Genius eliminates 32 staffers
By Jennifer Netherby -- Video Business, 4/30/2008
APRIL 30 | Genius Products has undergone a “restructuring” that resulted in the elimination of 32 positions, or about 14% of the company’s staff.
The company confirmed the layoffs, but a spokesman declined to comment further.
Genius, which is majority-owned by The Weinstein Co., posted a $17.7 million net loss for 2007, on revenue that rose 72%, to $474 million. The company has expanded rapidly, distributing product from TWC, as well as IFC, Discovery, Sesame Workshop, World Wrestling Entertainment, Classic Media, Pure Flix Entertainment and others.
At the time it reported earnings, the company said it was optimistic that its recent expansion into videogames, among other initiatives, will improve business in 2008. Moving into higher-margin videogames, direct-response and service agreements should represent 6% of 2008 revenue, according to Genius.
At the same time, the company has shifted away from non-branded DVD distribution, which includes some of its budget product. These releases generated only 2% of its 2007 net revenue. The company also is planning to break into Canadian distribution.
The Weinstein Co. predicts a strong slate of catalog and direct-to-DVD titles this year, which will be distributed by Genius. TWC expects 10% revenue growth in 2008 over the prior year.
Genius projects to deliver net revenue in the range of $600 million and $700 million in 2008.
