GT INTERACTIVE REPORTS RECORD SECOND QUARTER REVENUES; Publishing Business Increases Nearly 300 Percent.
For the six months ended June 30, 1996, GT Interactive reported net revenue of $140.9 million and net income of $10.1 million. This represents approximately a 118 percent increase in revenue and approximately a 76 percent increase in net income over the same period last year when viewed on a tax-adjusted basis.
"With nearly a 300 percent increase in the quarter over last year in our premier publishing business and approximately a 240 percent increase in the value-priced area, augmented by our acquisitions of The WizardWorks Group and FormGen we took significant strides toward achieving our goal of becoming a major global interactive software publisher," said Ron Chaimowitz, president and chief executive officer of GT Interactive. "As we head into the holiday season with a strong portfolio of titles including Duke Nukem 3D, the number one PC game on the market; our first entries in the next-generation video game market; as well as the exciting children's software lineup of our most recent acquisition -- Humongous Entertainment -- we believe we are well-positioned to maintain our leadership position."
Notable activities GT Interactive undertook during second quarter include:
-- Completion of the acquisition of The WizardWorks Group,
Inc., a leading publisher and developer of value-priced
interactive entertainment, edutainment and productivity
software in a pooling of interests wherein GT Interactive
exchanged 2.35 million shares of common stock for all the
outstanding shares of The WizardWorks Group;
-- Completion of the acquisition of FormGen Corporation,
publishers of the current number one PC hit, Duke Nukem 3D,
in a pooling of interests transaction in which GT
Interactive exchanged approximately one million shares of
common stock for all the outstanding shares of FormGen;
-- Entering into a broad-based publishing agreement with
award-winning children's author, Mercer Mayer and his
software development company, Big Tuna New Media, whereby GT
Interactive obtained exclusive rights to publish Mayer's
catalog of children's properties -- including Little
Critter, LC and the Critter Kids, Little Monster and
Critters of the Night.
Headquartered in NY, with offices in London, San Francisco, Minneapolis, Phoenix and Seattle, GT Interactive Software Corp. is a leading publisher of interactive entertainment, edutainment and reference software for IBM-compatible and Macintosh computers as well as 32- and 64-bit gaming systems. Among GT Interactive's best-selling titles are Doom II, Mortal Kombat 3 and Duke Nukem 3D. Located at www.gtinteractive.com on the World Wide Web, GT Interactive is publicly traded on the NASDAQ National Market System under the symbol GTIS.
Note: Certain statements contained in this press release may be deemed forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: worldwide business and industry conditions; adoption of new hardware systems; product delays; company customer relations, and other risks detailed, from time to time, in the company's SEC reports including, but not limited to the report on form 10K for the year ended December 31, 1995.
GT Interactive Software Corp. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited)
December 31, June 30, 1995(a) 1996 (in thousands)
Cash and short-term investments $ 92,361 $ 69,743 Receivables, net 83,191 63,226 Inventories, net 48,513 44,514 Other current assets 45,537 68,468 Total current assets 269,602 245,951
Property and equipment, net 5,670 6,954 Other assets 22,297 24,956 Total assets $ 297,569 $ 277,861
Accounts payable $ 87,366 $ 64,946 Accrued liabilities 44,452 35,599 Other current liabilities 34,167 36,939 Total current liabilities 165,985 137,484
Long-term liabilities 7,788 6,506 Total liabilities 173,773 143,990
Stockholders' equity 123,796 133,871
Total liabilities and stockholders' equity $ 297,569 $ 277,861
(a) The above information has been restated for the acquisition of WizardWorks Group, Inc. and Candel, Inc.
GT Interactive Software Corp. And Subsidiaries Condensed Consolidated Statements Of Operations (unaudited)
For The Quarter Ended June 30, 1995 1996 (in thousands)
Net sales $ 30,298 $ 72,032 Cost of goods sold 17,440 41,144 Selling, general and 9,261 21,146 administrative expenses Income before merger costs and income taxes 3,597 9,742 Merger costs 1,573 Provision for income taxes 1,457 3,381 Net income $ 2,140 $ 4,788
Net income per share $ 0.08
Weighted average number of shares outstanding 62,687
For The Six Months Ended June 30, 1995 1996 (in thousands)
Net sales $ 64,420 $ 140,934 Cost of goods sold 36,368 81,687 Selling, general and 18,017 39,987 administrative expenses Income before merger costs and income taxes 10,035 19,260 Merger costs 1,573 Provision for income taxes 318 7,599 Net income $ 9,717 $ 10,088
Pro forma adjustment to income 3,997 tax provision(b)
Pro forma net income $ 5,720
Net income per share $ 0.16
Weighted average number of shares outstanding 62,687
(b) Reflects the income tax provision that would have been provided had the Company been a C Corporation for the entire period ended June 30, 1995.
CONTACT: Allyne Mills Dawn Berrie