SC 13G/A 1 b58425a1sc13gza.txt POINT.360 -------------------------------------------------------------------------------- SEC 1746 POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION (11-02) CONTAINED IN THIS FORM ARE SEC 1746 (11-02) NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER. -------------------------------------------------------------------------------- OMB APPROVAL OMB Number: 3235-0145 Expires: December 31, 2005 Estimated average burden hours per response. . . 11 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 1)* POINT.360 -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, no par value -------------------------------------------------------------------------------- (Title of Class of Securities) 730698 10 7 -------------------------------------------------------------------------------- (CUSIP Number) Midwood Capital Management LLC Attn: David E. Cohen One Washington Mall 8th Floor Boston, MA 02108 617-226-2609 With a copy to: Peter M. Rosenblum, Esq. Foley Hoag LLP 155 Seaport Blvd. Boston, MA 02210 617-832-1151 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) December 22, 2005 -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [ ] The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). -------------------------------------------------------------------------------- CUSIP NO. 730698 10 7 13D PAGE 2 OF 15 PAGES -------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). David E. Cohen -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC Use Only -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization USA -------------------------------------------------------------------------------- Number of 7. Sole Voting Power Shares ----------------------------------------------------------------- Beneficially 8. Shared Voting Power 661,831 Owned by ----------------------------------------------------------------- Each 9. Sole Dispositive Power Reporting ----------------------------------------------------------------- Person With 10. Shared Dispositive Power 661,831 -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person 661,831 -------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] -------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11) 7.1% -------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions) IN -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CUSIP NO. 730698 10 7 13D PAGE 3 OF 15 PAGES -------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Ross D. DeMont -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC Use Only -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization USA -------------------------------------------------------------------------------- Number of 7. Sole Voting Power Shares ----------------------------------------------------------------- Beneficially 8. Shared Voting Power 661,831 Owned by ----------------------------------------------------------------- Each 9. Sole Dispositive Power Reporting ----------------------------------------------------------------- Person With 10. Shared Dispositive Power 661,831 -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person 661,831 -------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] -------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11) 7.1% -------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions) IN -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CUSIP NO. 730698 10 7 13D PAGE 4 OF 15 PAGES -------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Midwood Capital Management LLC I.R.S. Identification No. 14-1885029 -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC Use Only -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Delaware -------------------------------------------------------------------------------- Number of 7. Sole Voting Power 661,831 Shares ------------------------------------------------------------- Beneficially 8. Shared Voting Power Owned by ------------------------------------------------------------- Each 9. Sole Dispositive Power 661,831 Reporting ------------------------------------------------------------- Person With 10. Shared Dispositive Power -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person 661,831 -------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] -------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11) 7.1% -------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions) IA -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CUSIP NO. 730698 10 7 13D PAGE 5 OF 15 PAGES -------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Midwood Capital Partners, L.P. I.R.S. Identification No. 27-0060548 -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC Use Only -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Delaware -------------------------------------------------------------------------------- Number of 7. Sole Voting Power 324,383 Shares ------------------------------------------------------------- Beneficially 8. Shared Voting Power Owned by ------------------------------------------------------------- Each 9. Sole Dispositive Power 324,383 Reporting ------------------------------------------------------------- Person With 10. Shared Dispositive Power -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person 324,383 -------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] -------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11) 3.5% -------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions) PN -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CUSIP NO. 730698 10 7 13D PAGE 6 OF 15 PAGES -------------------------------------------------------------------------------- 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Midwood Capital Partners QP, L.P. I.R.S. Identification No. 42-1657728 -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ] -------------------------------------------------------------------------------- 3. SEC Use Only -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [ ] -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Delaware -------------------------------------------------------------------------------- Number of 7. Sole Voting Power 337,448 Shares ------------------------------------------------------------- Beneficially 8. Shared Voting Power Owned by ------------------------------------------------------------- Each 9. Sole Dispositive Power 337,448 Reporting ------------------------------------------------------------- Person With 10. Shared Dispositive Power -------------------------------------------------------------------------------- 11. Aggregate Amount Beneficially Owned by Each Reporting Person 337,448 -------------------------------------------------------------------------------- 12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ] -------------------------------------------------------------------------------- 13. Percent of Class Represented by Amount in Row (11) 3.6% -------------------------------------------------------------------------------- 14. Type of Reporting Person (See Instructions) PN -------------------------------------------------------------------------------- Page 7 of 15 ITEM 1. SECURITY AND ISSUER This joint statement on Schedule 13D relates to the common stock, no par value (the "Common Stock") of POINT.360, a California corporation (the "Issuer"). The address of the Issuer's principal executive offices is 2777 North Ontario Street, Burbank, CA 91504. ITEM 2. IDENTITY AND BACKGROUND This joint statement on Schedule 13D is being filed by David E. Cohen, Ross D. DeMont, Midwood Capital Management LLC, Midwood Capital Partners, L.P. and Midwood Capital Partners QP, L.P., who are collectively referred to as the "Reporting Persons." Messrs. Cohen and DeMont (the "Managers") are the managers of Midwood Capital Management, LLC ("Capital"), which is the sole general partner of each of Midwood Capital Partners, L.P. ("LP") and Midwood Capital Partners QP, L.P. ("QP" and together with LP, the "Funds"). By virtue of their positions, each of the Managers has the power to vote and dispose of the shares of Common Stock held by each of the Funds. Information with respect to each of the Reporting Persons is as follows: (1) (a) David E. Cohen (b) One Washington Mall, 8th Floor, Boston, MA 02108 (c) Mr. Cohen is a manager of Capital. (d) No (e) No (f) United States (2) (a) Ross D. DeMont (b) One Washington Mall, 8th Floor, Boston, MA 02108 (c) Mr. DeMont is a manager of Capital. (d) No (e) No (f) United States (3) (a) Midwood Capital Management, LLC, a Delaware limited liability company (b) One Washington Mall, 8th Floor, Boston, MA 02108 (c) Capital is the sole general partner of, and manages and provides investment advice to, each of the Funds. Page 8 of 15 (d) No (e) No (4) (a) Midwood Capital Partners, L.P., a Delaware limited partnership (b) c/o Midwood Capital Management, LLC, One Washington Mall, 8th Floor, Boston, MA 02108 (c) LP is a private investment fund engaged in the business of investing in securities. (d) No (e) No (5) (a) Midwood Capital Partners QP, L.P., a Delaware limited partnership (b) c/o Midwood Capital Management, LLC, One Washington Mall, 8th Floor, Boston, MA 02108 (c) QP is a private investment fund engaged in the business of investing in securities. (d) No (e) No ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The Reporting Persons acquired beneficial ownership of an aggregate of 661,831 shares of Common Stock for a total of $1,676,151.57 using cash from the Funds. The shares of such Common Stock held by LP and QP are held in margin accounts which from time to time may incur debit balances. Since other securities are held in such margin accounts, it is impracticable to determine the amounts, if any, borrowed with respect to such shares of Common Stock. The cost of borrowing with respect to such margin accounts fluctuates with the broker loan rate and the amount of the debit balance. ITEM 4. PURPOSE OF TRANSACTION The Reporting Persons acquired shares of the Common Stock of the Issuer based on their belief that the Issuer's stock is undervalued and represents an attractive investment opportunity. The Reporting Persons have in the past and may wish to continue to engage in a constructive dialogue with management of the Issuer ("Management"), as well as with other stockholders of the Issuer, regarding new strategies to create and maximize value for the Issuer's stockholders. The Reporting Persons intend to review continuously their equity interest in the Issuer. Depending upon their evaluation of the factors described below, one or more of the Reporting Persons may from time to time purchase additional securities of the Issuer, dispose of all or a portion of the securities then held by such Reporting Person, or cease buying or selling such securities. Any such additional purchases or sales of securities of the Issuer may be in the open Page 9 of 15 market or privately negotiated transactions or otherwise. The factors which the Reporting Persons may consider in evaluating their equity interest in the Issuer's business include the following: (i) the Issuer's business and prospects; (ii) the business strategy and actions of Management and the Board of Directors of the Issuer (the "Board of Directors") to enhance the Issuer's value to its stockholders; (iii) the performance of the Common Stock and the availability of the Common Stock for purchase at particular price levels; (iv) the availability and nature of opportunities to dispose of the Reporting Persons' interests; (v) general economic conditions; (vi) stock market and money market conditions; (vii) other business and investment opportunities available to the Reporting Persons; and (viii) other plans and requirements of the Reporting Persons. Depending on their assessment of the foregoing factors, the Reporting Persons may, from time to time, modify their present intention as stated in this item 4. Except as set forth above, the Reporting Persons do not have at this time any specific plans which would result in (a) the acquisition of additional securities of the Issuer or the disposition of securities of the Issuer; (b) any extraordinary corporate transactions such as a merger, reorganization or liquidation involving the Issuer or any of its subsidiaries; (c) any sale or transfer of a material amount of the assets of the Issuer or of any of its subsidiaries; (d) any change in the present Management or Board of Directors, including any plans or proposals to change the number of term of directors or to fill any existing vacancies on the Board of Directors; (e) any material change in the present capitalization or dividend policy of the Issuer; (f) any other material change in the Issuer's business or corporate structure; (g) any change in the Issuer's charter or by-laws which may impede the acquisition of control of the Issuer by any person; (h) the Issuer's Common Stock being delisted from a national securities exchange or ceasing to be authorized to be quoted in an inter-dealer quotation system or a registered national securities association; (i) causing a class of equity securities of the Issuer to become eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended; or (j) any action similar to those enumerated above. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER (a) In the aggregate, the Reporting Persons beneficially own 661,831 shares of the Common Stock of the Issuer, representing approximately 7.1% of such class of securities. The beneficial ownership of each Reporting Person is as follows: (i) LP beneficially owns 324,383 shares of the Common Stock, representing approximately 3.5% of the class, (ii) QP beneficially owns 337,448 shares of the Common Stock, representing approximately 3.6% of the class, and (iii) Capital, as the sole general partner of each Fund, and Messrs. Cohen and DeMont, as the managers of Capital, each beneficially own 661,831 shares of the Common Stock of the Issuer representing approximately 7.1% of the class. The percentage of the Common Stock beneficially owned by each Reporting Person is based on a total of 9,368,857 shares of the Common Stock of the Issuer outstanding as of September 30, 2005, as reported in the most recent quarterly report of the Issuer on Form 10-Q for the quarter ended September 30, 2005. (b) By virtue of their positions as managers of Capital, each of the Managers has the shared authority to vote and dispose of the shares of Common Stock reported in this joint statement Schedule 13D. - 9 - Page 10 of 15 (c) The following transactions in the Common Stock were conducted by Reporting Persons since the most recent filing of Schedule 13D:

Page 11 of 15 12/20/05 2,925 $1.63 12/21/05 926 $1.74 12/22/05 487 $1.69 12/23/05 3,168 $1.74 12/29/05 55,950 $1.65 12/29/05 1,300 $1.72

Except as provided below, each of the above listed transactions was conducted in the ordinary course of business on the open market for cash. Purchase and sale prices do not reflect brokerage commissions paid. The purchase and sale of 14,452 shares of Common Stock on November 30, 2005, as detailed above, was conducted via a direct transaction between the Funds, at the closing market price of Common Stock on such date, for the purpose of maintaining a pro rata allocation of Common Stock between the Funds. (d) N/A (e) N/A ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER Except for matters described in this Schedule 13D, including the Exhibits attached hereto, there are no contracts, arrangements, understandings, or relationships (legal or otherwise) among the Reporting Persons, or between any Reporting Person(s) and any third party, with respect to any securities of the Issuer, including, but not limited to, transfer or voting any of the securities, finder's fees, joint ventures, loan or option arrangements, put or calls, guarantees of profits, division of profits or losses, or the giving or withholding of proxies. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS Exhibit 1 Joint Filing Agreement by and among David E. Cohen, Ross D. DeMont, Midwood Capital Management, LLC, Midwood Capital Partners, L.P. and Midwood Capital Partners QP, L.P. dated November 9, 2005. - 11 - Page 12 of 15 Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: January 4, 2005 ------------------------------- MIDWOOD CAPITAL PARTNERS, L.P. By: Midwood Capital Management, LLC General Partner By: /s/ David E. Cohen ---------------------------------------- David E. Cohen Manager MIDWOOD CAPITAL PARTNERS QP, L.P. By: Midwood Capital Management, LLC General Partner By: /s/ David E. Cohen ---------------------------------------- David E. Cohen Manager MIDWOOD CAPITAL MANAGEMENT, LLC By: /s/ David E. Cohen ---------------------------------------- David E. Cohen Manager Page 13 of 15 DAVID E. COHEN By: /s/ David E. Cohen ---------------------------------------- David E. Cohen ROSS D. DEMONT By: /s/ Ross D. DeMont ---------------------------------------- Ross D. DeMont

MIDWOOD CAPITAL MANAGEMENT LLC SC 13G/A