Cinedigm Corp. has reported a loss of $10.4 million, or 5 cents a share, for its third quarter ended Dec. 31 — 3 cents better than analyst estimates.
Revenues rose 60% to $34.9 million in the wake of Cinedigm’s October acquisition of Gaiam’s GVE home entertainment brands. The results were announced after the stock market closed.
“The acquisition of GVE has generated solid results right out of the gate,” said Chris McGurk, chairman and CEO. “With the integration on track and nearly complete, we are focused on building our sales pipeline by leveraging our position as the largest independent physical and digital distributor of non-theatrical content into the home and mobile markets.”
McGurk said the company is focused on the opportunity to utilize Cinedigm’s 33,000-plus film and TV episode library to expand its digital network business and cited Wednesday’s announcement that it was launching a Comic Con channel. He also told analysts during a conference call that Cinedigm will add another two to four channels during the next year.
“Our Docurama channel and our recently announced partnership to launch a digital channel for the Comic Con audience are exciting examples of our commitment to build a leading digital network business, while further monetizing our library,” McGurk said.
Cinedigm announced Wednesday that it had teamed up with convention organizer Wizard World to create the new digital network.
The company also adjusted its fiscal fourth quarter guidance and second half guidance to reflect the effect of its revenue recognition, saying that fourth quarter EBITDA would be between $17 million and $18.5 million with total revenues of $35 million to $37 million.