Iwerks Entertainment

Iwerks Entertainment Inc. in Burbank returned to profitability in its fiscal first quarter after posting a $13.5-million loss in its last fiscal year. The company, which designs special-format movie theaters, simulation rides and virtual reality attractions, earned $141,000 in the quarter ended Sept. 30, compared to a loss of $786,000 in the year-earlier quarter. Its revenue fell 8% to $10.1 million from $11 million.

Iwerks Entertainment Inc. in Burbank said it has tentatively agreed to settle all pending shareholder class-action lawsuits against it. The agreement calls for Iwerks to pay $1.75 million and to issue 250,000 shares of its common stock and 500,000 warrants to purchase common stock at an exercise price of $2 below the average trading price during a specified time period. The company said the cash amount would be covered by its insurance.

The executive shake-up at financially ailing Iwerks Entertainment Inc. continued as Stanley Kinsey resigned as chairman and a director of the ride simulation and virtual reality company. Kinsey had already given up the chief executive position at the Burbank-based company in May, replaced by former Chief Operating Officer Roy Wright. In June, Iwerks replaced its chief financial officer, G. Edward Smith, with Francis Phalen. Iwerks reported a $13.5-million loss in the fiscal year ended June 30.

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.

Iwerks Entertainment Inc., a Burbank producer of simulation rides, specialty theaters and virtual reality attractions, said it has secured contracts worth more than $12.2 million for its TurboRide theaters and films. The sales were made in the United States, the Middle East, Australia and Asia, and include a recent contract with Dollywood, Dolly Parton's theme park in Tennessee.

In a move the troubled company says will save more than $1 million, Iwerks Entertainment Inc. announced plans to integrate its touring technologies division into its Burbank headquarters. In addition, President and Chief Executive Officer Roy A. Wright announced that Thomas Gimple, president of the touring technologies division, will become executive vice president of operations, responsible for company manufacturing and operations.

Iwerks Entertainment Inc., unprofitable for the past eight quarters, has named a new executive vice president and chief financial officer, the latest moves in an ongoing corporate overhaul. Francis Phalen, 55, most recently senior vice president and chief financial officer of Aura Systems Inc., a high-tech firm based in El Segundo, replaced G. Edward Smith, who served as interim chief financial officer since December, after the resignation of Deborah Miao.

Iwerks Entertainment, a Burbank producer of virtual-reality and ride-simulation technology for movie theaters, said its losses for the third quarter were nearly 10 times higher than during the same three-month period a year earlier. The company lost $8.61 million in the quarter ended March 31, compared to a year-earlier loss of $892,000. Iwerks said $5.6 million of the loss resulted from the write-down of the value of some of its film software. Second-quarter revenues were up slightly, to $10.

Iwerks Entertainment Inc., a Burbank-based producer of specialty theaters and simulation rides, said a class-action lawsuit alleging violations of federal securities laws has been filed against the company in U.S. District Court for the Central District of California. Iwerks said the complaint was brought by an investor who owns 100 shares of the company's common stock. The compensation sought by the shareholder was not specified in the suit, said G.