Xebec/I.G Parent Drops Earnings Outlook Due to Money Owed
posted on by Egan Loo
IG Port, the parent company of the anime studios Xebec and Production I.G, has announced on Friday that it is lowering its earnings estimates for the fiscal year ending in May 2010 due to an extraordinary loss totalling 201 million yen (about US$2.2 million). It now reports 146 million yen (US$1.6 million) more in allowance for doubtful accounts receivable (debtors who may not pay their bills to IG Port). In particular, some of the expenses of a theatrical anmation production for which Xebec is partly responsible has not been paid. According to IG Port, repeated demands were made for payment of the expenses, but to no avail.
IG Port also reported 32 million yen (US$350,000) in relocation expenses due to the office move of IG Port and Production I.G. IG Port now projects a loss of 527 million yen (US$5.8 million) for the year. It will be the company's first annual loss since its stocks were publicly traded. The final report for the May 2010 fiscal year is slated to be released on July 9.