Acclaim reports third quarter 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)--July 11, 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 revenues of $62.6 million for its third quarter ended May 31, 1996 and a net loss of $3.97 million, or $0.08 loss per share. "As predicted by several market analysts, we are reporting a loss for the third quarter of the current fiscal year," says Robert Holmes Robert Holmes may refer to: Politicians:
CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). , and the positive impact this had and will continue to have on our operating performance." In April of this year, the company announced that it was exiting the cartridge video games See video game console. business and took a one-time cartridge market exit charge. During the company's fiscal 1995 third quarter, 73% of Acclaim's entertainment software gross revenue was derived from 16-bit cartridge games, and only 9% was derived from CD-ROM software. For the same period in 1996, the percentage of entertainment software revenue derived from CD-ROM sales jumped to 77%. Gross margins also improved on a year-to-year basis from 50% in 1995 to nearly 61% in 1996. "This year of transition has been difficult for both the industry and Acclaim. We believe the end of this transition period for Acclaim is here, occurring during our current quarter, which ends in August," Holmes stated. "We have had numerous strong titles for the new hardware systems, yet the active user base of these systems to date has not been sufficient to offset the decline in the older technologies. We see that balance changing now, and anticipate that we will return to consistent profitability beginning in our next fiscal quarter commencing in September. Our product lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. is strong with titles ranging from The Quarterback Club to Space Jam, the upcoming film from Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . featuring Michael Jordan This article is about the former basketball player. For other uses, see Michael Jordan (disambiguation). Michael Jeffrey Jordan (born February 17 1963) is a retired American professional basketball player. ; we begin to benefit from the development capabilities of our acquired studios: Iguana Entertainment Iguana Entertainment was a video game developer operating from 1991 to 2004 in Santa Clara, California, Sunnyvale, California, Austin, Texas and Teesside, England. They were best known for developing the , NBA Jam, NFL Quarterback Club, and South Park video games. , Sculptured Software Sculptured Software Inc. was a late twentieth century video game developer in the Salt Lake City, Utah metropolitan area. They specialized in porting games to different platforms, especially from arcade games to home console games. and Probe Ltd.; the international market continues to grow; our recent entry into the coin-operated arcade market begins to bear fruit...in other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the potential of the upcoming fiscal year," Holmes added. Acclaim Entertainment, Inc. is a leading worldwide publisher of software for Nintendo, Sega, Sony, personal computer and CD-ROM hardware systems; and comic books This is a listing of comic books. See also List of comic creators. Argentina (historieta)
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, Pulse Entertainment, Sunsoft, and Take 2. Acclaim, which also entered into a joint venture with Tele-Communications, Inc. for electronically distributed interactive entertainment, is publicly traded on the NASDAQ National Market System under the symbol AKLM. This press 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 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. Acclaim is a registered trademark and The Quarterback Club is a trademark of Acclaim Entertainment, Inc. All other marks are trademarks or registered trademarks of their respective companies. (TABLES FOLLOW) -0-
ACCLAIM ENTERTAINMENT, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 000s, except per share data)
May 31, August 31,
1996 1995
ASSETS
CURRENT ASSETS
Cash and cash equivalents $31,785 $44,749
Marketable equity securities 13,914 26,503
Accounts receivable - net 78,758 179,311
Inventories 19,045 16,015
Other current assets 103,214 59,908
TOTAL CURRENT ASSETS 246,716 326,486
OTHER ASSETS 119,357 126,993 TOTAL ASSETS $366,073 $453,479 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable $34,181 $49,072 Short-term borrowings 3,080 4,233 Other current liabilities 36,776 72,726 TOTAL CURRENT LIABILITIES 74,037 126,031 LONG-TERM LIABILITIES Other long-term liabilities 21,987 461 TOTAL LIABILITIES 96,024 126,492 MINORITY INTEREST 1,120 1,628 STOCKHOLDERS' EQUITY Common stock 1,003 926 Additional paid in capital 178,674 168,785 Retained earnings 91,582 153,141 Treasury stock (1,813) (807) Foreign currency translation adjustment (2,074) 811 Unrealized gain on marketable equity securities 1,557 2,503 TOTAL STOCKHOLDERS' EQUITY 268,929 325,359 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $366,073 $453,479 -0-
ACCLAIM ENTERTAINMENT, INC.
AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS
(in 000s, except per share data)
Three Months Ended Nine Months Ended
May 31, May 31,
1996 1995 1996 1995
NET REVENUES $62,639 $107,654 $243,846 $433,231 COST OF REVENUES 24,456 53,793 134,758 204,913 SPECIAL CARTRIDGE VIDEO CHARGE ---- ---- 51,168 ---- GROSS PROFIT 38,183 53,861 57,920 228,318 OPERATING EXPENSES Selling, advertising, general and administrative expenses 39,296 35,817 135,173 154,317 Operating interest 2,150 1,055 5,255 2,967 Depreciation and amortization 3,671 2,796 10,867 6,409 TOTAL OPERATING EXPENSES 45,117 39,668 151,295 163,693 (LOSS) EARNINGS FROM OPERATIONS (6,934) 14,193 (93,375) 64,625 OTHER INCOME (EXPENSE) 930 869 5,463 1,336 (LOSS) EARNINGS BEFORE INCOME TAXES (6,004) 15,062 (87,912) 65,961 (BENEFIT) PROVISION FOR INCOME TAXES (1,800) 6,235 (28,260) 27,320 NET (LOSS) EARNINGS BEFORE MINORITY INTEREST (4,204) 8,827 (59,652) 38,641 MINORITY INTEREST (236) (28) (508) (28) NET (LOSS) EARNINGS $(3,968) $8,855 $(59,144) $38,669 NET (LOSS) EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $(0.08) $0.17 $(1.20) $0.78 WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 49,940 52,640 49,360 49,705 -0- CONTACT: (Financial) -or- (Media) Anthony Williams Anthony Williams or Tony Williams is the name of several well-known persons named :
516/656-5000 Jayson Bernstein 516/656-5000 |
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