of $13.9 million, according to Thomson Financial Network.
One highlight of the quarter was the announcement of a $68 million all-stock deal to acquire 29 percent of Starrise Media Holdings Ltd., a Chinese entertainment production company.
Cinedigm Chief Executive Chris McGurk called the deal a key step in the company’s plan to become the first fully integrated North America-China studio.
“This transaction reinforces our position as a leading distributor of premium film and TV content in the two biggest and most important entertainment markets in the world and strategically aligns with our efforts to grow our streaming revenues,” McGurk said in a statement.
Quarterly results were reported on Tuesday. On Wednesday, shares of Cinedigm (CIDM) closed down 4 cents, or less than 1 percent, to 54 cents on the Nasdaq.