Iwerks Reports Loss of $785,645 in 1st Quarter

Iwerks Entertainment Inc., a Burbank-based producer of specialty theaters and virtual-reality technologies, reported a net loss of $785,645 in its fiscal first quarter that ended Sept. 30, compared with a year-earlier loss of $1.5 million.

Revenues rose 67% to $11 million in the latest quarter from $6.62 million in the first quarter of 1993.

Iwerks has had trouble finding investors for its Cinetropolis complexes, mini-theme parks that offer attractions such as theaters with moving seats and dance floors surrounded by 360-degree movie screens. The company initially had high hopes for the concept, but Cinetropolis-related revenues dropped from $2.41 million in the first quarter of 1993 to $975,148 in the latest quarter.

The company said recent revenue gains were due to increased theater sales, a larger number of portable motion simulator attractions and increased film license fees.

The company recently laid off 35 of its 260 employees as part of a reorganization designed to reduce operating costs and improve efficiency. Iwerks Chief Executive Stanley Kinsey said the impact of these steps will begin to be felt in the company’s fiscal third quarter.