Cinedigm Revenues Rise, And So Does Its Stock
A year after CEO Chris McGurk arrived and started reinventing the company, revenues and the stock price are up, although it continues to lose money.
Cinedigm Digital Cinema Corp., which has been reinvented in the past year under new CEO Chris McGurk, reported revenues for the third quarter which ended Dec. 31, 2011 were up 23% to 19.8 million.
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While the public company’s stock actually dropped 15 cents Thursday in advance of that earnings news, it has recently been rising. Cinedigm shares have jumped from $1.36 on Jan. 9 to $2.06 on Thursday. That is the highest they have been since April 21, 2011.
While revenues are up, mostly from an increase in the number of movie theaters that Cinedigm is converting to digital, the company still had a loss for the quarter of $10.7 million. That compared to a loss of $4.2 million in the same quarter one year earlier.
For the first nine months of its fiscal year, Cinedigm reported revenues form continuing operations rose 37% to $58.9 million, compared to $43.1 million in the same period a year earlier.
Since McGurk took charge just over a year ago, he has concentrated on key business units including digital conversion, specialized software for distribution and exhibition and increasingly, producing and distributing content to movie theaters for special event programming. On Jan. 23, Cinedigm announced a partnership with New Video Group of New York City to acquire and exploit independent films.
"In just one year’s time, we have transformed Cinedigm to more aggressively monetize the worldwide digital cinema explosion," said McGurk in a statement. "We are very pleased that our strong third quarter operational results and financial performance reflect the progress we’ve made."