3DO Announces Financial Results For First Quarter.REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--Aug. 8, 1995--The 3DO Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : THDO) today released financial results for its first fiscal quarter, ended June June: see month. 30, 1995, reporting revenues of $7.2 million, representing a 45 percent increase compared to $4.9 million for the first quarter in the prior fiscal year. The net loss for the most recent quarter totaled $7.9 million, or $0.32 per share, compared to a net loss of $16.1 million, or $0.78 per share, for the comparable period in the prior year. The revenue increase is primarily due to increases in royalties and pressing fees ($3.4 million, a 41 percent increase over the comparable quarter in the prior fiscal year) and publishing revenues ($2.0 million, compared to $0.1 million in the comparable quarter in the prior fiscal year). Gross profit increased from $3.5 million to $6.0 million, a 72 percent increase over the comparable period in the prior year, as a result of increases in the company's higher margin revenue components, royalties and pressing fees, and publishing. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $13.7 million reflect a reduction of $5.9 million or 30 percent compared to the first quarter in the prior fiscal year. These reductions are primarily attributable to the elimination of the share incentive program and improved operating controls. The company raised approximately $16.6 million ($14.3 million during the quarter) in an equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. and ended the quarter with cash equivalents of approximately $20.2 million. Having completed the financing as planned, the company is in a strong position as it heads into the typically busy fall and winter quarters the quarters of troops during the winter; a winter residence or station. See also: Winter . To date, 3DO(TM) licensed product sales to consumers have totaled over half a billion dollars and hardware system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. to retailers exceeded 700,000 units worldwide. During the quarter, LG Electronics and Panasonic
In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. development and publishing arm, released its third software title Zhadnost: The People's Party People's party: see Populist party. (TM) and several highly anticipated third-party titles made their way to retail including, GEX GEX Global Exchange (eCommerce/electronic data interchange) GEX Gas Exchange Experiment GEX Government Employees Exchange GEX Grupo Empresarial Exito (TM), Syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism (TM) and Slam & Jam '95(TM). In addition, the company unveiled its next-generation M2 technology that is designed to give users a seamless upgrade path to 64-bit gaming. "We continue to execute our business strategy with consistent focus and streamlined operations," said Trip Hawkins William M. 'Trip' Hawkins III (born December 28[1], 1953) is a Silicon Valley American entrepreneur and founder of Electronic Arts, The 3DO Company and Digital Chocolate. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of The 3DO Company. "As the market moves from 16-bit to 32-bit, we are well positioned with our low price point, vast software library, and upgrade path to 64-bit technology to deliver the system with the best value to consumers." Since the unveiling of the M2 technology, 3DO has released its first working M2 development systems to a core team of early software developers. Studio 3DO has also begun development of several M2 software titles. More information on the M2 technology will be announced in the near term. For today's 3DO systems, Studio 3DO is gearing up to release a number of titles coming in the second half of calendar 1995. Zhadnost will soon be followed by a stream of titles combining a unique blend of creativity and playability that include BladeForce(TM), Killing Time(TM), Captain Quazar Captain Quazar is a science fiction third-person action game by developer 3DO, first published in 1995 by Panasonic. Though initially released as an exclusive for 3DO's Interactive Multiplayer console, when the system met with little public success, Captain Quazar (TM) and BattleSport(TM). More than 75 new titles are scheduled to be released from both Studio 3DO and third-party developers  It has been suggested that First-party developer, Second-party developer be merged into this article or section. for the 3DO system by year's end.The 3DO Company (NASDAQ: THDO), headquartered in Redwood City, Calif., creates cutting-edge technology and develops and publishes software, under the label Studio 3DO, for the advanced interactive entertainment market. With offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia,
the company is a leader in the 32-bit interactive entertainment
industry. The company's award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" design, the 3DO Interactive
Multiplayer system, is available worldwide from Matsushita Electric
Industrial Co. (MEI), Panasonic and LG Electronics (GoldStar). Studio
3DO, the company's software operation, is focused on producing
titles that take advantage of the advanced capabilities of the 3DO
architecture. -0-Note to Editors: 3DO, the 3DO logos, Zhadnost, BladeForce, Killing Time, Captain Quazar, BattleSport and Interactive Multiplayer are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. registered trademarks of The 3DO Company. All other brand or product names are trademarks or registered trademarks of their respective owners. 3DO and Interactive Multiplayer are trademarks of The 3DO Company. -0-
THE 3DO COMPANY
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
June 30,
(Unaudited)
1995 1994
Revenues $ 7,185 $ 4,940
Cost of revenues 1,205 1,468
-------- --------
Gross profit 5,980 3,472
Operating expenses:
Research and development 9,362 7,819
Sales and marketing 2,351 4,436
General and administrative 2,033 1,973
Stock incentive -- 5,380
-------- --------
Total operating expenses 13,746 19,608
-------- --------
Operating loss (7,766) (16,136)
Net interest and other
income (expense) (26) 42
-------- --------
Loss before provision for
income and foreign
withholding taxes (7,792) (16,094)
Provision for income and
foreign withholding
taxes 136 18
-------- --------
Net loss $ (7,928) $(16,112)
======== ========
Net loss per share $ (0.32) $ (0.78)
======== ========
Common and common equivalent
shares 24,479 20,667
======== ========
Consolidated Condensed Balance Sheets
(In thousands)
June 30, 1995 March 31, 1995
(Unaudited)
Assets
Cash, cash equivalents and
short-term investments $20,164 $14,346
Accounts receivable, net 7,604 5,811
Other current assets 3,122 2,616
------- -------
Total current assets 30,890 22,773
Property and equipment, net 9,567 10,619
Other assets 1,687 769
------- -------
Total assets $42,144 $34,161
======= =======
Liabilities & Stockholders' Equity
Accounts payable and other
accrued expenses $ 8,575 $ 7,849
Deferred revenue 468 802
Current portion of capital
lease obligations 1,691 1,631
Hardware incentive and other
current liabilities 5,339 1,665
------- -------
Total current liabilities 16,073 11,947
Deferred revenue 285 347
Capital lease obligations, net
of current portion 2,043 2,467
Hardware incentive and other
liabilities 1,261 3,715
------- -------
Total liabilities 19,662 18,476
Stockholders' equity 22,482 15,685
------- -------
Total liabilities and
stockholders' equity $42,144 $34,161
======= =======
CONTACT: The 3DO Company Tuesday Uhland, 415/261-3142 Paul Milley, 415/261-3159 |
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