7th Level Reports First Quarter Results.DALLAS--(BUSINESS WIRE)--May 16, 1997--7th Level, Inc. (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 : SEVL) today announced results for the quarter ended March 31, 1997. Net revenues were $4.2 million compared to $4.4 million in the quarter ended March 31, 1996. Net loss for the quarter was $6.5 million or ($0.48) per share compared with a loss of $4.9 million or ($0.37) per share in the same quarter of 1996. "7th Level's past and current results reflect the need for a new strategy and focus on financial goals," said Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Schupak, 7th Level's new chairman. "Our mandate is to develop and implement a new strategic plan, no later than the end of July July: see month. 1997, and to set and achieve goals that will help increase shareholder value." "This company is rich in technology and rich in talent," Mr. Schupak continued. "The development of an effective strategy requires that we focus on a few areas in which we have a competitive advantage and convert that competitive advantage into profits. We expect to be able to build on our technology and key strategic relationships. Our intent is to engage our human and technical assets in profitable activities before year end. "There is a major transition underway at 7th Level," stated Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Ezrin, 7th Level's new 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. . "We are in the process of reorganizing the Company and have implemented a new management system that conveys a new level of authority, responsibility and accountability to operating managers. This system will enable accurate planning as well as cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. . At the same time, a key requirement of our games group is to establish accurate production and release schedules. This will assure that marketing efforts and expenditures will not be diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , as they will be introduced to the market in time frames supportive of maximum sell through." "We are in the process of reviewing completion and release dates for the titles currently in production," continued Mr. Ezrin, "and have concluded that Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. will ship later in the year than June June: see month. as heretofore forecast. The Meaning of Life will ship in the fourth quarter in time for holiday sales and we are examining alternatives for Krondor and The Gatherer." The Company continued to show good results in its efforts to reduce overhead. 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. were $1 million below the previous quarter, for the second consecutive quarter. This follows a major cost reduction program started in mid- mid- pref. Middle: midbrain. 1996 . "We are focusing our near-term efforts on successfully completing the projects that were in process when the management change occurred," said Mr. Ezrin. "One of our top priorities is to complete the four interactive Barney barney - In Commonwealth hackish, "barney" is to fred as bar is to foo. That is, people who commonly use "fred" as their first metasyntactic variable will often use "barney" second. The reference is, of course, to Fred Flintstone and Barney Rubble in the Flintstones cartoons. titles we are developing for Microsoft (NASDAQ: MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ) and we are making good progress on that showcase project." 7th Level defines digital entertainment and interactive technology. By leveraging its proprietary technologies and production processes the company creates interactive multimedia products for consumers and solutions for its strategic partners. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This news release contains forward-looking statements which are based upon current expectations and involve a number of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the company. These factors include the company's ability to complete new products at planned costs and on planned schedules, market acceptance of the company's products and the success of the company's cost reduction strategy. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements which may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. -0-
7th Level, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended
March 31, March 31,
1997 1996
---------------------------------
Net revenues $4,197,836 $4,373,088
Cost of revenues 2,666,135 1,036,762
---------------------------------
Gross profit 1,531,701 3,336,326
Operating expenses:
Research & product dev. 4,587,780 4,942,131
Sales & marketing 1,903,345 2,635,297
General & admin. 1,573,775 1,082,678
Amortization of
intangible assets 27,159 29,677
---------------------------------
Operating loss (6,560,358) (5,353,457)
Interest and other, net 99,112 431,489
---------------------------------
Net loss ($6,461,246) ($4,921,968)
=================================
Loss per common share ($0.48) ($0.37)
=================================
Weighted average common
and common equiv. shares 13,596,722 13,225,624
=================================
7th Level, Inc.
Condensed Consolidated Balance Sheets
March 31, December 31,
1997 1996
ASSETS ---------------------------
Cash and short term investments $11,027,856 $15,283,842
Accounts receivable, net 4,388,560 6,130,903
Inventories 420,341 571,545
Office building for sale 5,497,122 5,117,222
Other current assets 1,640,754 1,776,446
---------------------------
Total current assets 22,974,633 28,879,958
Fixed assets, net 7,392,307 7,839,278
Intangible assets, net 809,909 1,130,095
Other assets 670,451 1,083,603
---------------------------
Total assets $31,847,300 $38,932,934
===========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $7,013,334 $7,302,434
Notes payable, current portion 5,384,356 5,633,675
Other current liabilities 209,264 192,451
---------------------------
Total current liabilities 12,606,954 13,128,560
Notes payable, long term 551,020 675,724
Other 500,552 476,263
---------------------------
Total liabilities 13,658,526 14,280,547
Total stockholders' equity 18,188,774 24,652,387
---------------------------
Total liabilities & stockholders' equity $31,847,300 $38,932,934
CONTACT: 7th Level, Dallas Investor Relations Investor relations The process by which the corporation communicates with its investors. : Gary Fishman or David Pasquale, 212-685-6890 or Company Contact: David Craig David Craig may refer to:
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion