Iwerks Entertainment Reports 1st-Quarter Loss

Iwerks Entertainment Inc., a Burbank producer of special-format movie theaters and motion simulation rides, reported a large loss in its fiscal first quarter ended Sept. 30.

Iwerks Chairman and Chief Executive Stan Kinsey said the $1.5-million quarterly loss was expected because of increased expenses from expanding into new markets and developing new business ventures.

In the year-earlier quarter, Iwerks earned $452,970. The company’s revenue rose 62% in the latest quarter, to $6.62 million from $4.09 million.

Iwerks’ initial public stock offering last month was greeted with enthusiasm by investors, who bid the price up from $18 a share to $34 within an hour after it began trading, and the stock has remained around that level.

The company plans to use part of the stock sale proceeds to develop its Cinetropolis centers, entertainment complexes that will contain theaters, restaurants and virtual-reality attractions.