Iwerks Posts Profit, but Revenue Slides

Iwerks Entertainment Inc. in Burbank returned to profitability in its fiscal first quarter after posting a $13.5-million loss in its last fiscal year.

The company, which designs special-format movie theaters, simulation rides and virtual reality attractions, earned $141,000 in the quarter ended Sept. 30, compared to a loss of $786,000 in the year-earlier quarter. Its revenue fell 8% to $10.1 million from $11 million.

Iwerks said the revenue decline was due to the timing of production and delivery of backlogged orders and that revenues for those orders would show up in subsequent quarters. It attributed its return to profitability to improved efficiency and reduced costs.

In the past year, Iwerks has undergone a wrenching restructuring that included layoffs, the consolidating of operations at its Burbank facility and a change in management. In September, Iwerks co-founder Stanley Kinsey resigned as chairman after shouldering much of the blame for what was seen as a misguided expansion that led to the company’s financial problems.

Iwerks added that it has two new orders to install simulation theaters in entertainment complexes in Rochester, N.Y., and Stockton, England.