Cinedigm Corp.'s revenues increased 23% to $22.9 million for the first quarter fiscal 2015, from the prior year quarter of $18.5 million, the Los Angeles-based company announced Wednesday, despite a $4 million to $5 million reduction in cash flow in the quarter, which ended June 30.
The company disclosed that it had signed 30 distribution deals in 2014 and its Cinedigm Entertainment Group, a division of Cinedigm Digital Cinema Corp., expanded to $7.1 million, an increase of $3.9 million, or 118%, year over year. That did not hit target estimates.
Cinedigm said $2.2 million of that expansion is attributed to "a lower than expected increase in net revenues resulting from the GVE acquisition." Cinedigm acquired Gaiam's entertainment unit, GVE, for $51.5 million in October. That acquisition expanded Cinedigm's library and digital rights.
The transition of the company's DVD back office fulfillment system to a new supply chain partner "did not go as planned," the company said.
"The transition was much more challenging that we expected," said Chris McGurk, Cinedigm chairman and CEO on the call. The first quarter consolidated adjusted EBITDA decreased 26% to $7.2 million from the prior year quarter of $9.7 million.
Adam Mizel, Chief Operating Officer, outlined a six-point plan on the earnings call to investors to jumpstart the company during its seasonally slower quarters, including the launch of its original programming initiative including "Fight of the Living Dead" on its 'Con TV.
For the company's over the top digital channel business, a top priority according to Cinedigm's toppers, it is looking for $500,00 to $1 million subscribers over a three- to four-year period. It has launched three channels and is looking to do two more before the end of the year.
Related storiesAmazon Acquires Exclusive Streaming Rights to Drafthouse Films via Cinedigm PactCinedigm Promises Robust Expansion of Digital NetworksCinedigm to Launch 'Family-Friendly' Online Movie Subscription Service 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLCCopyright © 2015, CT Now