Digital Domain Media Group Announces Shareholder Call To Discuss Improvements In Labor Utilization And Developments In Patent Litigation And Licensing

Digital Domain Media Group, Inc. (NYSE: DDMG), a leading digital production company focused on visual effects, original content animation and major studio co-productions, will host an investor conference call with John Textor, chairman and CEO, on Wednesday, July 18, at 11:00 a.m. EDT to discuss the following topics:
  • Improvements to the labor utilization rate – The company will provide an update on improved labor utilization rates across both its domestic and international facilities.
  • Favorable amendments to third-party outsourcing agreements – The company will discuss amendments to its agreements with RelianceMediaWorks Limited that eliminate on going liabilities and improve collaboration on marketing efforts between Digital Domain Media Group and RelianceMediaWorks Limited’s facilities in the UK and Mumbai.
  • Digital Domain Media Group’s patent protection and monetization – The company will provide an update to its ongoing patent protection initiatives, including an update on filed litigation, settlement discussions and resulting licenses of the company’s 3D conversion technology.
  • Virtual Performer – The company will review recent developments in its Virtual Performer business, including a discussion of reallocation of resources to meet demand from owners of high-impact intellectual property.
  • China and Abu Dhabi capacity expansion – The company will provide an update on plans to expand the company’s studios in China and Abu Dhabi to meet demand.
  • Strategic initiatives – The company will provide an update on strategic discussions aimed at increasing shareholder value.

The conference call will begin at 11:00 a.m. EDT and will be broadcast live over the Internet and can be accessed through the Investor Relations section of the company’s website at or directly at DDMG Investor Call. The call can also be accessed via telephone by calling 866-730-5770 (U.S.) or 857-350-1594 (International) and using the passcode 35604289. A replay will be available for seven days by dialing 888-286-8010 or 617-801-6888 (International) and using the passcode 53655621.

“We are making significant progress in improving our gross profit margin by both building revenue and reducing unutilized labor costs,” said John Textor, CEO of Digital Domain Media Group. “The recent developments outlined above have accelerated the rate of improvement not only by adding to revenue but also by enabling us to use our labor resources much more effectively.”

About Digital Domain Media Group

Digital Domain Media Group (DDMG: NYSE) leverages its expertise in digital visual effects (VFX) and computer-generated (CG) animation across a group of interrelated businesses. At its foundation is Digital Domain Productions (DDPI), an award-winning digital production company founded in 1993. This leading provider of visuals has contributed to more than 90 major motion pictures, including Titanic, the Transformers series, Pirates of the Caribbean: At World’s End and TRON: Legacy, hundreds of commercials, and recently created the virtual likeness of rapper Tupac Shakur for Dr. Dre’s show at the Coachella Valley Music Festival. Mothership, a DDPI subsidiary, focuses on creating advertising, entertainment and branded content from concept to completion, across multiple media platforms. DDMG, its work and its employees have been recognized with numerous awards, including seven from the Academy of Motion Picture Arts and Sciences. The company is building on its success in VFX to participate as a co-producer in major productions and is currently co-producing the upcoming live-action sci-fi feature film Ender’s Game, as well as virtual likenesses for Elvis Presley that will be jointly owned by CORE Media Group and DDMG. DDMG also converts two-dimensional (2D) imagery to three-dimensional (3D) imagery and holds key patents in this area. The company is also applying its CG expertise to produce original, family-friendly animated feature films at its subsidiary Tradition Studios. The first movie, The Legend of Tembo, is in pre-production and two more features are in development. The company’s education subsidiary, the Digital Domain Institute, sets a new standard in digital media education through a pioneering public-private partnership with The Florida State University College of Motion Picture Arts. DDMG is expanding its worldwide footprint of the highest quality visual effects and animation at the lowest possible cost through global partnerships in India and China. The company has studios in Los Angeles, San Francisco, Florida, Vancouver, Mumbai and London, and is currently establishing studios in Beijing and Abu Dhabi.

Safe Harbor Statement

Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include comments about the Company's plans, prospects, strategies and future performance. They are made on the basis of our management’s current expectations and beliefs, as well as a number of assumptions regarding future events and business performance as of the time the statements are made. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control. These could cause actual results to differ materially from the results expressed or implied in the forward-looking statements.

Such differences may result from actions taken by the Company, as well as from developments beyond the Company’s control, including, but not limited to:

  • price volatility of the Company’s common stock;
  • changes in domestic and global economic conditions, competitive conditions and consumer preferences;
  • our dependence on a limited number of large projects each year, and the timing of revenue flows from those projects;
  • developments in the status of strategic initiatives taken by the Company;
  • audience acceptance of feature films we may co-produce; and
  • rapid technological developments, including new forms of entertainment.

Further information on these and other factors and risks that could affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including under the heading “Risk Factors” in our Registration Statement on Form S-1. These documents are available on the SEC Filings subsection of the Investors section of the Company’s website at:

Information on our website is not part of this press release. All information provided in this press release is as of July13, 2012, and the Company undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.

Copyright Business Wire 2010

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