Acclaim Entertainment Reports Second Quarter Results Revenues Increase 33% Year to Year.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)--April 6, 1998-- 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. Reduced by $6 Million in Same Period 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 its results for the second quarter of fiscal 1998, ended February 28, 1998. Net revenues for the quarter were $69.3 million, an increase of 33% compared with $52.3 million in the second quarter of the prior year. The net loss for the quarter of $1.2 million, or a diluted loss per share of $0.02, compared to a net loss of $16.8 million, or a diluted loss per share of $0.34. For the six month period, net revenues were $161.6 million, an increase of 53% compared with $105.6 million in the same period in the prior fiscal year. Net earnings for the six month period were $6.8 million, or $0.13 per diluted share compared with a net loss of $35.8 million for the same period in the prior year, or a diluted loss per share of $0.72. Revenue for the quarter was impacted by the continued success of 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, the #1 selling football title on the Nintendo 64 platform and Turok: Dinosaur Hunter, the #1 selling third-party N64 Title of 1997, 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. TRSTS industry data. New releases in the quarter included NHL NHL Non-Hodgkin's lymphoma, see there Breakaway '98 for the N64 ; Riven rive v. rived, riv·en also rived, riv·ing, rives v.tr. 1. To rend or tear apart. 2. To break into pieces, as by a blow; cleave or split asunder. 3. : The Sequel to Myst, the first PlayStation title to feature 5 discs; X-Men: Children of the Atom for PlayStation, based on the popular arcade game An arcade game is a coin-operated entertainment machine, typically installed in businesses such as restaurants, pubs, video arcades, and Family Entertainment Centers. Most arcade games are redemption games, merchandisers, video games or pinball machines. ; the coin-op hit Bust-A-Move 2 for GameBoy and PC; Turok: Battle of the Dinosaurs for GameBoy and the retail demo version 1. demo version - An early, barely-functional version of a program which can be used for demonstration purposes as long as the operator uses *exactly* the right commands and skirts its numerous bugs, deficiencies, and unimplemented portions. 2. of the highly-praised Forsaken for·sake tr.v. for·sook , for·sak·en , for·sak·ing, for·sakes 1. To give up (something formerly held dear); renounce: forsook liquor. 2. PC game. "The loss in Q2 and the continued profitability for the year was in line with our guidance to the financial community," 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 key milestones were the reduction of operating expenses by approximately $6 million versus the previous year, the continued improvement of product quality and the closing of our coin-op division, which allowed us to shift development resources to Acclaim Studios and heighten our focus on the home interactive entertainment market. Gross revenues by platform for the quarter consisted of 60% for N64, 26% for PlayStation, 8% for PC and the balance in portables and all other. 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 58% 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. 42%. Fischbach indicated the third fiscal quarter will feature the release of titles capitalizing on the company's brand strategy and emphasis on games developed by the wholly-owned Acclaim Studios group. Key titles planned for the quarter include 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. '99 for N64, previewed as "the most graphically impressive baseball game Noun 1. baseball game - a ball game played with a bat and ball between two teams of nine players; teams take turns at bat trying to score runs; "he played baseball in high school"; "there was a baseball game on every empty lot"; "there was a desire for National League yet seen on a console system" by Next Generation OnLine; Forsaken for N64, PlayStation and PC, a benchmark title for the rapidly-growing 3D accelerated market; Batman and Robin and Supercross '98 Featuring 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. for PlayStation. McGrath, the 7-time AMA (Automatic Message Accounting) The recording and reporting of telephone calls within a telephone system. It includes the calling and called parties and start and stop times of the call. champion, designed bikes and tracks for the game. "We see continued opportunity for the balance of fiscal 1998," said Fischbach. "Hardware sales are up considerably from the previous year and we are maintaining our focus on high quality titles and strong brands supported by targeted marketing efforts." Acclaim Entertainment Background Information Based in Glen Cove, N.Y., Acclaim Entertainment, Inc., is a leading worldwide publisher of software for Nintendo, Sony, Sega and personal computer hardware systems. Acclaim also publishes comic books, operates motion capture studios, and distributes a variety of entertainment software from other publishers worldwide. Visit Acclaim's Web site, www.acclaimnation.com. 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 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)
February 28, August 31,
1998 1997
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 40,417 $ 26,254
Accounts receivable - net 31,076 18,729
Inventories 1,856 3,546
Other current assets 14,570 20,250
TOTAL CURRENT ASSETS 87,919 68,779
Other assets 58,915 64,396
TOTAL ASSETS $ 146,834 $ 133,175
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
CURRENT LIABILITIES
Trade accounts payable $ 25,707 $ 17,007
Short-term borrowings 21 643
Other current liabilities 106,915 115,285
TOTAL CURRENT LIABILITIES 132,643 132,935
LONG-TERM LIABILITIES
Other long-term liabilities 61,545 59,472
TOTAL LIABILITIES 194,188 192,407
MINORITY INTEREST (157) (186)
STOCKHOLDERS' DEFICIENCY
Common stock 1,015 1,002
Additional paid in capital 178,597 173,373
Accumulated deficit (223,084) (229,870)
Treasury stock (3,103) (2,904)
Foreign currency translation adjustment (622) (647)
TOTAL STOCKHOLDERS' DEFICIENCY (47,197) (59,046)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY $ 146,834 $ 133,175
-0-
ACCLAIM ENTERTAINMENT, INC
AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(in 000s, except per share data)
Three Months Ended Six Months Ended
February 28, February 28,
1998 1997 1998 1997
NET REVENUES $ 69,343 $ 52,310 $ 161,620 $ 105,648
COST OF REVENUES 33,227 27,761 77,228 52,552
GROSS PROFIT 36,116 24,549 84,392 53,096
OPERATING EXPENSES
Marketing and Sales 14,162 11,530 31,260 31,443
General and Administration 12,672 18,220 26,753 34,873
Research and Development 9,273 12,184 17,617 22,276
TOTAL OPERATING EXPENSES 36,107 41,934 75,630 88,592
INCOME (LOSS) FROM
OPERATIONS 9 (17,385) 8,762 (35,496)
OTHER INCOME (EXPENSE) (1,229) (173) (1,865) (1,292)
INCOME (LOSS) BEFORE
INCOME TAXES (1,220) (17,558) 6,897 (36,788)
PROVISION (BENEFIT)
FOR INCOME TAXES 15 (380) 121 (380)
NET INCOME (LOSS) BEFORE
MINORITY INTEREST (1,235) (17,178) 6,776 (36,408)
MINORITY INTEREST (5) (336) (10) (566)
NET INCOME (LOSS) $ (1,230) $ (16,842) $ 6,786 $ (35,842)
BASIC AND DILUTED
EARNINGS (LOSS)
PER SHARE $ (0.02) $ (0.34) $ 0.13 $ (0.72)
CONTACT: Acclaim Entertainment Mike Meyers/Sandy De Gennaro, 516/656-5000 |
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