First-quarter revenue for Vancouver-based Rainmaker Entertainment Inc. (TSX:RNK) fell 46% for the period ending March 31, due to what the company said were external production delays of a major animated film.
Revenue was $3.9 million compared with $7.2 million in 2008's first quarter. The delay of Escape from Planet Earth resulted in a 31% decline in animation revenue over the same period a year ago. Delivery of the film has been delayed until the late fall of 2010, which has pushed production expected in the first quarter into the summer of this year.
As a result of the production delay, the company reported a net loss of $2.7 million compared with a net loss of $432,000 in the same period in 2008. The company reported an earnings loss of $1.3 million compared with earnings before income taxes of $828,000.
The company said the next three quarters will be challenging, but anticipates results to steadily improve over the coming year as production volumes are expected to rise.
Rainmaker's share price range during the past week: between $0.87 and $1.10; 52-week high: $2.67; 52-week low: $0.42.