SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________
[TYPE]
FORM 8-K
[DESCRIPTION]
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 9, 1996
IWERKS ENTERTAINMENT, INC.
__________________________
(Exact name of registrant as specified in its charter)
Delaware 0-22558 95-4439361
(State or other jurisdiction(Commission (IRS Employer
of incorporation) File Number) Identification No.)
4540 West Valerio Street
Burbank, California 91505
(Address of principal executive offices)
(818) 841-7766
(Registrant's telephone number)
The Exhibit Index to this document is located on Page 4.
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ITEM 5. OTHER EVENTS
Reference is made to the press release of Registrant, issued on October 9,
1996, which contains information meeting the requirements of this Item 5 and
which is incorporated herein by this reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Press Release, issued October 9, 1996, concerning Registrant's
anticipated financial results.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
October 15, 1996 IWERKS ENTERTAINMENT, INC.
By: /s/ Bruce C. Hinkley
-----------------------------
Bruce C. Hinckley
Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Item Description Page No.
_____ ___________ ________
99.1 Press Release issued October 9, 1996
concerning Registrant's anticipated
financial results. 5
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Exhibit 99.1
DISTRIBUTION: Business/Entertainment Editors
LENGTH: 579 words
HEADLINE: Iwerks Entertainment Anticipates Profitable First Quarter
DATELINE: BURBANK, Calif.
BODY:
Oct. 9, 1996--Iwerks Entertainment Inc. (NASDAQ NM:IWRK) today announced
that it anticipates earning a modest profit for the fiscal 1997 first quarter
ended Sept. 30, 1996.
In addition, the company's balance sheet remains strong, with more than
$22 million in cash and less than $ 3 million in long-term debt. The company
expects to report definitive results for the quarter during the week of
Oct. 28, 1996.
Roy A. Wright, co-chairman and chief executive officer of Iwerks, stated:
"We expect our results for the first quarter to continue to reflect the
positive impact of the turnaround strategy adhered to by management throughout
fiscal 1996. Our fundamental business continues to be strong, and we have
confidence in our operating strategies.
"Shorter-term, we have recently experienced some customer-related delays
with regard to recently signed simulation theatre contracts in Asia." Wright
continued. "These delays will result in a shortfall in revenues and earnings
from analyst consensus estimates for the second quarter.
"In addition, as previously disclosed, our principal sponsorship agreement
for our Reactor portable simulation theatres concluded on schedule after two
successful years coincidental with the normal winter hiatus for this program,"
he added. "We are currently evaluating a number of possibilities for alternate
sponsors. However, if such an agreement were signed it would not likely take
effect until the third quarter.
"Despite these recent events," Wright noted, "we continue to expect to
report a profit for fiscal 1997."
Iwerks Entertainment is one of the world's leading producers of high-tech,
multi-sensory experiences such as ride simulation, 2D and 3D giant-screen
theatres, 360-degree video dance clubs and other immersive attractions.
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Serving prestigious entertainment, information, and marketing providers,
over 250 Iwerks attractions can be found worldwide at Location-based
entertainment centers, amusement parks, family entertainment centers, shopping
centers, casinos, resorts, nightclubs, restaurants, museums, fairs, festivals,
and more.
With the exception of the historical information, the matters discussed
above include forward-looking statements that involve risks and uncertainties.
Among the important factors that could cause actual results to differ from
those indicated in the forward-looking statements are costs of sales and the
ability of the company to maintain pricing at a level necessary to maintain
gross profit margins, the level of selling, general and administrative costs,
the performance by the company under its existing purchase contracts and the
ability to obtain new contracts, the success of the company's owned and
operating strategy, the success of the company's film software and the effects
of competition.
Note to Editors: For this company's past press releases go to
HTTP://www.businesswire.com/cnn.
kvc/sf/blm/sf/mi/sf
CONTACT: IWERKS Entertainment Inc.
Roy A. Wright, 818/841-7766
Bruce C. Hinckley, 818/841-7766
or
Silverman Heller Associates
Eugene G. Heller, 310/208-2550
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