The financial woes at Burbank-based Iwerks Entertainment Inc. continued as the company reported a $13.5-million loss for its fiscal year ended June 30. But after a restructuring, the company now hopes for better times ahead.
Iwerks lost $8.06 million in fiscal 1994. This latest loss came despite a 23% increase in annual revenue, to $45 million from $36.6 million the year before.
A few years ago, Iwerks was heralded as a promising new company with ambitious plans to sell its simulation theaters, virtual-reality attractions and other specialized entertainment venues to theme parks and entertainment centers around the world. But the company has since stumbled, and recently undertook a major restructuring and change of management.
Iwerks cut its work force in fiscal 1995, consolidated operations at its Burbank facility and streamlined management under four new executives. These moves resulted in one-time charges against earnings in fiscal 1995.
The company also took several charges because of its acquisition of rival Omni Films, which increased its litigation costs, bad debts and other expenses.