Harmony Posts Loss of $397,284 in 1st Quarter

Harmony Holdings Inc., a Burbank producer of television commercials, reported a $397,284 loss for its fiscal first quarter that ended Sept. 30. A year before, the company earned $125,703.

The company’s revenue for the latest quarter was $4.09 million, down 19% from $5.02 million in the comparable period in 1991.

Harmony said it was negatively impacted by competitive factors in a weak industry, shrinking production budgets and its inability to find directors to shoot its commercials.

Separately, Harmony’s 58% owner, Ventura Entertainment Group Ltd., has entered into a tentative deal that could result in Ventura’s shareholders assuming a direct ownership interest in Harmony.

Ventura said it signed a letter of intent that calls for Ventura to sell preferred stock to Artists and Entertainment Inc. for at least $500,000. If the transaction is approved, Artists and Entertainment would end up owning about 70% of Ventura’s common stock and Ventura shareholders would have an opportunity to buy stock directly in Harmony and Producers Entertainment Group Ltd. Producers Entertainment is 58% owned by Ventura.

The proposed transactions are subject to the execution of a definitive agreement and other conditions, Ventura said.