Cinedigm (CIDM) - Get Cinedigm Corp Report shares skyrocketed Thursday after the video distribution company reported that preliminary revenue rose 6.9% to $8.3 million in the latest quarter from $7.7 million a year earlier.
That growth, for the fiscal 2021 fourth quarter ended March 31, stemmed from a 25% increase in content and entertainment revenue, to $7.2 million, the company said. That was partially offset by an expected decline in legacy cinema equipment revenue.
The stock was at $1.41, up 31% in premarket trading Thursday. It has gained 30% in the six months through Wednesday.
Streaming channel revenue soared 197% and total streaming minutes jumped 285%. Cinedigm slashed its debt 76% to $11.9 million as of March 31 from a year earlier.
“We have now successfully completed the transition of Cinedigm from its legacy digital cinema equipment business to a high-growth, independent streaming entertainment channel and content company,” said CEO Chris McGurk.
The company also said Thursday it couldn’t file its annual report because of “office closures, remote work requirements and affected personnel related to the COVID-19 pandemic, and delays relating to compiling information related to recent acquisitions.”