Acclaim Entertainment reports fiscal year 1996 results.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)--Dec. 17, 1996--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 results for Fiscal Year 1996 and the fourth quarter, which ended Aug. 31, 1996. Gross revenue for the year ended Aug. 31, 1996, was $376 million. Net revenue for the year, before a $90 million special cartridge (1) See phono cartridge. (2) A removable storage module that contains magnetic disks, optical discs, magnetic tape or memory chips. Cartridges are inserted into slots in the drive, printer or computer. video charge, was $252 million and after the charge was $161 million. Net loss for the year and fourth quarter was $221 million and $162.2 million, respectively. The loss for the year is attributable, in part, to the special cartridge video charge associated with the Company's exit from the 16-bit cartridge video game business as well as significant price concessions and other allowances granted to customers relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , write-offs of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. royalties, severance The act of dividing, or the state of being divided.The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges associated with a workforce reduction and the reduction of inventory to its net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta adjustments in the fourth quarter totaled approximately $138.3 million and were a significant contribution to the fourth-quarter loss. "Results for 1996 were clearly disappointing, and we have no intention of repeating that performance," 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. , Acclaim co-chairman and chief executive officer, said. "For that reason, we have made organizational, procedural and personnel changes, which we believe will strengthen our company on both a strategic and tactical level going forward. Further, we will continue to make necessary changes as appropriate in order to return our Company to profitability." Acclaim Entertainment Background Information Acclaim Entertainment, Inc., a leading worldwide publisher of software for Nintendo, Sega, Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) and personal computer hardware systems, also publishes comic books This is a listing of comic books. See also List of comic creators. Argentina (historieta)
coin-operated adj [machine] → que funciona con monedas arcade and ticket-redemption games; operates a motion capture studio; and, through A.D.I., globally sells and distributes products from a variety of entertainment software publishers including Ocean, Interplay in·ter·play n. Reciprocal action and reaction; interaction. intr.v. in·ter·played, in·ter·play·ing, in·ter·plays To act or react on each other; interact. , Marvel The original code name for Microsoft Network. , Pulse Entertainment and Take 2 Interactive Software. 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, 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 CONSOLIDATED BALANCE SHEETS
(In 000's except per share data)
August 31,
1996 1995
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 18,814 $ 44,749
Marketable equity securities 11,278 26,503
Accounts receivable - net 20,478 179,311
Inventories 8,052 16,015
Other current assets 72,847 59,908
TOTAL CURRENT ASSETS 131,469 326,486
OTHER ASSETS
Other assets 108,182 116,341
TOTAL ASSETS $ 239,651 $ 442,827
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 29,749 $ 49,072
Short-term borrowings 5,321 4,233
Other current liabilities 106,438 72,726
TOTAL CURRENT LIABILITIES 141,508 126,031
LONG TERM LIABILITIES
Other long-term liabilities 4,032 461
TOTAL LIABILITIES 145,540 126,492
MINORITY INTEREST 522 1,628
STOCKHOLDERS' EQUITY
Common stock 1,001 926
Additional paid-in capital 165,782 158,133
(Accumulated deficit), retained
earnings (70,642) 153,141
Treasury stock (1,813) (807)
Foreign currency translation
adjustment (754) 811
Unrealized gain on marketable
equity securities 15 2,503
TOTAL STOCKHOLDERS' EQUITY 93,589 314,707
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $239,651 $442,827
ACCLAIM ENTERTAINMENT, INC.
AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(in 000s, except per share data)
Fiscal Year Ended Aug. 31,
1996 1995 1994
GROSS REVENUES $376,024 $591,804 $520,771
SALES CREDITS AND ALLOWANCES 214,079 25,081 40,015
NET REVENUES 161,945 566,723 480,756
COST OF REVENUES 180,072 268,501 220,744
GROSS (LOSS) PROFIT (18,127) 298,222 260,012
OPERATING EXPENSES
Selling, advertising, general
and administrative expenses 200,440 203,930 172,099
Product development 34,582 10,126 4,626
Operating interest 6,417 3,957 1,979
Depreciation and amortization 14,910 9,543 3,838
TOTAL OPERATING EXPENSES 256,349 227,556 182,542
(LOSS) EARNINGS FROM OPERATIONS (274,476) 70,666 77,470
OTHER INCOME (EXPENSE) 5,609 5,608 (475)
(LOSS) EARNINGS BEFORE INCOME
TAXES (268,867) 76,274 76,995
(BENEFIT FROM) PROVISION FOR
INCOME TAXES (46,393) 31,625 31,940
(LOSS) EARNINGS BEFORE MINORITY
INTEREST (222,474) 44,649 45,055
MINORITY INTEREST 1,106 (121) ---
NET (LOSS) EARNINGS $(221,368) $44,770 $45,055
NET (LOSS) EARNINGS PER COMMON
AND COMMON EQUIVALENT SHARE $ (4.47) $ 0.86 $ 1.00
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT
SHARES OUTSTANDING 49,515 52,300 45,150
CONTACT: Acclaim Entertainment, Glen Cove Nancy Tully, 516/656-5000 ntully@aklm.com |
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