Cinedigm reported $11 million in losses during its most recent financial quarter, as revenue fell 12% to $27.6 million.
The poor results come as the digital cinema company is struggling to transform itself into a new-media player and is busy launching over-the-top channels that cater to faith audiences, fanboys and documentary lovers. During an earnings call with investors, CEO Chris McGurk stressed that the plunge into digital video was essential to the company’s future.
“We believe as our OTT channels scale, we can deliver higher growth,” he said.
Revenue in the year-ago period slipped from $31.7 million, and losses for that quarter were $465,000. Cinedigm announced that its board had approved a $5 million stock buyback. The results did beat consensus analysts’ estimate both in terms of sales and EBITDA.
The company announced that there had been 1 million app downloads across its three digital channels, a sign of growing popularity among its user base.
The earnings announcement came after Cinedigm announced it had purchased a minority stake in Shout! Factory, a distributor of nostalgia entertainment. Even as it works to bolster its over-the-top services, Cinedigm has tapped Evolution Media Capital to evaluate takeover opportunities and explored the idea of joining forces with Relativity Media.
Cinedigm’s stock closed Thursday down 3.8% at 75 cents. Shares were trading at more than $2.80 roughly a year ago.