AME Blames Guild Strike for 88% Drop in Profits

AME, a leading provider of post-production services for the movie and television industries, said its fiscal third-quarter profit plunged 88% from a year earlier despite a 25% gain in revenue.

In the three months ended June 30, AME’s net income fell to $126,654, or 3 cents a share, from $1.03 million, or 20 cents a share, a year earlier. Revenue climbed to $12 million from $9.6 million.

The Burbank company blamed the earnings drop on the 154-day strike by the Writers Guild of America against more than 200 movie and TV producers. The strike, which ended Aug. 7, also will have an adverse effect on AME’s results for its fiscal fourth quarter ending Sept. 30, the company said.

For the first nine months of its fiscal year, AME’s net income fell 18% to $2.30 million, or 46 cents a share, from $2.79 million, or 63 cents a share, a year earlier. Nine-month revenue rose 29% to $34.3 million from $26.6 million.