Image Entertainment, Inc. is an integrated home entertainment company, primarily engaged in the business of licensing and distributing entertainment programming. The Company licenses and exploits exclusive rights to a diverse array of general and specialty entertainment programming, such as music concerts and feature films, in DVD and other home entertainment formats

http://www.image-entertainment.com/

CHATSWORTH, Calif.--(BUSINESS WIRE)--Nov. 13, 2008--Image Entertainment, Inc. (NASDAQ: DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, today reported financial results for its second quarter of fiscal 2009, ended September 30, 2008.
"We continue to successfully execute our strategic growth plan of acquiring feature films for distribution across multiple platforms as evidenced by the 50% revenue increase for our second quarter over the same period last year and 53% revenue increase for the first six months of this fiscal year. We are certainly encouraged by our recent results and the fact that we see new and exciting content opportunities still coming our way," stated David Borshell, President of Image Entertainment. "Clearly, this year's financial performance is a dramatic improvement over last year, which was one of our main goals. While we remain cautiously optimistic that this positive trend will continue we also remain focused on our goal of achieving consistent profitability."
Fiscal 2009 Second Quarter Ended September 30, 2008 Financial Summary
   -- Net revenues increased 49.7% to $32.4 million, compared to $21.6
       million for the second quarter of fiscal 2008, which were
       fueled by the Company's new strategy to release feature films
       on multiple formats
      -- Net revenues from digital distribution were $975,000, a 63.0%   increase when compared to $598,000 for the second quarter of  fiscal 2008.
   -- Gross margins were 24.8%, compared to 16.4% for the second quarter of fiscal 2008.
   -- Selling expenses were $4.0 million, or 12.5% of net revenues, up
       from $2.2 million, or 10.1% of net revenues, for the second
       quarter of fiscal 2008 due to increased advertising and
       promotional expenses associated with the Company's new feature
       film distribution initiative.
   -- General and administrative expenses decreased 10.9% to $3.6   million, from $4.0 million for the second quarter of fiscal   2008, primarily due to lower legal expenses.
   -- Earnings from operations were $396,000, compared to a loss from
       operations of ($2.9 million) for the second quarter of fiscal  2008.
   -- Interest expense was $863,000, compared to $808,000 for the  second quarter of fiscal 2008.
   -- Net loss was ($465,000), or ($0.02) per diluted share, compared   to a net loss of ($3.7 million), or ($0.17) per diluted share,
       for the second quarter of fiscal 2008.

Fiscal 2009 Six Months Ended September 30, 2008 Financial Summary
   -- Net revenues increased 52.8% to $65.0 million, compared to $42.5  million for the first six months of fiscal 2008.
      -- Net revenues from digital distribution were $1.7 million, a 58.4% increase when compared to $1.1 million for the first
          six months of fiscal 2008.
   -- Gross margins were 23.6%, compared to 20.8% for the first six
       months of fiscal 2008.
   -- Selling expenses were $7.8 million, or 12.0% of net revenues, up  from $4.2 million, or 9.9% of net revenues, for first six  months of fiscal 2008.
   -- General and administrative expenses decreased 14.1% to $7.6  million, from $8.8 million for the first six months of fiscal  2008.
   -- Earnings from operations were $15,000, compared to a loss from  operations of ($4.6 million) for the first six months of fiscal 2008.
   -- Interest expense increased to $1.7 million, compared to $1.6  million for the first six months of fiscal 2008.
   -- Net earnings were $1.2 million, or $0.06 per diluted share,  compared to a net loss of ($6.3 million), or ($0.29) per  diluted share for the first six months of fiscal 2008.
 

Image Entertainment Provides Net Revenue Guidance for Fiscal 2009 Second Quarter and Six Months 
Second Quarter Fiscal 2009 Net Revenues Expected to Exceed $31 Million First Six Months Fiscal 2009 Net Revenues Expected to Exceed $63 Million
CHATSWORTH, Calif.--(BUSINESS WIRE)--
Image Entertainment, Inc. (NASDAQ: DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, announced today that it expects its fiscal 2009 second quarter net revenues to exceed $31 million. This represents an approximately 43% increase over actual net revenues of $21.6 million for the second quarter of fiscal 2008. For the six months ended September 30, 2008, the Company expects net revenues to exceed $63 million. This would represent an approximate 48% increase over actual net revenues of $42.5 million for the six months ended September 30, 2007.
Actual results for the three and six months ended September 30, 2008 will be released by November 14, 2008, after the Company makes certain post closing adjustments and credits.
The Company also reiterates that it expects net revenues for the entire fiscal year 2009 to be in the range of $115 million to $125 million. The Company is not providing specific earnings guidance for the second quarter or the full year but anticipates that it will be profitable for fiscal 2009

Image Entertainment Reports Fiscal 2008 Financial Results 
Net Revenues for Fourth Quarter were $26.0 Million Net Revenues for the Fiscal Year were $95.8 Million
CHATSWORTH, Calif., Jun 26, 2008 (BUSINESS WIRE) -- Image Entertainment, Inc. (Nasdaq:DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, today reported financial results for its fourth quarter and fiscal year ended March 31, 2008. 
Fiscal Fourth Quarter Ended March 31, 2008 Financial Summary 
-- Net revenues decreased 14.0% to $26.0 million, compared to $30.2 million for the fourth quarter of fiscal 2007. 
-- Digital distribution revenues grew 29.9% to $535,000, compared to $412,000 for the fourth quarter of fiscal 2007.
-- The Company had a negative gross margin of 14.6%, compared to positive gross margin of 16.3% for the fourth quarter of fiscal 2007. 
        -- In the fourth quarter of fiscal 2008, the Company recorded  a charge of $10.4 million, or $0.48 per diluted share,   representing accelerated amortization and fair value  writedowns of its advance royalty and distribution fees and inventories. The charge resulted from primarily reducing its  forecasts of future revenues to be generated from deep   catalogue programming.
 -- The Company reduced ultimate revenue forecasts   following the release of industry market data in the Company's fourth quarter.
  -- The market data reflected the maturation of the DVD  industry.
  -- The $10.4 million charge negatively impacted gross margins by 40.2% in the fourth quarter of fiscal 2008.
   -- In the fourth quarter of fiscal 2007, gross margins were  negatively impacted 7.2% as a result of a $2.2 million, or   $0.11 per diluted share, impairment charge to cost of sales  associated with the bankruptcy filing of a content supplier    of the Company.
-- Selling expenses were 13.0% of net revenues, up from 8.1% of net revenues for the fourth quarter of fiscal 2007, as a result of: 
        -- $547,000 in increased advertising and promotional expenses,
         of which approximately 78% was incurred for titles with
         release dates subsequent to March 31, 2008.
        -- $196,000 in increased personnel costs associated with the
         addition of Image's feature film staff, consisting of
         marketing and sales personnel.
-- General and administrative expenses increased 29.2% to $6,114,000, compared to $4,734,000 for the fourth quarter of fiscal 2007, primarily due to the following factors: 
 -- $744,000, or $0.03 per diluted share, in expenses   associated with the negotiations, related disputes with BTP
 Acquisition Company LLC ("BTP").
  -- In the fourth quarter of fiscal 2007 the Company  incurred $1.2 million, or $0.06 per diluted share, in  expenses associated with negotiating the sale of the   Company.
  -- $979,000, or $0.05 per diluted share, in CEO retirement   package and other severance accruals.  -- $246,000 in legal settlement expenses in relation to the   separation of employment with an executive officer.
 -- $168,000 in consulting fees associated with Sarbanes-Oxley   Section 404 compliance.
-- Interest expense was $843,000, compared to $746,000 for the fourth quarter of fiscal 2007. 
        -- Non-cash interest expense was $409,000, or 48.5% of total
         interest expense, associated with amortization of debt
         discounts and deferred financing costs.
        -- Non-cash interest expense was $431,000, or 57.8 % of total
         interest expense for the fourth quarter of fiscal 2007.
-- We recorded a net $599,000, or $0.05 per diluted share, non-operating charge to other expense in the accompanying statements of operations for fiscal 2008, reflecting the change in the fair value of derivative instruments related to the Company's convertible note payable. 
-- The net loss was ($14,719,000), or ($0.68) per diluted share, compared to a net loss of ($3,050,000), or ($0.14) per diluted share, for the fourth quarter of fiscal 2007. 
-- In April 2008, the Company and Wachovia Capital Finance Corporation (Western) amended its May 2007 three-year Loan and Security Agreement (i) to increase the maximum borrowing availability under the revolving line of credit to $20 million, based upon eligible receivables, up from $15 million and (ii) reduce minimum financial covenant levels on a going forward basis.