NEW YORK (TheStreet) -- Shares of Cinedigm (CIDM) are soaring 44.43% to $1.30 on heavy trading volume Friday afternoon after the company reported a narrower-than-expected loss for the 2016 fiscal fourth quarter and announced management changes.
After yesterday's market close, the New York-based content distributor posted a loss of 95 cents per share, smaller than the loss of $1.05 per share that analysts had projected.
Revenue for the period was $23.21 million, in line with analysts' estimates.
The company said it is on track to achieve in excess of $10 million in cost savings that were initiated in fiscal 2016.
Additionally, Cinedigm appointed Ron Chez today as its new lead director following one year as a strategic advisor to the company.
Effective immediately, the company's board of directors will be reduced to five directors from seven. Blair Westlake and Martin O'Connor have resigned from the board to achieve the reduction.
"This streamlining will further improve board efficiency and I am confident the board is fully aligned with shareholder interests," CEO Chris McGurk said in a statement.
About 1.86 million of the company's shares changed hands so far today compared to its average 30-day volume of 64,738 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.