DG Systems Revenue Off

DG Systems Revenue Off
Author:
Publish date:

Scott Ginsburg says DG Systems has succeeded at cutting costs by reducing staff and making other infrastructure changes.
The company, which offers digital media exchange services including StarGuide, reported consolidated revenue of $13.1 million in the third quarter, down 16% from the same period last year. It lost $800,000 in the quarter.
But Ginsburg, the company chairman/CEO, also said operating expenses were down 7% compared to the second quarter of this year thanks to recent integration and consolidation moves, and said the fourth quarter should be “seasonally strong.”
He blamed the Q3 drop in revenue on a competitive rate environment, an “overall industry decline in distribution volumes due to a change in customer advertising patterns” and weaknesses in the auto and entertainment industries. He said he believes the decline in business is temporary.
DG Systems recently closed a “dub and ship” facility in Ohio and completed the integration of two facilities in Los Angeles. It has an expansion of its satellite network underway and recently hired a securities firm to explore “strategic alternatives.”
The company stock trades on NASDAQ; it has 338 employees after its recent cuts.

Related