Acclaim Entertainment Reports Third Quarter Profit.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)--June 30, 1998-- Company Reports Earnings of $0.09 Per Diluted Share; Revenues Increase 76% over FY 97 Third Quarter 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 third quarter of fiscal 1998, ended May 31, 1998. Net revenues for the quarter were $73.2 million, an increase of 76% compared with $41.6 million in the third quarter of the prior year. Net earnings for the quarter were $5.7 million, or $0.09 per diluted share, compared with a net loss of $69.7 million for the same period in the prior year, or a diluted loss per share of $1.40. Gross margin for the quarter was favorably impacted by Nintendo's price reduction on N64 cartridges to third party licensees. For the nine-month period, net revenues were $234.8 million, an increase of 59% compared with $147.3 million in the same period in the prior fiscal year. Net earnings for the nine-month period were $12.5 million, or $0.22 per diluted share compared with a net loss of $105.5 million for the same period in the prior year, or a diluted loss per share of $2.13. Revenue for the quarter was impacted by strong demand for its Acclaim Sports branded titles, including the top selling 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 the Nintendo 64 and GameBoy 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 98 for PlayStation, as well as Super Match Soccer for the PlayStation and PC in Europe. Additional new releases in the quarter included the critically acclaimed 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. for Windows 95, PlayStation and Nintendo 64, Bust-A Move 2 for N64 and Brain Drain brain drain n. The loss of skilled intellectual and technical labor through the movement of such labor to more favorable geographic, economic, or professional environments. for GameBoy. 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. the most recent TRSTS report, which measures sales for video games See video game console. , two of Acclaim's titles were among the top ten console titles for the first two weeks of June. All-Star Baseball 99 currently is the number three console game
A console game is a form of interactive multimedia used for entertainment. at retail, number two for all Nintendo 64 titles. The game received four stars (out of four) from USA Today USA Today National U.S. daily general-interest newspaper, the first of its kind. Launched in 1982 by Allen Neuharth, head of the Gannett newspaper chain, it reached a circulation of one million within a year and surpassed two million in the 1990s. . Jeremy McGrath Supercross 98 is currently number seven on the TRSTS chart, and number three among all PlayStation games List of Playstation games can refer to:
"We remain focused on our product strategy of developing high quality titles and key brands, promoted through targeted marketing initiatives including national television advertisements A television advertisement, advert or commercial is a form of advertising in which goods, services, organizations, ideas, etc. are promoted via the medium of television. ," 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. , 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. "We continue to accrue benefits from our cost reduction strategies as we seek to take advantage of the accelerated growth of PC and next-generation platforms." Gross revenues by platform for the quarter consisted of 50% for N64, 30% for PlayStation, 18% 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% for the quarter. Fischbach indicated the company is positioned 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>. the upcoming Christmas selling season with innovative new titles that garnered enthusiastic retailer response at E3, the industry's most influential trade show. Turok 2, whose predecessor sold over 1.5 million units world wide, was cited by USA Today as one of the show's highlights, and the continued strength and innovation of Acclaim Sports titles, including 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. 99, 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. 99, NHL NHL Non-Hodgkin's lymphoma, see there Breakaway 99 and 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. , all of which feature Hi-Rez(TM) graphics and advanced artificial intelligence, round out the sports lineup. Additionally, a series of games based on Comedy Central's South Park are under development. Acclaim Entertainment Background Information Based in Glen Cove, N.Y., Acclaim Entertainment, Inc. is a leading worldwide publisher and developer of software for Nintendo, Sony, Sega and personal computer hardware systems. Acclaim 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 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
CONSOLIDATED BALANCE SHEETS
(in 000s, except per share data)
May 31, August 31,
1998 1997
ASSETS
CURRENT ASSETS
Cash and cash equivalents $35,600 $26,254
Accounts receivable - net 43,631 18,729
Inventories 5,778 3,546
Other current assets 16,592 20,250
------ ------
TOTAL CURRENT ASSETS 101,601 68,779
------- ------
Other assets 56,672 64,396
------ ------
TOTAL ASSETS $158,273 $133,175
-------- --------
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
CURRENT LIABILITIES
Trade accounts payable $32,672 $17,007
Short-term borrowings 19 643
Other current liabilities 100,458 115,285
------- -------
TOTAL CURRENT LIABILITIES 133,149 132,935
------- -------
LONG-TERM LIABILITIES
Other long-term liabilities 60,430 59,472
------ ------
TOTAL LIABILITIES 193,579 192,407
------- -------
MINORITY INTEREST (79) (186)
STOCKHOLDERS' DEFICIENCY
Common stock 1,039 1,002
Additional paid in capital 184,789 173,373
Accumulated deficit (217,415) (229,870)
Treasury stock (3,103) (2,904)
Foreign currency translation adjustment (537) (647)
----- -----
TOTAL STOCKHOLDERS' DEFICIENCY (35,227) (59,046)
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIENCY $158,273 $133,175
-------- --------
ACCLAIM ENTERTAINMENT, INC
AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(in 000s, except per share data)
Three Months Ended Nine Months Ended
May 31, May 31,
1998 1997 1998 1997
---- ---- ---- ----
NET REVENUES $73,154 $41,616 $234,774 $147,264
COST OF REVENUES 31,369 25,466 108,597 78,019
------ ------ ------- ------
GROSS PROFIT 41,785 16,150 126,177 69,245
------ ------ ------- ------
OPERATING EXPENSES
Marketing and Sales 12,606 12,263 43,866 43,706
General and Administrative 12,667 18,157 39,420 53,029
Research and Development 10,407 9,488 28,024 31,764
Goodwill Writedown --- 25,200 --- 25,200
Litigation Settlements --- 8,300 --- 8,300
Downsizing Charge --- 10,000 --- 10,000
------ ------ ------ ------
TOTAL OPERATING EXPENSES 35,680 83,408 111,310 171,999
------ ------ ------- -------
INCOME (LOSS) FROM OPERATIONS 6,105 (67,258) 14,867 (102,754)
----- -------- ------ ---------
OTHER INCOME (EXPENSE) (421) (2,316) (2,286) (3,608)
----- ------- ------- -------
INCOME (LOSS) BEFORE INCOME
TAXES 5,684 (69,574) 12,581 (106,362)
----- -------- ------ ---------
PROVISION FOR INCOME TAXES 5 805 126 426
- --- --- ---
NET INCOME (LOSS) BEFORE
MINORITY INTEREST 5,679 (70,379) 12,455 (106,788)
----- -------- ------ ---------
MINORITY INTEREST 10 (675) --- (1,242)
-- ----- ----- ------
NET INCOME (LOSS) $5,669 $(69,704) $12,455 $(105,546)
------ --------- ------- ----------
BASIC EARNINGS (LOSS)
PER SHARE $0.11 $(1.40) $0.25 $(2.13)
----- ------- ----- -------
DILUTED EARNINGS (LOSS)
PER SHARE $0.09 $(1.40) $0.22 $(2.13)
----- ------- ----- -------
CONTACT: Acclaim Entertainment, Glen Cove Mike Meyers Sandy De Gennaro 516/650-5000 |
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