Cinram Reports Strong Performance Partly Thanks to BD

Replication company Cinram today reported its financial results for the third quarter of 2009, which were consistent with expectations. Although unit sales of DVDs and CDs were down from 2008, the increase in Blu-ray volume, coupled with the company's increased operating efficiencies, resulted in a strong financial performance.

"During the quarter, we intensified the focus on improving our cost structure and continued improving our balance sheet through debt reduction," commented Cinram Chief Executive Officer Steve Brown.

Cinram recorded a 15 per cent decrease in revenue to $351.2 million in the third quarter from $411.7 million in the third quarter of 2008. Excluding the effects of foreign exchange, revenue decreased by 12 per cent. For the first nine months of 2009, revenue decreased by 18 per cent to $955.4 million from $1,171.7 million in the same period in 2008 due to lower home video revenues resulting from decreases in both units shipped and average selling prices. Excluding the effects of foreign exchange, revenue decreased by 13 per cent.

In September, the Fund signed a three year extension of the replication services agreement with Lions Gate Entertainment Inc. "We are very pleased that we have extended the long standing relationship with a very important studio client" said Brown.