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Showscan slips into red with fourth-quarter loss

Showscan Corp. reported a net loss of $ 1,066,000 (23 cents a share) for the fiscal fourth quarter ended March 31. That compares to a net profit of $ 250,000 (5 cents) in the same period last year.

Revenues were down 35% to $ 2.3 million from $ 3.5 million in the comparable period.

For the year, the company recorded a net loss of $ 3.6 million (76 cents), vs. a net loss of $ 1.2 million (28 cents).

Revenues were down 3% to $ 9.9 million.

The results include non-recurring charges of $ 800,000 in the fourth quarter and $ 1.4 million in the year. The fourth-quarter charges included accelerated amortization of film costs, marketing charges associated with the introduction of the company’s high-definition simulator, R&D costs, increases in reserves.

According to the company, discussions concerning its planned merger with Omni Films Intl. Inc. are still ongoing. On May 10, Showscan and Omni agreed in principle to merge. On June 15, the two companies amended the letter of intent for the purpose of enabling either party to seek financing.

James Sorenson, Showscan chief financial officer, said the company has more than $ 5.1 million in working capital, including $ 1.8 million in cash and equivalents.