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Topic: Ballantyne Sells Legacy Film Handling Division Off...

Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 12-15-2007 05:00 PM

Just as I predicted Strong seems to be preparing for a slump looming in it's future. With nothing else other than the NEC digital projector to distribute, selling replacement parts at ever rising prices, and its Service division holding which barely offset the latest quarterly earnings from yet another slump they have recently sold off the Legacy division
"Design And Manufacaturing" which they had bought just about 5 or so years earlier.

Link To Article

Also interesting is this 2007 1st quarter meeting transcript in which the executives have little clue or are not willing to divulge what they really seem to know as to what the other chains have already done or are preparing to do with D-Cinema. Regal in fact has installed Christie ZX projectors in new builds as has Rave Cinemas. Classic Cinemas had a foray into D-Cinema with a 1.3K machine a few years back. I wonder how long it'll be before NEC takes over distribution of projectors...
1st Quarter 2007

Interesting stuff indeed as we watch a major change take place and companies already begin to scramble to attemt to hold positions in order to exist.

Also interesting ... "Upgrades And Downgrades" Here

Ballantyne 3rd Quarter Report... Just like the Titanic..... Here

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Scott Norwood
Film God

Posts: 8146
From: Boston, MA. USA (1774.21 miles northeast of Dallas)
Registered: Jun 99

posted 12-15-2007 05:07 PM

Interesting. So, does that mean that Century and Simplex parts will now come from Design and Manufacturing instead of Strong? What about lamphouses and parts for same?

It is also worth noting that Access Integrated Technologies' stock has been tanking lately.

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Steve Guttag
We forgot the crackers Gromit!!!

Posts: 12814
From: Annapolis, MD
Registered: Dec 1999

posted 12-16-2007 12:49 AM

No Scott, D&M was always a subsidiary. The Century, Simplex, Strong and Ballantyne lines are still made in Omaha. Note, the spotlight revenue is up in 2007 over 2006.

The other thing the various articles point out is that DCinema once again is showing that there is no money in it...the only way to move these things is for free otherwise nobody will buy them. Strong is acknowledging in the articles that their margins are much less on Digital and hopes that the MUCH higher cost of them (DCinema projector vs film) will allow revenues to increase due a much higher number to factor the much lower percentage cost.

BTW...4Q looks to be up for BTN as does 2008 projections. One thing the weak dollar has done is to help out exports to richer nations.

Steve

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 12-16-2007 08:28 AM

quote: Steve Guttag
The other thing the various articles point out is that DCinema once again is showing that there is no money in it...the only way to move these things is for free otherwise nobody will buy them.

Well, thats obvious thats where Strong has placed themselves in the market .... they have to give em away because they are just the distributer of the gear and also because as I pointed out those that run it are ignorant as to what others in the industry are doing or at least they come across that way in the first article. Indeed Strong's ignorance is something that will eventually sink them as will being only a distributer of someone elses product... Their ignorance cost them a bundle in past years with Minneapolis Theater Supply and Regal bankruptcies. You can only mark stuff up so much more and still compete with the other two players. The other DC players, Barco and Christie are selling as much product as they can produce today.... they are not giving them away either. Both Rave and Regal are installing Christie... many others are also. In the few months the ZX has been available there are already over 700 units in service and Access IT is negotiating for another 8000 systems from Christie!! BARCO has offered to sell to CBG members and is offering its mid sized projector with a lens for about 50K. Kinda kills selling the Panasonic doesn't it.
The other factor is that you do not have to purchase your NEC through Strong... NEC has told us in a visit to our facilities that we can deal direct with NEC for the equipment, only the base will come from Strong... and there isn't alot of profit in a thousand dollar pedestal. I don't see the whole NEC/Strong thing lasting alot longer as NEC gets left in the dust.

Mark

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