American Film Posts Loss of $1.37 Million

American Film Technologies Inc., a North Hollywood provider of animation and special effects for television and movies, reported a $1.37-million loss for its fiscal second quarter ended Dec. 31.

The loss compared with year-earlier earnings of $305,000. AFT’s revenue in the period fell 18% from a year earlier, to $2.91 million from $3.55 million.

The latest loss, which AFT had predicted, stemmed from several factors, including less work from colorizing black-and-white movies, unexpectedly higher costs in moving certain operations from San Diego to Mexico, and increased reserves for possible legal costs.

AFT also said it needs additional cash to pursue its operating strategies, and that it’s searching for “a strategic investor” to provide more equity capital.

For the first half of its fiscal year, AFT lost $1.2 million, compared with a $557,000 profit a year earlier, and its six-month revenue was virtually flat at $6.9 million.