Acclaim Entertainment, Inc. Reports Profitable Results for FY 2001 First Quarter.Business Editors 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)--Jan. 15, 2001 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) ), a leading video entertainment software developer, today reported profitable results of $10.8 million on net revenues of $72.0 million for its fiscal 2001 first quarter ended December 2, 2000. Net revenues for the first quarter ended December 2, 2000 were $72.0 million, a decrease of $29.2 million, compared to $101.2 million in the first quarter of the prior year. This decrease was anticipated by the Company's fiscal 2001 operating plan, and reflects achievement of its first quarter goal. The anticipated lower sales reflects the Company's revised release schedule and the hardware transition from 32/64-bit consoles to the next generation 128-bit consoles. Net earnings for the first quarter of 2001 were $10.8 million, or $0.18 per diluted share, compared with net earnings of $0.4 million, or $0.01 per diluted share for the same period in the prior year. Profitable performance for the quarter was fueled by several strong title releases, including Dave Mirra Freestyle BMX Dave Mirra Freestyle BMX is a video game released in 2000 featuring Dave Mirra and other professional BMX riders. It was developed by Z-Axis Ltd. and published by Acclaim, and was released on the PlayStation, Dreamcast, Game Boy Color and the Windows PC. for the Sony PlayStation Sony Playstation - Playstation , Sega Dreamcast and Nintendo Game Boy Color The Game Boy Color (ゲームボーイカラー game consoles, ATV (1) (Advanced TV) An early name for the digital TV standard proposed by the Advisory Committee on Advanced Television Service (ACATS). See ACATS. See also ATV Forum. (2) (Analog TV) Refers to the NTSC, PAL and SECAM analog TV standads. Quad Racing for PlayStation and the continuing expansion of the successful Mary-Kate and Ashley video game franchise on PlayStation and Nintendo Game Boy Color game consoles. Significantly contributing to Acclaim's profitability were the effects of the Company's recent business right-sizing which reduced general and administrative expenses, redeployed product development efforts and refocused marketing strategies to effectively reduce its total 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. by $22.7 million (40%) from the first quarter of the prior year. Additional product releases in the first quarter were: HBO Hyperbaric oxygen therapy (HBO) A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber. Mentioned in: Ozone Therapy Boxing, McGrath versus Pastrana: Freestyle Motocross Freestyle Motocross (also known as FMX) is a variation on the sport of motocross in which motorcycle riders attempt to impress judges with jumps and stunts. The two main types of freestyle events are: "The first quarter of fiscal 2001 marks an important turning point for Acclaim," 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. of Acclaim. "Our cost reduction efforts have just begun to be realized, our research and development initiatives have shifted almost entirely towards the next generation of game-consoles and our worldwide sales, marketing and distribution organizations have been streamlined. We are encouraged with our progress this quarter as we move forward." The majority of gross revenues by platform for the quarter consisted of 59% of 32-bit software, 17% of 128-bit software and 14% of portable cartridges. On a geographic basis, North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. generated 77.7% of net revenues and international 22.3% for the quarter, which compares to 63.4% and 36.6%, respectively for the same period a year ago. Mr. Fischbach says upcoming releases for calendar year 2001 will result in a number of significant titles from Acclaim, building on the Company's brand strategy and the continued growth of PlayStation 2 and the much anticipated introduction of two new systems from Nintendo, Game Boy Advance portable system and Game Cube, and Microsoft's XBOX, which are all due out before next Christmas. Key to Acclaim's release strategy will be the soon to be released All-Star Baseball All-Star Baseball is a baseball video game series developed and published by Acclaim Entertainment. The series began in 1998 with the release of All-Star Baseball '99. '02 featuring New York Yankees  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. All-Star
and World Series MVP (Multimedia Video Processor) A high-speed DSP chip from Texas Instruments, introduced in 1994. Officially introduced as the TMS320C80, it combines RISC technology with the functionality of four DSPs on one chip. , Derek Jeter Editing of this page by unregistered or newly registered users is currently disabled until (UTC) due to vandalism. and 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. for the new
PlayStation 2 console. Other key Acclaim brands like Max Sports'
Surfing: The New Wave and Dave Mirra Freestyle BMX 2, Shadowman from
Acclaim Games Not to be confused with Acclaim Entertainment, a defunct company with the same logo.Acclaim Games, based in Beverly Hills, California, is a private online video game company that offers free Massively multiplayer online role-playing games on its website upon registration. and Club Acclaim's Mary-Kate and Ashley, will be expanding within the existing and next generation consoles. "We are excited about the potential growth of the entire video gaming video gaming n. 1. Gambling by means of interactive games of chance played on a video screen. 2. The playing of video games. marketplace and our ability to create good products and effective marketing and distribution initiatives," Mr. Fischbach added, "We will continue to build on the strength of this ever-growing gaming-console base and produce software developed by the combined strength of our internal studios and external development community." Fiscal 2001 Outlook "While we are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the continued positive performance of the Company in fiscal 2001," Mr. Fischbach said, "we do expect a loss in the second quarter of this fiscal year as the holiday retail selling season was disappointing." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its business operating plan and assuming the timely release and expected sell-through of certain titles, continuing support from its lead lender, and giving effect to the continuation of savings from the successfully implemented expense reductions, the Company expects to be profitable and cash flow positive in fiscal 2001. In the event the Company does not achieve its product release schedule, sales assumptions, or any additional continuing expense reductions described above, or if the next generation game-consoles are not released when expected or achieve timely sell through in the quantities anticipated, there can be no assurance that the Company's operations and liquidity will not be materially affected. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains forward-looking statements. The forward-looking statements included here are based on current expectations that involve a number of risks and uncertainties, as well as on certain assumptions. Such statements regarding future events and/or the future financial performance of the Company are subject to certain risks and uncertainties, such as delays in the completion or release of products, the possible lack of consumer appeal and acceptance of products released by the Company, fluctuations in demand, that competitive conditions within the Company's markets will not change materially or adversely, that the Company's forecasts will accurately anticipate market demand and the related impact upon liquidity should any of these risks occur. Assumptions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, the business and operations of the Company are subject to substantial risks and uncertainties that increase the uncertainty inherent in the forward-looking statements. These and other risks and uncertainties are detailed from time to time in Acclaim's reports filed with the Securities and Exchange Commission and should be referred too. Acclaim Entertainment Background Information Based in Glen Cove, N.Y., Acclaim Entertainment, Inc., is a leading worldwide developer, publisher and mass marketer of software for use with interactive entertainment gaming-consoles including Nintendo, Sony, Sega and personal computer hardware systems. 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, Spain, Australia and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . Acclaim also distributes entertainment software for other publishers worldwide, publishes software gaming strategy guides and issues "special edition" comic magazines from time to time to support its time valued brands, Turok and Shadowman. Acclaim's corporate 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 NASDQ under the symbol AKLM. For more information, please visit the Company's website at http://www.acclaim.com or call our investor relations Investor relations The process by which the corporation communicates with its investors. representative Ms. Christie Mazzarella at 516-656-5000. Notice of Conference Call The Company has scheduled a teleconference with the financial community for Tuesday, January 16, 2001, at 5 p.m. (ET), to discuss fiscal 2001 first quarter results and the outlook for fiscal 2001. To listen, the domestic dial-in telephone number is 1-800-388-8975 and from overseas the dial-in telephone number is 973-694-2225. The teleconference will also be carried live via the internet at http://www.vcall.com, which you will need to access at least fifteen minutes early to register, download and install any necessary audio software. The replay will be available on the Vcall website all of the following week. The teleconference also will likewise be rebroadcast until midnight January 17th by dialing 800-428-6051 for domestic calls and 973-709-2089 for overseas calls. You will need to use the PIN number (154051) to access the rebroadcast for both domestic and overseas calls.
ACCLAIM ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except per share data)
(Unaudited)
December 2, August 31,
2000 2000
----------- ----------
Assets
Current Assets
Cash and cash equivalents $ 5,531 $ 6,738
Accounts receivable, net 29,706 3,958
Inventories 5,258 4,708
Prepaid expenses 1,887 2,476
----------- ----------
Total Current Assets 42,382 17,880
----------- ----------
Other Assets 39,960 42,353
Total Assets $ 82,342 $ 60,233
=========== ==========
Liabilities and Stockholders' Deficiency
Current Liabilities
Trade accounts payable 24,025 21,844
Accrued selling expenses 30,319 31,093
Other current liabilities 49,580 41,712
----------- ----------
Total Current Liabilities 103,924 94,649
----------- ----------
Long-Term Liabilities 59,675 59,564
Total Liabilities 163,599 154,213
----------- ----------
Stockholders' Equity (Deficiency)
Common stock 1,146 1,133
Additional paid in capital 215,324 213,940
Accumulated deficit (294,061) (304,866)
Treasury stock (3,338) (3,338)
Accumulated other comprehensive
income (328) (849)
----------- ----------
Total Stockholders' Deficiency (81,257) (93,980)
----------- ----------
Total Liabilities and
Stockholders' Deficiency $ 82,342 $ 60,233
=========== ==========
See notes to consolidated financial statements
ACCLAIM ENTERTAINMENT, INC AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(In thousands of dollars, except per share data)
(Unaudited)
Three Months Ended
December 2, November 30,
2000 1999
--------------------------
Net revenues $ 72,039 $101,153
Cost of revenues 24,058 40,016
-------- --------
Gross profit 47,981 61,137
Operating expenses:
Marketing and selling 11,962 26,087
General and administrative 10,598 15,484
Research and development 11,456 15,079
-------- --------
Total operating expenses 34,016 56,650
-------- --------
Earnings from operations 13,965 4,487
Other income (expense), net (2,909) (2,273)
-------- --------
Earnings before income taxes 11,056 2,214
Provision for income taxes 251 1,780
-------- --------
Net earnings $ 10,805 $ 434
======== ========
Basic earnings per share $ 0.19 $ 0.01
======== ========
Diluted earnings per share $ 0.18 $ 0.01
======== ========
See notes to consolidated financial statements.
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