Iwerks Posts $1.4-Million Profit; Charts New Strategy

Burbank-based Iwerks Entertainment Inc. continued its financial recovery with a $1.38-million profit in its fiscal third quarter ended March 31.

A year earlier, Iwerks lost $8.61 million. The company’s quarterly revenue rose 28%, to $13.8 million from $10.8 million.

For the nine-month period, Iwerks earned $2.12 million, while its revenue increased 14%, to $37.1 million. In the same period a year before, it lost $10.5 million on $32.5 million in revenue.

Iwerks designs motion-simulator rides and big-screen movie theaters. It said its improved profitability resulted from revenue growth, higher profit margins from hardware and film-licensing sales, and cost reductions.

The company also said it is changing its marketing strategy. Instead of focusing on hardware sales, it will pursue joint ventures to develop its entertainment venues. It said the new strategy will allow it to participate in recurring revenue from ticket sales.

In one such arrangement, Iwerks said it has agreed to develop and operate its motion-simulation theaters with Dallas-based Dave & Buster’s Inc., an operator of restaurants and entertainment complexes.