Lionsgate swings to profit

Despite a $65 million drop in revenue, Lionsgate reported net income of $12.2 million for its fiscal first quarter, swinging into the black from last year's first-quarter loss of $64.1 million.Both its decreased revenue and profitability defied Wall Street, which had expected net losses but not a 20% drop in revenues.Reasons varied from reduced theatrical marketing costs to an uptick in TV business, but the Canadian company couldn't resist pointing out its "decreased costs associated with shareholder activism," no doubt a reference to the company's highly public battle with corporate raider Carl Icahn, who sought to gain a dominant stake in the company for much of last year.Lionsgate also attributed $4.8 million in profits to its share in cable channel EPIX, which contributed to a $12 million loss in last year's first quarter.Net income per common share in Q1 reached $.09 on 137 million weighted average common shares outstanding. Last year's first quarter saw a basic net loss per common share of $.54 on 118.2 million weighted average common shares."Our rapid and accelerating transition from traditional to new digital businesses, both domestically and internationally, is helping to drive our progress and positioning us for future growth, and we're very excited about our upcoming slates that highlight our momentum in building new film and TV franchises as well as extending our existing brands," said Lionsgate co-chairman and CEO Jon Feltheimer. Contact Rachel Abrams at Rachel.Abrams@variety.com