Canadian producer DHX sees quarterly loss
Failed reverse takeover of rival E1 to blameTORONTO -- Despite spiked revenues, Canadian kids TV producer DHX Media on Monday swung to a second-quarter loss due to a one-time charge for a failed CAN$68 million ($55.5 million) reverse takeover of rival producer E1 Entertainment.
Halifax-based DHX saw revenue for the three months to December 31 rise 131% to CAN$21.5 million ($17.3 million) on 80 half-hours of TV program deliveries, against CAN$9.3 million on 55.5 half-hours of content in 2008.
But a CAN$1.1 million ($880,000) charge to put the brakes on a reverse takeover of E1 Entertainment led to a second-quarter loss of CAN$328,000 ($264,000), compared with a year-earlier profit of CAN$137,000.
DHX, best known for its kids series "Franny's Feet," "Bo on the Go" and "Martha Speaks,” said it has CAN$12 million ($9.6 million) in cash on hand to weather the current economic downturn.