Blockbuster reiterates doubts as `going concern'

DALLAS

Ailing movie rental chain Blockbuster Inc. again said in regulatory filings Friday that there is a substantial doubt about its ability to continue as a "going concern," standard language foreshadowing a possible bankruptcy.

The language was inserted in an official report on quarterly earnings that it sent to the Securities and Exchange Commission on Friday. The company first used the language in March.

The company has been buffeted by low-cost DVD rental kiosks such has Redbox and mail-order renter Netflix.

It said late Thursday that its net loss in the first quarter to April 4 was $65.4 million, or 33 cents per share. That compares with a net profit of $27.7 million, or 12 cents per share, in the year-ago period.

Excluding severance payments, costs for closing stores and other one-time expenses, the company would have lost 14 cents per share, which matched the forecast of analysts polled by Thomson Reuters.

Revenue fell 13.5 percent to $939.4 million, topping analysts' forecasts.

Blockbuster's shares closed down 9 cents, or 19 percent, at 41 cents Friday and were unchanged in aftermarket trading.

In a statement released Friday, CEO Jim Keyes said, "The operating environment continues to be challenging, but we have made significant progress during the past year in reducing costs."

He said the company had enough cash to last through 2010 by selling off noncore assets outside the U.S. and further cost cuts.

He added the company is having "promising negotiations with strategic and financial partners" and is optimistic about its ability to restructure its finances.