Acclaim Entertainment Reports Net Earnings Growth of 74% for Fiscal 1999.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)--Oct. 14, 1999-- Net Revenues Increase by 32% 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 reported a 32% increase in net revenues which grew to $431.0 million for the fiscal year ended August 31, 1999 versus $326.6 million in the prior year. The Company reported net earnings of $36 million or $0.57 per diluted share, a 74% increase, compared to $21 million or $0.37 per diluted share in the prior year. For the fourth quarter, net revenues grew by 20% to $110.4 million versus $91.8 million in the comparable period a year ago. Net income increased by 35% to $11.2 million or $0.17 per diluted share versus $8.2 million or $0.14 per diluted share in the prior year. "Acclaim strengthened its leadership position this year. We established strong new brands with longevity and capitalized on existing franchises," said Greg Fischbach, co-founder 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. "With the strength of our internal studios, we will increase the number of SKUs and achieve greater market share." During fiscal 1999, Acclaim Studios and Acclaim Sports released more than 30 new products 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. . Of special note was South Park, a new franchise that quickly jumped to number one during the 1998 holiday season, and the top-selling Turok 2, a successful sequel to an established product line. These products were among four Acclaim titles that sold in excess of one million units each. Gross revenues by platform for the year were 59% for N64, 27% for PlayStation, and 14% for PC and other platforms. 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 70% of net revenues and international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. generated 30% for the year. Unique to the industry, Acclaim's internal studios generated 82% of the company's gross revenues during fiscal 1999. As a result, the company has full control over brand extensions, such as Turok and Shadow Man. Also during the year, Acclaim's six studios were unified, streamlining R&D, shared tools and technology. In the fourth quarter, revenues were led by the success of 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. 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. 2000 from Acclaim Sports, and three new brands from Acclaim Studios: TrickStyle, Re-Volt and Shadow Man. The critically acclaimed Shadow Man exemplified the studio's ability to create new characters. Holiday Outlook and Beyond The company anticipates a strong product lineup for the upcoming holiday selling season with titles for each of the major operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. including Sega Dreamcast, whose early market acceptance created a new revenue stream for the company. Acclaim's first Dreamcast title TrickStyle was well received and the company has slated five additional titles for the holidays, including: NFL Quarterback Club 2000, Re-Volt, Shadow Man, Psychic Force psychic force, n in psychoanalysis, the libidinous energy of the id. This is regarded as the primary motivating force in the human personality. Also called psychic energy. 2012 and South Park Chef's LuvShak. Other upcoming titles include Armorines, 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, 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 and the first product in a series targeted to the girl's market. The yet to be named title will feature Mary Kate and Ashley Olsen, the popular television and video stars. Also, the Turok and South Park franchises will be further extended during the current fiscal year with the introduction of Turok Rage Wars, South Park: Chef's LuvShak, and South Park Rally. "In fiscal 2000 we will introduce four new brands, continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. existing brands, and expand our release schedule by more than 40% as we position ourselves for the launch of new hardware platforms Each hardware platform, or CPU family, has a unique machine language. All software presented to the computer for execution must be in the binary coded machine language of that CPU. Following is a list of the major hardware platforms in existence today. See platform. ," said Fischbach. Strategic Company Moves Acclaim Entertainment recently augmented its management team with new hires from the entertainment, technology, and interactive publishing industries. In finance, William Sorenson, from News Corporation, joined as CFO See Chief Financial Officer. and Executive Vice President. In Europe, Barry Jafrato, from Hasbro Interactive Hasbro Interactive was a video game production and publishing subsidiary of Hasbro, the large game and toy company. Hasbro Interactive was formed late in 1995 in order to compete in the computer and video game arena. , was appointed to Managing Director, European Publishing. In the Internet Division, Ojas Rege, a technology expert from Boston Consulting Group, was named to Vice President, Acclaim Online. And, in communications, Claudia Ceniceros, from ABC Television ABC Television may refer to:
Additionally, the company is one of the only publishers developing launch products for all three of the next generation platforms. Acclaim has engines, tools and technologies underway for PlayStation 2 and Nintendo's Dolphin as well as the already released Dreamcast. And, as console platforms prepare to enter the online gaming See gaming. arena, Acclaim established a separate division dedicated to driving an Internet strategy for the company's website and online games. About Acclaim Entertainment 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 six 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 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 http://www.acclaim.com. 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 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 reports filed with the Securities and Exchange Commission.
ACCLAIM ENTERTAINMENT, INC.
AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED EARNINGS
(in 000s, except per share data)
(unaudited)
Three Months Ended Fiscal Year Ended
August 31, August 31,
1999 1998 1999 1998
--------- --------- --------- ---------
NET REVENUES $ 110,440 $ 91,787 $ 430,974 $ 326,561
COST OF REVENUES 45,472 40,062 200,980 148,660
--------- --------- --------- ---------
GROSS PROFIT 64,968 51,725 229,994 177,901
--------- --------- --------- ---------
OPERATING EXPENSES
Marketing and sales 17,451 17,824 72,245 61,691
General and administrative 19,728 14,729 69,022 54,149
Research and development 15,909 9,344 50,452 37,367
Litigation settlement -- -- (1,753) --
--------- --------- --------- ---------
TOTAL OPERATING EXPENSES 53,088 41,897 189,966 153,207
--------- --------- --------- ---------
EARNINGS FROM OPERATIONS 11,880 9,828 40,028 24,694
--------- --------- --------- ---------
OTHER INCOME
(EXPENSE), net 809 (954) (998) (3,240)
--------- --------- --------- ---------
EARNINGS BEFORE INCOME
TAXES 12,689 8,874 39,030 21,454
--------- --------- --------- ---------
PROVISION FOR INCOME TAXES 1,537 638 2,972 764
--------- --------- --------- ---------
NET EARNINGS $ 11,152 $8,236 $36,058 $20,690
--------- --------- --------- ---------
BASIC EARNINGS PER SHARE $ 0.20 $ 0.16 $ 0.66 $ 0.40
--------- --------- --------- ---------
DILUTED EARNINGS PER SHARE $ 0.17 $ 0.14 $ 0.57 $ 0.37
--------- --------- --------- ---------
Acclaim Entertainment, Inc.
and Subsidiaries
Condensed Consolidated Balance Sheets
(in 000s, except per share data)
Aug. 31,
1999 1998
ASSETS
CURRENT ASSETS
Cash and cash equivalents $74,421 $47,273
Accounts receivable - net 84,430 39,177
Inventories 15,565 3,430
Prepaid expenses 14,870 16,571
TOTAL CURRENT ASSETS 189,286 106,451
OTHER ASSETS 55,552 53,956
------- -------
TOTAL ASSETS $244,838 $160,407
------- -------
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIENCY)
CURRENT LIABILITIES
Trade accounts payable $47,298 $24,218
Short-term borrowings -- 16
Other current liabilities 112,597 101,317
TOTAL CURRENT LIABILITIES 159,895 125,551
LONG-TERM LIABILITIES 53,584 56,629
TOTAL LIABILITIES 213,479 182,180
STOCKHOLDERS' EQUITY (DEFICIENCY)
Common Stock 1,121 1,053
Additional paid in capital 207,273 189,645
Accumulated deficit (173,122) (209,180)
Treasury stock (3,262) (3,103)
Accumulated other
comprehensive income (651) (188)
TOTAL STOCKHOLDERS' EQUITY
(DEFICIENCY) 31,359 (21,773)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIENCY) $244,838 $160,407
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