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GT INTERACTIVE REPORTS RECORD SECOND QUARTER REVENUES; Publishing Business Increases Nearly 300 Percent.



NEW YORK--(BUSINESS WIRE)--August 1, 1996--GT Interactive Software Corp. (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
: GTIS GTIS Government Telecommunications and Informatics Services (Canada)
GTIS Global Trade Information Services
GTIS GOES Tap Imaging System
GTIS Government Technical Information Services (Canada) 
) today reported record second quarter revenues of $72.0 million for the quarter ended June June: see month.  30, 1996, an increase of approximately 138 percent over the same period last year. Earnings per share were $0.08 for the quarter, while net income for the period was $4.8 million, approximately 124 percent increase over the second quarter of 1995's net income.

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 FormGen is a computer game company that formed in 1991 and was bought out by GT Interactive in 1996.  we took significant strides toward achieving our goal of becoming a major global interactive software publisher," said Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria
Bokkos, Daffo

West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member
 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 Duke Nukem may refer to:
  • The Duke Nukem video game series originally developed by Apogee Software
  • Duke Nukem (character), the protagonist of the Duke Nukem video games
 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 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.  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 Educational material that is also entertaining.

(application) edutainment - Interactive education and entertainment services or software, usually supplied commercially via a cable network or on CD-ROM.
 and productivity

software in a pooling of interests Pooling of Interests

An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together.

Notes:
The opposite of pooling of interests is the purchase acquisition method.
 wherein where·in  
adv.
In what way; how: Wherein have we sinned?

conj.
1. In which location; where: the country wherein those people live.

2.
 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 broad-based

Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased
 publishing agreement with

award-winning children's author, Mercer mer·cer  
n. Chiefly British
A dealer in textiles, especially silks.



[Middle English, from Old French mercier, trader, from merz, merchandise, from Latin merx
 Mayer and his

software development company, Big Tuna
Big Tuna is also a nickname for NFL coach Bill Parcells and television character Jim Halpert.


Big Tuna (AKA Zehirut Matzlema or in Hebrew זהירות מצלמה) is the first Israeli
 New Media, whereby GT

Interactive obtained exclusive rights to publish Mayer's

catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C.  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 San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , 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 best·sell·er also best seller  
n.
A product, such as a book, that is among those sold in the largest numbers.



best
 titles are Doom Doom or Doomsday: see Judgment Day.

(games) DOOM - A simulated 3D moster-hunting action game for IBM PCs, created and published by id Software. The original press release was dated January 1993. A cut-down shareware version v1.
 II, Mortal Kombat Mortal Kombat (commonly abbreviated as MK) is a popular series of fighting games created originally by the Midway Manufacturing Company. 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 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.
 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.

-0-
       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.


-0-


       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

212/726-4202 212/726-6500

(media) (investors)
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Aug 1, 1996
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