Toronto-based globa replicator Cinram recorded consolidated revenue of $167.6 million in the 2012 first quarter compared to $176.7 million in the first quarter of 2011. Revenue from the Pre-recorded Multimedia Products segment fell 5% to $143.1 million from $151 million in the first quarter of 2011.

Cinram replicated 106 million standard DVDs in the first quarter of 2012, compared to 120 million units in 2011. DVD revenue (which includes replication and distribution services) was $108 million in the first quarter of 2012, compared to $117 million in the prior year.

CD revenue was down 9% to $24.4 million from $26.8 million due to lower unit shipments, "consistent with industry declines for this format."

Blu-ray disc replication revenue was $10.7 million in the first quarter of 2012, compared to $7.2 million in the comparable 2011 period.

Revenue from the Video Games segment in the first quarter of 2012 was $9.6 million, down from $11.2 million in 2011, mainly attributable to reduced orders from key customers.

Earnings before interest, taxes and amortization (EBITA) from the Pre-recorded Multimedia Products segment decreased from $-5.7 million in 2011 to $-12.6 million in the first quarter of 2012. While gross margins were fairly consistent with prior year levels, Cinram says the recent strategic review of operations and related refinancing has led to an increase in professional and consulting fees, thereby reducing EBITA.

EBITA generated by the Video Games business segment in the first quarter of 2012 was $0.1 million, or 1% of revenue, compared with $1.5 million, or 13% of revenue, in the comparable period in 2011.

North American Q1 revenue decreased 11% to $92.4 million from $103.8 million in 2011, principally as a result of lower standard DVD unit shipments combined with lower video game distribution revenue, offset by growth in Blu-ray revenues.

However, European revenue was up 3% in the first quarter to $75.2 million from $72.9 million in 2011, primarily resulting from higher revenues from the company?s German location due to an increase in the distribution of standard DVDs and related services.

So, North America accounted for 55% of first quarter consolidated revenue - down from 59% last year - while European revenue accounted for 45% of global revenue - up from 41% in 2011.

On 1 May, the company disclosed that it received written notice from a non-core customer who has decided not to extend the fulfillment services currently provided by Cinram beyond the current term, which expires 15 June 2013. Cinram has provided distribution and related services to this customer since 2008.

"First quarter results in our core business areas are in line with general industry trends, while our Digital Media Group continues to perform strongly in both revenue and margin," commented Steve Brown, CEO. "Our focus continues to be on our strategic alternatives process, which we anticipate will be finalized within the next few months."

Story filed 18.05.12