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Technology Stocks : CIDM - Cinedigm Digital Cinema Corp.
CIDM 0.930-11.4%Jan 19 3:55 PM EST

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From: xcentral12/11/2010 11:35:50 AM
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Cinedigm Digital Cinema Corp. Announces Fiscal Year 2010 Third Quarter Results

Commitment for $100 Million Credit Facility Creates Platform for Growth: Phase 2 Gains Momentum

MORRISTOWN, NJ, Feb 11, 2010 (MARKETWIRE via COMTEX) -- Cinedigm Digital Cinema Corp. ("Cinedigm" or the "Company") (NASDAQ: CIDM) reported a 9.5% sequential quarterly increase in revenues to $21.8 million in its seasonally strong fiscal 2010 third quarter ending December 31, 2009. Revenues declined 4% versus the year-ago period. The Company posted Adjusted EBITDA(1) (defined below) of $11.0 million, sequentially increasing 13.8% from $9.7 million in the second quarter. Adjusted EBITDA in the quarter was flat versus the year-ago period Adjusted EBITDA. The net loss in the third quarter of $6.4 million or $0.23 per share includes various non-cash items aggregating to $8.6 million or $0.30 per share, compared to similar items of $22.3 million or $0.81 per share in the year-ago period. The Company ended the fiscal 2010 third quarter with $12.1 million of unrestricted cash (excluding $16.4 million of restricted cash and investments) on its balance sheet.
THIRD QUARTER HIGHLIGHTS

-- Revenues for the fiscal year 2010 third quarter were $21.8 million
compared to $22.7 million in the year-ago period. The decrease was
primarily due to the November 2008 originally contracted 16% step-down
in Virtual Print Fee (VPF) rates charged to the major movie studios via
long term contracts and lower advertising revenues. Partially
offsetting these declines were Phase 2-related digital cinema services
fees and a 12% increase in Content and Entertainment Segment revenues,
which were driven by content distribution fees.
-- Adjusted EBITDA in the third quarter was $11.0 million, an even match
to the year-ago period. The flat Adjusted EBITDA as compared to the
previous year, despite a 4% decline in total revenues and a decline in
Phase 1 VPF revenues, is primarily the result of positive Adjusted
EBITDA from the Content and Entertainment Group and careful expense
management.
-- Signed commitment letters for a $100 million non-recourse Phase 2
credit facility with GE Capital and Societe Generale.
-- Signed Virtual Print Fee agreements for Phase 2 with Warner Bros. and
Overture Films bringing the total to eight studios signed on to the
Phase 2 plan.
-- Signed first Exhibitor-Buyer Phase 2 Master License Agreement using
National Association of Theatre Owners ("NATO") - Cinema Buying
Group contract.

Bud Mayo, Chief Executive Officer of Cinedigm, stated, "The third quarter saw Cinedigm take advantage of its strengthened balance sheet. At the end of October, we signed commitment letters for a $100 million non-recourse Phase 2 credit facility with GE Capital and Societe Generale. The support of two key Phase 1 lenders clearly shows that the credit market challenges for Cinedigm are abating, and we are pushing ahead to create value for investors. As we finalize consents and amendments to our Phase 2 studio contracts and as we continue to sign Phase 2 exhibitor agreements, we are targeting a spring closing of this facility. In addition, the runaway success of Avatar has heightened excitement about 3-D cinema and increased the already robust 3-D release pipeline. This has further increased exhibitor demand for digital cinema as well as expanded our alternative content pipeline. We look forward to capitalizing on this enthusiasm in the months ahead."
PHASE 2 UPDATE

Mayo added, "The completion of the NATO Cinema Buying Group Exhibitor-Buyer contract was a hallmark event this quarter and the culmination of more than a year of work. R/C Theatres, with its 68 screens, is the first CBG member to use this contract and we have built a pipeline of 3,500 other screens interested in Phase 2 participation. We also installed screens at our first exhibitor-buyer customers in the quarter and have established a new financing approach for exhibitors to own and deploy digital cinema equipment. Cinedigm signed Phase 2 VPF agreements with Warner Bros. and Overture Films and now has VPF agreements with 8 studios. To date we have installed 237 Phase 2 screens and almost 4,000 screens in total."

CORPORATE UPDATE

Mayo concluded, "While significant work remains ahead, the third quarter was one of great progress. In addition to the Phase 2 accomplishments, our Entertainment Group distributed its second independent film, "OPA!", and launched its 3-D Concert Series with the Dave Matthews Band in 3-D which went to 520 theatres, a record for any alternative event we've distributed. Finally, we are also growing our content delivery business as we added several new trailer delivery customers and laid plans to expand our satellite network with proceeds from our financing."

CONFERENCE CALL NOTIFICATION

Cinedigm will host a conference call to discuss its financial results at 9:00 a.m. Eastern on Thursday, February 11, 2010. The conference can be accessed by dialing 877.754.5303 or 678.894.3030 at least five minutes before the start of the call. No passcode is required. The conference call will also be webcast simultaneously and will be accessible via the web on Cinedigm's Web site at investor.cinedigm.com. A replay of the call will be available after 12:00 p.m. Eastern at 800.642.1687 or 706.645.9291, conference ID 3783693. The replay will be accessible through Thursday, February 18th.
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