Charge leads to Q4 loss at Cinram
EmptyTORONTO -- Canadian multimedia producer Cinram International Income Fund said Wednesday that it swung to a fourth-quarter loss because of a steep goodwill impairment charge.
Toronto-based Cinram said it lost $316.6 million during the three months ending Dec. 31, compared with earnings of $95.6 million in 2006, as it recorded an impairment charge of $386.3 million during the quarter.
The one-time charge came as Cinram found the goodwill value in five of 14 manufacturing units in the U.S. and German markets exceeded their fair value. The assets mostly relate to Time Warner DVD and CD manufacturing and distribution as well as printing facilities acquired in 2003.
Fourth-quarter revenue rose 10% to $696.2 million, up from a year-earlier $616.7 million, mainly because of higher home video replication and distribution revenue.
The maker of raw DVDs, CDs and other prerecorded media for the entertainment sector posted a full-year loss of $301.1 million, against earnings of $51.8 million in 2006, on revenues of $2.01 billion in fiscal 2007, as against $1.94 billion in the prior year.