Rentrak Corp., a distributor of pay-per-transaction videocassettes, will take a $ 2 million charge in the second quarter for suspending efforts to establish a unit in German-speaking Europe.
“We failed to obtain sufficient product-flow commitments from program suppliers,” said Ron Berger, chairman of the company.
Rentrak noted that losses in Europe have hurt its earnings for several quarters.
In the second quarter of 1992, the company posted a loss of $ 475,917, or 5 cents a share, including $ 500,000 of extraordinary start-up costs for its chain store division.
Berger said the company is better off “focusing on the much larger domestic market, where we continue to register record sales and earnings.”
From staff and the Dow Jones News Service