Live Entertainment Inc., a Van Nuys home-video company, posted a $61.1-million loss in the second quarter that ended June 30 due to higher-than-expected returns of its "Teenage Mutant Ninja Turtles" video and slower sales of videos overall.
The loss contrasted with a $2.1-million profit a year earlier. Live's revenue fell 18%, to $67.3 million from $82.2 million.
In the six months that ended June 30, Live lost $59.3 million, while revenue declined 4% to $153.3 million. Live earned $3.9 million on $159.7 million in revenue during the same period a year earlier.
The company said results for the latest quarter and six-month period were also hurt by its unprofitable Lieberman Enterprises unit, which Live sold last month, and by weak sales in its retail division.
Last month, Live proposed a merger with Carolco Pictures Inc., a Los Angeles film company that owns 54% of Live. Under the terms, Live shareholders would receive $21.50 worth of stock in a new company formed by the merger for each share of Live. The deal values Live at $263 million.
Carolco has not yet responded to the offer.