A botched merger and a decline in DVD sales made for a disappointing year for home entertainment distributor and producer Image Entertainment Inc. The Chatsworth-based company ended its fourth quarter and 2008 fiscal year in the red but President David Borshell proclaimed a bright future based on its digital distribution format and acquisition of feature films. “Image is resilient and always seems to come back stronger than ever after difficult times,” Borshell said. For the quarter ending March 31, Image reported a net loss of $14.7 million, or $0.68 per diluted share, on revenues of $26 million. That is a wider loss from the $3 million, or $0.14 per diluted share, on revenues of $30.2 million from the same period in 2007. For the full 2008 fiscal year, Image had a net loss of $23 million, or $1.06 per diluted share, on revenue of $95.8 million. For the previous fiscal year, the company reported a net loss of $12.6 million, or $0.59 per diluted share, on revenues of $99.8 million. On June 24, Image entered into a settlement agreement with BTP Acquisition Co, LLC and its affiliates to dismiss lawsuits stemming from the canceled merger between Image and BTP. The deal between Image and BTP fell apart in February over accusations that each had breached the merger contract.
