Infogrames, Inc. Announces Financial Results for Three Months Ended September 30, 2000.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 13, 2000 Infogrames, Inc. (Nasdaq: IFGM), a global publisher of interactive entertainment software, today announced operating results for the three months ended September 30, 2000. Revenues for the three-month period were $39.3 million, compared to $91.4 million for the same period in 1999. Publishing revenues decreased to $27.1 million from $73.5 million in the prior year period primarily due to significant revenue generated in the 1999 period from top-selling titles such as Driver(TM), for the PlayStation(R) game console See video game console. , which was introduced in 1999, and various titles from our WizardWorks label. Distribution revenues decreased to $12.2 million from $17.9 million in the prior year period as the Company continued its decreased emphasis on third-party distribution. Net loss for the period, including certain charges related to the Company's merger with Infogrames North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. on October 2, 2000, improved to $15.2 million, or $0.73 per share, from a net loss of $56.5 million, or $3.83 per share(1), for the same period in 1999. Excluding these non-recurring charges, net loss would have been $13.5 million, or $0.65 per share, in the three-month period ended September 30, 2000. For the 2000 period, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Bruno Bonnell Bruno Bonnell is one of the founders of Infogrames Entertainment SA. A qualified chemical engineer, Bonnell received a degree in economics at the Université Paris IX. He began his long career on the Thomson TO7, one of the earliest French-produced home computers, before founding , 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 Infogrames, Inc., stated "The first quarter of fiscal 2001 was an important quarter for Infogrames, Inc. as we took several steps towards merging the Company's operations with Infogrames North America (INA Ina (ē`nä), city (1990 pop. 60,062), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural and industrial center with a famous agricultural school. ). The merger, which was completed shortly after the close of the quarter, adds INA's outstanding portfolio of titles including Unreal Tournament  This article needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. and Test Drive, licenses such as Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . Looney Tunes, and its talented employee base. These assets provide Infogrames, Inc. with substantial building blocks for the future through an even stronger development team and a deeper catalog of titles." Bonnell continued, "As part of the merging of operations, we were also able to significantly improve the Company's balance sheet by converting all debt owed to Infogrames Entertainment SA into an additional equity stake in the Company affording us greater long-term financial flexibility. "Also during the quarter, we appointed several new members to our senior management team including Dave Gatchel, senior vice president of development, Cathy Tische, vice president of licensing; Lisa Rothblum, senior vice president and general counsel, and Nancy Griffin, vice president responsible for European re-publishing." Bonnell continued, "These new additions, coupled with members of senior management added over the past few quarters, will be instrumental in overseeing the re-shaping of the internal organization and facilitating our growth strategy." In addition, the Company recently signed a deal with Microsoft and Oddworld, whereby beginning with the much-anticipated game "Munch's Oddysee," Microsoft will exclusively publish and distribute the next four installments in the "Oddworld Quintology" for its Xbox video game console A specialized desktop computer used to play video games. The three most popular game consoles are Sony's PlayStation 3 (PS3), Nintendo's GameCube and Microsoft's Xbox. Game software is available on CDs or DVDs, although earlier game machines used cartridges containing read only memory . Bonnell commented, "Although this agreement will allow Microsoft to exclusively publish the next four titles in the "Oddworld" series, we believe it will further strengthen the franchise's worldwide popularity by providing it with substantial brand support through Microsoft's enormous marketing campaign for the Xbox." "The creation of a global leader in digital entertainment has and continues to be our objective. Our plan is to accomplish this through the achievement of many short-term goals. During the quarter, we increased our revenues from $33.0 million in our June 2000 quarter to $39.3 million in the September 2000 quarter. Results of our achievements in creating operating efficiencies can be seen in the September 2000 quarter compared to our June 2000 quarter, as we improved, excluding non-recurring charges, our net loss to $13.5 million from $22.4 million and our EBITDA, to a $8.1 loss from a $14.8 million loss. We will continue to take the necessary steps to get the job done, without sacrificing quality and value to our customers and shareholders. With titles like Driver 2 for PlayStation(R) and Unreal Tournament for PlayStation(R)2 garnering demand for over 1 million units and 200,000 units, respectfully, in the US alone, we believe we are looking at a new horizon at Infogrames, Inc., and we are very excited about the things we see," concluded Bonnell. (1) Reflects earnings (loss) per share prior to the 1-for-5 reverse stock split effected June 26, 2000. About Infogrames Based in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY, Infogrames, Inc. (Nasdaq: IFGM) is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Infogrames Entertainment (Euronext 5257) and serves as the headquarters for the company's operations in North America. Infogrames Entertainment is a worldwide leader in the interactive entertainment software industry. Headquartered in France, the company develops and publishes award-winning computer and video games This article is about the British magazine covering computer and video games. For the American magazine, see Computer Games Magazine. Computer And Video Games (CVG for the PlayStation(R) game console, PlayStation(R) 2 computer entertainment system, Microsoft(R) Xbox, Nintendo(R) 64, Nintendo(R) Game Boy(R) Color, Sega(R) Dreamcast(TM), Macintosh(R), and personal computer platforms. Founded in 1983 by chairman and CEO Bruno Bonnell, Infogrames has published many award-winning franchises in its 17-year history, such as Alone In The Dark(TM), Test Drive(R), Driver(TM), Deer Hunter(R), Oddworld(TM), Unreal(TM), and V-Rally(TM). The company is also known for its 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 and award-winning line of children's entertainment software from Humongous Entertainment starring Putt-Putt(R), Freddi Fish Character Freddi Fish is a fictional anthropomorphic fish in the award winning Freddi Fish series of children's software from Humongous Entertainment. Freddi Fish has her own pal, Luther, who is her best friend and goes with her on all her adventures. (TM), Pajama Sam This article is about the Pajama Sam games. For the character, see Pajama Sam (character). The Pajama Sam series is a collection of children's adventure and puzzle games created by Humongous Entertainment. (R) and SPY Fox Spy Fox is a fictional anthropomorphic fox in the Spy Fox series of software for five to ten year old children from Humongous Entertainment. The characters live in a world of anthropomorphic animals who live like humans. (TM), as well as its successful Macintosh publishing label, Macsoft, the number one publisher of Macintosh entertainment software. In addition, Infogrames has a number of key strategic licenses including Warner Bros. Looney Tunes(TM), Nickelodeon's Blue's Clues Blue's Clues is a children's show about a dog named Blue. It features live action one on one on paper-cutout animation. The series follows a dog named Blue through her everyday life, providing small children with fun and education. The show airs on both Nick Jr. and Noggin. (TM), AM General Hummer(R), and Harley-Davidson(R). For more information, visit Infogrames' US Web site at www.us.infogrames.com. (Table to Follow) SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT Certain statements contained in this release are 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. (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks the protection afforded by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and other enabling legislation Noun 1. enabling legislation - legislation that gives appropriate officials the authority to implement or enforce the law legislation, statute law - law enacted by a legislative body . Statements contained herein with regard to the company's business outlook and prospective operating and financial results are based upon management's expectations regarding various factors, which may be beyond the company's control. This statement is not intended to identify each and every risk and uncertainty inherent in the company's business, and should be read in conjunction with the company's cautionary statements contained in its most recent filings with U.S. and foreign regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities .
INFOGRAMES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three Months
Ended September 30,
-----------------------------
1999 2000
----------- -----------
(unaudited) (unaudited)
Net revenues $ 91,426 $ 39,321
Cost of goods sold 64,620 13,587
Gross profit 26,806 25,734
Selling and distribution
expenses 38,064 13,531
General and administrative
expenses 11,791 11,100
Research and development 25,229 9,249
Merger Costs -- 1,700
Depreciation and amortization 3,834 1,549
------- -------
Operating loss (52,112) (11,395)
Interest expense 5,868 4,315
Other income 306 514
------- -------
Loss before benefit from
income taxes (57,674) (15,196)
Benefit from income taxes 1,614 --
------- -------
Loss from continuing
operations (56,060) (15,196)
Loss from discontinued
operations 477 --
------- -------
Net loss (56,537) (15,196)
======= =======
Less: Dividends on Preferred
Stock 600 --
Net loss attributable to
common stockholders $ (57,137) $ (15,196)
------- -------
Basic and diluted net loss
per share from con't. ops $ (3.80) $ (0.73)
Basic and diluted net
loss per share from
discon't. ops $ (0.03) $ --
Basic and diluted net
loss per share $ (3.83) $ (0.73)
Weighted average
shares outstanding 14,772 20,686
======= =======
EBITDA* $ (48,278) $ (9,846)
* EBITDA is defined as earnings before interest, taxes, depreciation
and amortization.
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