Acclaim Entertainment Reports Results for FY 1997 Third Quarter.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 11, 1997--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 worldwide interactive entertainment company, today reported results for the fiscal third quarter ended May 31, 1997. Net revenues for the quarter ended May 31, 1997 were $41.6 million, compared with $62.6 million in the prior year. Net loss for the quarter ended May 31, 1997 was $69.7 million, or a net loss of $1.40 per share, compared with a net loss of $4.0 million, or a net loss of $.08 per share, in the comparable quarter for the prior year. Weighted average shares outstanding for the quarter ended May 31, 1997 were 49.6 million, compared with 49.9 million in the comparable quarter for the prior year. Included in this quarter's net loss are three special items aggregating $43.5 million, consisting of a $25.2 million partial write-down of goodwill associated with the 1994 acquisition of Acclaim Comics, an $8.3 million litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. charge and a $10.0 million downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc current cost reduction efforts. "The costs related to these special items represent the implementation of difficult but necessary steps as the company nears the end of the transition/rebuilding process that has been undertaken over the past few quarters," said J. Mark Hattendorf, EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition & CFO See Chief Financial Officer. . Sales of Turok: Dinosaur Hunter for the Nintendo 64 console system represented 57 percent of gross revenues during the quarter ended May 31, 1997, the second quarter in which the company marketed product for the popular new 64-bit system. At the same time, software titles for the 32-bit Sony PlayStation Sony Playstation - Playstation and Sega Saturn The Sega Saturn (セガサターン Sega Sataan console systems generated 19 percent of gross revenues compared to 53 percent of revenues in the prior year; sales of software products for multimedia PC systems generated 17 percent of the company's gross revenues compared to 18 percent in the same period a year ago. 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 46 percent of net revenues for the quarter ended May 31, 1997 and 54 percent of net revenues were derived from 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. . 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. for the quarter ended May 31, 1997 excluding the special items described above aggregated $39.9 million and reflect the lower level of spending resulting from the cost reduction efforts that have recently been implemented. Operating expenses for the corresponding period of a year ago were $43.8 million. Scheduled for release for the fourth quarter of fiscal 1997 are NHL NHL Non-Hodgkin's lymphoma, see there Breakaway '98 for the PlayStation and PC Platforms, Constructor for the PC, Fantastic 4 for the PlayStation, Magic: The Gathering for the PlayStation, Bust A Move 2 for the PC, and X-Men: Children of the Atom for the PC. The Company continues to focus upon fewer/better products including the development of a number of titles for the Nintendo 64 platform. Two of the more prominent titles, Extreme G 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. '98, continue on the development track with an expected November release date. Acclaim Entertainment Background Information Acclaim Entertainment, Inc., a worldwide publisher of software for Nintendo, Sega, Sony and personal computer hardware systems, also publishes comic books This is a listing of comic books. See also List of comic creators. Argentina (historieta)
This press release contains forward looking statements. 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 and 64-bit 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 growth, the Company's short- and long-term liquidity, the Company's ability to operate as a going concern and other risks and uncertainties that may be detailed from time to time in Acclaim's reports filed with the Securities and Exchange Commission. -0-
Acclaim Entertainment Inc.
And Subsidiaries
Condensed Statements of Consolidated Operations
(in 000's, except per share data)
Three Months Ended Nine Months Ended
May 31, May 31,
1997 1996 1997 1996
Net revenues $41,616 $62,639 $147,264 $215,012
Cost of revenues 25,466 25,806 78,019 162,522
Gross profit 16,150 36,833 69,245 52,490
Operating Expenses
Selling, advertising,
general and
administrative
expenses 28,476 30,791 90,732 111,184
Research & development
expenses 6,621 7,155 23,588 18,559
Operating interest 417 2,150 1,625 5,255
Depreciation and
amortization 4,394 3,671 12,554 10,867
Goodwill writedown 25,200 -- 25,200 --
Litigation settlements 8,300 -- 8,300 --
Downsizing charge 10,000 -- 10,000 --
Total operating
expenses 83,408 43,767 171,999 145,865
(Loss) from
operations (67,258) (6,934) (102,754) (93,375)
Other (expense) income (2,316) 930 (3,608) 5,463
(Loss) before
income taxes (69,574) (6,004) (106,362) (87,912)
Provision (benefit)
for income taxes 805 (1,800) 426 (28,260)
Net (loss) before
minority interest (70,379) (4,204) (106,788) (59,652)
Minority interest (675) (236) (1,242) (508)
Net (loss) $(69,704) $(3,968) $(105,546) $(59,144)
Net (loss) per common
and common equivalent
share $ (1.40) $ (0.08) $ (2.13) $ (1.20)
Weighted average number
of common and common
equivalent shares
outstanding 49,645 49,940 49,645 49,360
------------------BALANCE SHEET TO FOLLOW------------------------- CONTACT: Acclaim Entertainment, Glen Cove Kathryn Morris or J. Mark Hattendorf, 516/656-5000 |
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