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D-BOX Technologies Reports First Quarter Financial Results
BOXBox(BOX) GlobeNewswire News Room·2024-08-13 21:01

Core Insights - D-BOX Technologies Inc. reported a 16% decrease in total revenues to 8.8millionforQ1fiscal2025,attributedtoongoingsoftnessinthetheatricalmarketandtimingdifferencesinthesimulationandtrainingmarket[2][5]−Thecompanyexperiencedanetlossof8.8 million for Q1 fiscal 2025, attributed to ongoing softness in the theatrical market and timing differences in the simulation and training market [2][5] - The company experienced a net loss of 316 thousand compared to a net profit of 496thousandinthesamequarterlastyear[2][8]−Simracingrevenuesincreasedby496 thousand in the same quarter last year [2][8] - Sim racing revenues increased by 1.1 million, indicating growth in this segment despite overall revenue decline [2][6] Financial Performance - Total revenues for Q1 fiscal 2025 were 8.8million,downfrom8.8 million, down from 10.5 million in Q1 fiscal 2024 [3][5] - System sales revenues decreased by 15% to 6.3million,withsimulationandtrainingsystemsalesdown296.3 million, with simulation and training system sales down 29% to 2.1 million [3][6] - Adjusted EBITDA fell to 263thousandfrom263 thousand from 1.3 million a year earlier [2][8] Market Dynamics - The decline in revenues was influenced by a weaker movie slate compared to the previous year, with only four net new theater installations during the quarter [2][6] - Rights for use, rental, and maintenance revenues decreased by 19% to 2.4million,primarilyduetotheabsenceofblockbustertitlesinthecurrentquarter[6][7]−Despitethechallenges,occupancyratesforD−BOXseatsincinemasremainedhigh,supportedbydemandforpremiumofferings[2][6]StrategicInitiatives−Thecompanyisfocusingonprofitablegrowthincommercialmarkets,supportedbyastreamlinedsalesandmarketingstructureandafavorablecreditagreement[2][8]−Anorganizationalrestructuringhasbeencompletedtoreducecostsandenhancecommercialexecution[2][8]−D−BOXhadacashpositionandundrawncreditfacilitiestotaling2.4 million, primarily due to the absence of blockbuster titles in the current quarter [6][7] - Despite the challenges, occupancy rates for D-BOX seats in cinemas remained high, supported by demand for premium offerings [2][6] Strategic Initiatives - The company is focusing on profitable growth in commercial markets, supported by a streamlined sales and marketing structure and a favorable credit agreement [2][8] - An organizational restructuring has been completed to reduce costs and enhance commercial execution [2][8] - D-BOX had a cash position and undrawn credit facilities totaling 6.7 million at the end of the quarter [8]