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3DO ANNOUNCES SECOND QUARTER FINANCIAL RESULTS AND PROPOSED FILING FOR STOCK OFFERING

 REDWOOD CITY, Calif., Nov. 5 /PRNewswire/ -- The 3DO Company (NASDAQ: THDO) today released financial results for its second quarter and six month period ended Sept. 30, 1993, and announced its intention to file a registration statement for a proposed stock offering. The net loss for the second quarter ended Sept. 30, 1993, totaled $7.0 million, or 35 cents per share, compared to a net loss of $2.1 million, or 14 cents per share, for the second quarter of the prior year. The company recognized revenue of approximately $2.6 million in the current quarter from development systems shipments to its software licensees.
 For the six month period ended Sept. 30, 1993, the company reported a net loss of $36.9 million, or $1.90 per share. This includes a non- recurring operating charge of $21.4 million resulting from the company's acquisition of NTG, L.P. and NTG, Inc. in April 1993. Only $0.7 million of the charge was a cash expense, with the remaining $20.7 million representing the issuance of 3DO common stock in connection with the acquisition.
 Excluding the non-recurring charge, the net loss for the six month period ended Sept. 30, 1993, would have been $15.6 million. For the same period in the prior year, the company incurred a net loss of $3.7 million.
 The company also announced its intention to file early next week a registration statement with the Securities and Exchange Commission for a proposed public offering of approximately 1 million shares of common stock. All of the shares would be offered by the company. The proceeds would be used for working capital to fund anticipated operating losses, and for general corporate purposes.
 This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering will be made only by means of a prospectus, which the company intends to file with the Securities and Exchange Commission.
 The 3DO Company is located at 600 Galveston Drive, Redwood City, CA 94063, and the general telephone is 415-261-3000.
 NOTE: 3DO and the 3DO logo are trademarks of The 3DO Company.
 THE 3DO COMPANY
 Condensed Statements of Operations
 (In thousands, except per share amounts)
 Three months ended Six months ended
 Sept. 30, Sept. 30,
 (unaudited) (unaudited)
 1993 1992 1993 1992
 Revenue $ 2,616 $ 0 $ 2,616 $ 0
 Cost of Products Sold 1,417 0 1,417 0
 Operating expenses
 Research and
 development 5,454 1,459 10,909 2,798
 Sales and marketing 1,763 197 3,990 275
 General and
 administrative 1,465 500 2,524 697
 Loss from NTG
 acquisition 0 0 21,353 0
 Total operating
 expenses 8,682 2,156 38,776 3,770
 Operating loss (7,483) (2,156) (37,577) (3,770)
 Interest income, net 449 14 665 26
 Loss before provision
 for income taxes (7,034) (2,142) (36,912) (3,744)
 Provision for income taxes 14 0 15 1
 Net loss $(7,048) $(2,142) $(36,927) $(3,745)
 Net loss per share $ (0.35) $ (0.14) $ (1.90) $ (0.25)
 Common and equivalent
 shares 20,003 15,018 19,480 15,018
 Condensed Balance Sheets
 (In thousands)
 Sept. 30, 1993 March 31, 1993
 (Unaudited)
 Assets
 Cash, cash equivalents
 & short term investments $ 32,546 $ 2,827
 Other current assets 1,820 474
 Total current assets 34,366 3,301
 Property and equipment, net 6,991 3,006
 Other assets 557 130
 Total assets $ 41,914 $ 6,437
 Liabilities & Stockholders'
 Equity
 Accounts payable and
 other accrued expenses $ 5,799 $ 3,120
 Deferred revenue 635 968
 Other current liabilities 1,980 388
 Total current liabilities 8,414 4,476
 Deferred revenue from
 stockholders 2,375 2,375
 Other non-current
 liabilities 754 545
 Total liabilities 11,543 7,396
 Stockholders' equity 30,371 (959)
 Total liabilities and
 stockholders' equity $ 41,914 $ 6,437
 -0- 11/5/93
 /CONTACT: Rex Golding, chief financial officer, 415-261-3000; or Cindy McCaffrey, 415-261-3236, or Diane Hunt, 415-261-3214, all of The 3DO Company/
 (THDO)


CO: The 3DO Company ST: California IN: CPR ENT SU: ERN

LW-TM -- SF003 -- 1079 11/05/93 07:56 EST
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Publication:PR Newswire
Date:Nov 5, 1993
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