Image Entertainment Inc. has turned the corner financially after skidding into the red.
The Chatsworth, Calif.-based laserdisc company recorded a $ 772,680 (5 cents a share) net profit for the first fiscal quarter ended June 30, compared to a $ 1.7 million (15 cents) net loss in the same period last year.
On an operating basis, the company posted a $ 1.5 million profit, compared to a $ 963,152 loss.
Revenue was up 74% to $ 17 million from $ 9.8 million in the comparable period.
The turnaround in profitability was tied to a restructuring last March that reduced the head-count and pared salaries. In addition, during that quarter the company took a one-time write-down. Overhead was cut to 5.2% of sales, vs. 10.3 %.
In the wake of the shake-up, chairman Martin Greenwald’s salary has been cut to $ 160,000 from $ 204,000, with his employment contract currently running on a month-to-month basis. According to Greenwald, a new contract is being drafted.