85.7 F
San Fernando
Thursday, Mar 28, 2024

Cinedigm Regains Nasdaq Compliance Twice

So far this month, Cinedigm Corp. has managed to regain compliance with two rules to keep its shares on the Nasdaq. First, the Sherman Oaks independent entertainment content distributor’s share price have stayed above the $1 threshold required by the Nasdaq. And second, it has maintained a $15 million market cap. Nasdaq informed the company in December it was out of compliance. Robert Wasserman, an analyst who covers Cinedigm for Dawson James Securities Inc., in Boca Raton, Fla., said there are two ways for a public company to regain compliance. One is through issuing new shares and the other is through the price of the stock. “In this case they did it with the price of the stock,” Wasserman said. The share price got above the $1 threshold on Jan. 29 and has stayed above it since then. On March 13 it closed at $1.59. “This was a share price issue,” Wasserman explained. “When the market went down and corrected (itself) last year, the shares went down. But now the shares have come back, and the company has had some good earnings.” Cinedigm matched Wall Street estimates on earnings and revenue in its fiscal third quarter. The content distributor on Feb. 13 reported a net loss of $3.3 million (-9 cents a share) for the quarter ending Dec. 31. That compares to a net loss of $5.9 million (-20 cents) in the same period a year earlier. Revenue was $14.6 million, down from $18.5 million in the same quarter the previous year. Austin Moldow, an analyst who follows Cinedigm for Canaccord Genuity Group Inc., in Vancouver, said in a recent research note that the recent quarter was a transitional one for the company. For the first time, streaming and digital revenue were higher than the legacy business line of digital cinema equipment. “Though it remains a small piece of the total, we continue to believe that future growth will be driven by (Cinedigm’s) portfolio of ad-supported (over-the-top) services with upside from its unique relationship with China,” Moldow wrote. “At the intersection of these two growth vehicles is the upcoming launch of Bambu, a Chinese content offering for American consumers.” Canaccord Genuity has rated Cindedigm shares as a “buy” with a price target of $2.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

Featured Articles

Related Articles