SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 31, 1998
IWERKS ENTERTAINMENT, INC.
(Exact Name of Registrant as Specified in 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 91505-1045
(Address of Principal Executive Offices)
(818) 841-7766
(Registrant's Telephone Number)
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ITEM 5. OTHER EVENTS
Reference is made to the press release of Registrant, issued on March 31,
1998, which contains information meeting the requirements of this Item 5, and
which is incorporated herein by this reference. A copy of this press release
is attached to this Form 8-K as Exhibit 99.1.
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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.
March 31, 1998 IWERKS ENTERTAINMENT, INC.
By: /S/ BRUCE HINCKLEY
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Bruce Hinckley
Chief Financial Officer
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EXHIBIT INDEX
EXHIBITS PAGE NUMBER
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99.1 Press Release dated March 31, 1998.
Burbank, CA, March 31, 1998 -- Shareholders of Iwerks Entertainment, Inc.
(NMS:IWRK) today rejected the company's proposed merger with Showscan
Entertainment Inc. (NMS:SHOW) in a vote announced at Iwerks' annual meeting of
shareholders.
"We are disappointed with the results, but are still prepared to move forward
with our strategy and plans for growing Iwerks," said Charles Goldwater,
Chairman and Chief Executive Officer of Iwerks. "The tactics and timing of
results may change as a result of this vote, but our mission -- to firmly
establish this company as a full-service provider of entertainment attractions
- -- remains the same."
He added, "In pursuing our goals, we will be responsive to the concerns of our
stockholders who have spoken today through their votes."
Mr. Goldwater said that Iwerks' future "begins with looking at the company from
an expanded perspective -- as an entertainment company built on a strong
foundation of superior hardware and technology." He cited five specific areas
of strategic emphasis for the company moving forward:
- -- improving cost efficiency;
- -- accelerating and expanding sales activities;
- -- improving the quality of and investment return on Iwerks' film assets;
- -- extending the Iwerks brand through stepped-up marketing efforts;
- -- strengthening the company's management ranks.
"There are certainly a number of challenges looming ahead, but we already are
moving aggressively to make good things happen," he said.
With respect to the other business before the shareholders' meeting, Mr.
Goldwater was elected to the Board of Directors to serve a three-year term, and
proposed amendments to Iwerks' stock option plan were defeated.
Iwerks is one of the world's leading providers and distributors of immersive
entertainment attractions such as 2-D and 3-D ride simulation, 2-D and 3-D
giant screen theaters, 360-degree video dance clubs and other attractions.
Serving prestigious entertainment, information and marketing providers, more
than 250 Iwerks attractions can be found worldwide at location based
entertainment centers, casinos, resorts, nightclubs, restaurants, museums,
fairs, festivals and more. Visit Iwerks on the Internet at WWW.IWERKS.COM.
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FORWARD-LOOKING STATEMENT DISCLOSURE
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With the exception of the historical information, certain matters discussed
herein are forward-looking statements within the meaning of Section 27A of the
Securities Act. Such forward-looking statements are subject to various risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors, including the following: (i) the
Company's performance under its existing contracts and its ability to achieve
future contracts, (ii) the Company's ability to generate future revenues,
control the level of costs of sales, the ability of the Company to maintain
sales prices at levels that maintain gross margins, and the level of selling,
general and administrative expenses, (iii) the success of the Company's film
licensing, distribution and owned and operated strategies, (iv) the Company's
ability to secure additional sponsors for its Reactors or alternative sources
of revenues, (v) the success of the Company's film software, (vi) general
economic conditions in the United States and the Company's international
markets, and (vii) the other factors discussed under the caption, "Risk
Factors," in the Company's filings with the Securities and Exchange Commission.
The Company does not ordinarily make projections of future operating
performance and undertakes no obligation to publicly release the result of any
revisions to the projections or any other forward-looking information included
herein that may be made to reflect any future events or circumstances.
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Contact:
Iwerks Entertainment, Inc.
Bruce Hinckley, 818/840-6192
or
BSMG Worldwide
Joe Kessler, 310/442-2532
