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LOS ANGELES, Nov. 19, 2012 (GLOBE NEWSWIRE) -- Seven Arts Entertainment Inc. (OTCQB:SAPX) ("Seven Arts" or the "Company") today announced its results of operations for the quarter ended September 30, 2012. The Company reported a gross profit of $281,385 on total revenue of $1,157,038 for the quarter ended September 30, 2012, compared to a gross profit of $113,397 on revenues of $592,541 for the quarter ended September 30, 2011. The increase was due to the accrual of the sales of DMX's album "Undisputed" released September 11, 2012 through the end of the quarter. The Company's net loss increased to $1,357,621 from $982,288 because of an increase of interest expense to $969,058 from $413,800.
David Michery has also resigned from the board of directors but will continue as a consultant to the Company and be responsible for all music operations of the Company.
Chief Executive Officer Peter Hoffman stated, "We are pleased to have improved our gross profit and total revenue in the quarter ended September 30, 2012 from the comparable quarter of last year. We recorded $921,195 in revenue for our new recorded music division for the 2012 fiscal year, which reflects the results of our first release, DMX's album Undisputed on September 11, 2012.
"Film revenue for the quarter decreased to $229,393 from $592,541 in last year's equivalent quarter, as that previous quarter included the release of The Pool Boys which was a substantially bigger film than this year's release of the art film Drunkboat. The Company has revised its production strategy to reflect continued reductions in film revenue from video and ancillary distribution.