Acclaim Announces Third Quarter Results; Focuses On Internal Development and Branding Strategy.GLEN COVE Glen Cove, city (1990 pop. 24,149), Nassau co., SE N.Y., on the north shore of Long Island, at the entrance to Hempstead Harbor; settled 1668, inc. as a city 1918. , N.Y.--(BUSINESS WIRE)--July 8, 1999-- Acclaim Entertainment, 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 : AKLM AKLM Acclaim Entertainment, Inc. (stock symbol) ) today announced results for its fiscal 1999 third quarter ended May 31, 1999. The Company reported third quarter net revenues of $80.0 million, an increase of 9% compared with $73.2 million in the third quarter of the prior year. Net earnings for the third quarter were $0.1 million, or diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.00, compared to $5.7 million for the same period in the prior year, or $0.09 per 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. share. Gross revenues for the 1999 third quarter consisted of 39% for Nintendo 64, 32% for PlayStation, 18% for PC and 11% for portables. Revenue was spurred by the release of All Star Baseball All Star Baseball is one of the two most popular baseball board games of the last sixty years, and has been honored as one of the fifty most influential American board games of all time. It was manufactured by Cadaco-Ellis and designed by baseball player Ethan Allen (1904-1993). 2000 and South Park, as well as continued sales success of the Sony PlayStation Sony Playstation - Playstation classic lines. The Company strengthened its financial position, ending the quarter with a cash balance of $95 million. "Our continued goal is to strengthen and foster our internal studios, which are responsible for the implementation of our brand building strategy," said Gregory Fischbach Gregory Fischbach (known to many as Greg Fischbach) founded video game publisher Acclaim Entertainment, Inc. in 1987 and was its CEO until its bankruptcy in 2004. Mr. Fischbach addressed the United States Senate regarding Internet privacy and ESRB ratings. , co-chairman 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. , Acclaim Entertainment. "The success of this strategy is reflected in our ability to garner revenue growth through classic products and sequels." During the quarter, Acclaim shipped All Star Baseball 2000 on the Nintendo 64 and Game Boy Color The Game Boy Color (ゲームボーイカラー , Bust-A-Move 99 for Nintendo 64 and PlayStation, Bust-A-Move 4 and WWF Attitude WWF Attitude is a professional wrestling video game released by Acclaim Entertainment in 1999 for the PlayStation and Nintendo 64. A slightly enhanced port of the game was later released on the Sega Dreamcast. for Game Boy Color, and Machines and South Park for the PC. The success of WWF War Zone WWF War Zone is a professional wrestling video game featuring wrestlers from the World Wrestling Federation. Developed by Acclaim Studios Salt Lake and released by Acclaim Entertainment in 1998 for the PlayStation and Nintendo 64. was further validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. , when released as a PlayStation classic product. Additional European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. releases included Maya the Bee This article is about the novel. For the anime series, see Maya the Bee (TV series). The Adventures of Maya the Bee (Dutch: Maja de Bij; German: Die Biene Maja und ihre Abenteuer; Italian: L'ape Maia; Polish: and DropZone for the Game Boy Color. Acclaim Studios' Fourth Quarter of Franchises The fourth fiscal quarter continues to build on the success of the Company's ability to create new brands and leverage established franchise products coming out of its internal studios. Key titles planned for the quarter include: NFL Quarterback Club NFL Quarterback Club is a Super Nintendo Entertainment System game to feature quarterbacks from the NFL. Troy Aikman and Warren Moon are two examples of what players can use during the game. 2000 for Nintendo 64; Re-Volt for the PC, Nintendo 64, and PlayStation; South Park for PlayStation; WWF Attitude for PlayStation and Nintendo 64; and Shadow Man for PC, PlayStation and Nintendo 64. "Our recent releases show our ability to successfully leverage brands across multiple platforms Refers to two or more operating environments, which typically include the CPU family and operating system. For example, if versions of a program run on Windows and the Macintosh, the software is said to support multiple platforms. and sequel products," continued Fischbach. "Our strategy is threefold: to build one of the largest and most creative internal studios in the business, to create one of the strongest tools and technology groups in the industry, and to develop a portfolio of brands under Acclaim Sports and Acclaim Entertainment that are the strongest in our industry." The Holidays and 2000 The remainder of the calendar year includes the introduction of the Sega Dreamcast and the early stages of development for Sony's and Nintendo's next-generation platforms. Acclaim plans to develop software for the launch of all three platforms, beginning with several games for the launch of the Sega Dreamcast, including NFL Quarterback Club 2000 from Acclaim Sports, and the premiere of a new brand, TrickStyle. Key titles for the holidays and fiscal 2000 first quarter include a host of Acclaim Studio's new offerings and sequels to its most successful brands including: Turok Rage Wars, South Park: Chef's Luv Shack, South Park Rally, NBA Jam NBA Jam is a basketball arcade game created by Midway in 1993. It is the first entry in the NBA Jam series, and was written entirely in assembly language. The main designer and programmer for this game was Mark Turmell. 2000, and Jeremy McGrath Jeremy McGrath (born November 19, 1971, San Francisco, California) is a Supercross racer and has won a record of 72 250cc Main Event wins and captured 7 250cc Championships between 1993 to 2000. He is often referred to as "Showtime" or "The King" meaning, the King of Supercross. SuperCross 2000. Acclaim Entertainment Background Information Acclaim Entertainment, Inc. is a leading worldwide developer, publisher and mass marketer of software for use with interactive entertainment platforms including Nintendo, Sony, and Sega hardware systems, and PCs. Acclaim owns and operates four studios located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the United Kingdom, and publishes and distributes its software directly 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. , the United Kingdom, Germany, France and Australia. Acclaim also distributes entertainment software for other publishers worldwide, and publishes comic books comic book Bound collection of comic strips, usually in chronological sequence, typically telling a single story or a series of different stories. The first true comic books were marketed in 1933 as giveaway advertising premiums. and software strategy guides. Acclaim's headquarters are in Glen Cove, New York Glen Cove is a city in Nassau County, New York on the North Shore of Long Island. As of the United States 2000 Census, the city population was 26,622. Part of the early 20th century Gold Coast of the North Shore, Glen Cove has a diverse population. and Acclaim's common stock is publicly traded on NASDAQ under the symbol AKLM. For more information please visit our website at www.acclaim.net. This release contains 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. . There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Such risks and uncertainties include, among other things, the growth of the installed base of 32-bit, 64-bit, and next generation gaming and PC systems, the timely availability and acceptance of Acclaim's future products for such systems, the competitive environment in the consumer software and related industries, the management of inventories and operating overheads and the related impact upon liquidity should any of these risks occur. These and other risks and uncertainties are detailed from time to time in Acclaim's reports filed with the Securities and Exchange Commission. -0-
ACCLAIM ENTERTAINMENT, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 000s, except per share data)
(Unaudited)
May 31, August 31,
1999 1998
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 94,658 $ 47,273
Accounts receivable - net 24,353 39,177
Inventories 10,638 3,430
Prepaid expenses 13,840 16,571
-------- --------
TOTAL CURRENT ASSETS 143,489 106,451
-------- --------
OTHER ASSETS
Other assets 54,698 53,956
-------- --------
TOTAL ASSETS $198,187 $160,407
-------- --------
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIENCY)
CURRENT LIABILITIES
Trade accounts payable $ 31,445 $ 24,218
Short-term borrowings -- 16
Other current liabilities 96,082 101,317
-------- --------
TOTAL CURRENT LIABILITIES 127,527 125,551
-------- --------
LONG-TERM LIABILITIES
Other long-term liabilities 54,074 56,629
-------- --------
TOTAL LIABILITIES 181,601 182,180
-------- --------
STOCKHOLDERS' EQUITY (DEFICIENCY)
Common stock 1,099 1,053
Additional paid in capital 203,444 189,645
Accumulated deficit (184,274) (209,180)
Treasury stock (3,262) (3,103)
Foreign currency translation adjustment (421) (188)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) 16,586 (21,773)
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIENCY) $ 198,187 $ 160,407
--------- ---------
ACCLAIM ENTERTAINMENT, INC
AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS
(in 000s, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
1999 1998 1999 1998
--------- --------- --------- ---------
NET REVENUES $ 80,047 $ 73,154 $ 320,535 $ 234,774
COST OF REVENUES 36,778 31,369 155,508 108,597
--------- --------- --------- ---------
GROSS PROFIT 43,269 41,785 165,027 126,177
--------- --------- --------- ---------
OPERATING EXPENSES
Marketing and sales 15,908 12,606 54,795 43,866
General and administrative 16,110 12,667 49,294 39,420
Research and development 11,810 10,407 34,544 28,024
Litigation settlement (1,753) -- (1,753) --
--------- --------- --------- ---------
TOTAL OPERATING EXPENSES 42,075 35,680 136,880 111,310
--------- --------- --------- ---------
EARNINGS FROM OPERATIONS 1,194 6,105 28,147 14,867
--------- --------- --------- ---------
OTHER (EXPENSE) (736) (421) (1,807) (2,286)
--------- --------- --------- ---------
EARNINGS BEFORE INCOME TAXES 458 5,684 26,340 12,581
--------- --------- --------- ---------
PROVISION FOR INCOME TAXES 359 5 1,434 126
--------- --------- --------- ---------
NET EARNINGS BEFORE
MINORITY INTEREST 99 5,679 24,906 12,455
--------- --------- --------- ---------
MINORITY INTEREST -- 10 -- --
--------- --------- --------- ---------
NET EARNINGS $ 99 $ 5,669 $ 24,906 $ 12,455
--------- --------- --------- ---------
BASIC EARNINGS PER SHARE $ 0.00 $ 0.11 $ 0.46 $ 0.25
--------- --------- --------- ---------
DILUTED EARNINGS PER SHARE $ 0.00 $ 0.09 $ 0.40 $ 0.22
--------- --------- --------- ---------
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