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 SAN MATEO, Calif., Aug. 9 /PRNewswire/ -- The 3DO Company

(NASDAQ: THDO) today released financial results for its first quarter ended June 30, 1993. Results for the quarter include a previously announced non-recurring operating expense charge of $21.4 million resulting from the company's acquisition of NTG, L.P. and NTG Inc. in April 1993. Only $0.7 million of this charge was a cash expense, with the remaining $20.7 million representing the issuance of 3DO common stock in connection with the acquisition.
 Excluding this non-recurring charge, the net loss for the period would have been $8.5 million, or $0.46 per share. Including the charge, the final net loss was $29.9 million, or $1.60 per share. For the same period in the prior year, the company incurred a net loss of $1.6 million, or $0.11 per share. As a development stage company, 3DO reported no revenues for either period.
 "Operating expense levels for the first quarter were in line with our internal targets," said D. Rex Golding, 3DO's chief financial officer. "We expect comparable operating losses to continue through fiscal 1994 as we assist our licensees with the development and launch of commercial products based on 3DO technology."
 The company also confirmed the achievement of important milestones related to the expected introduction of the 3DO Interactive Multiplayer(TM), the first consumer product incorporating 3DO technology, during the 1993 Christmas selling season. In June 1993, a final version of the company's proprietary graphics chipset was cleared for volume production. In July 1993, the company began shipping to its software licensees development systems that incorporated the final version of the graphics chipset.
 Golding added that achievement of these milestones was consistent with the company's internal development schedule but pointed out that a successful 1993 launch of the 3DO Interactive Multiplayer(TM) still requires achievement of the company's remaining internal development milestones, followed by completion and shipment of final hardware units and software titles by 3DO licensees in time for the 1993 Christmas selling season.
 The company also reported that approximately 350 companies are now 3DO software licensees. More than 250 prototype development systems have been purchased by 110 of these licensee companies.
 Based in San Mateo, The 3DO Company was formed to establish a new standard for interactive multimedia systems. The 3DO Company is backed by an unprecedented coalition of partners from the consumer electronics, communications, entertainment and software industries. Investors include Matsushita Electric Industrial Co. Ltd., one of the world's largest manufacturers of consumer electronics and marketer of such well- known brands as Panasonic, National, Quasar and Technics; American Telephone & Telegraph Company (AT&T), a leader in communications, computing, semiconductors and consumer telephone products; Time Warner, a leader in cable television, filmed entertainment and programming; MCA, a leader in film, television, music, theme parks and theater operations; Electronic Arts, a leading publisher of interactive entertainment software; and the prominent Silicon Valley venture capital firm, Kleiner Perkins Caufield & Byers.
 Until Aug. 13, 1993, headquarters for The 3DO Company are located at 1820 Gateway Drive, San Mateo, CA 94404, and the general telephone number is 415-574-6789.
 After August 13, 1993, headquarters for The 3DO Company will be located at 600 Galveston Drive, Redwood City, CA 94063, and the general telephone number will be 415-261-3000.
 Condensed Statements of Operations
 (In thousands, except per-share amounts)
 Three Months ended June 30,
 1993 1992
 Revenue $ --- $ ---
 Operating expenses
 Research and development 5,455 1,339
 Sales and marketing 2,226 78
 General and administrative 1,059 197
 Loss from NTG acquisition 21,353 ---
 Total operating expenses 30,093 1,614
 Operating loss (30,093) (1,614)
 Interest income, net 215 12
 Loss before provision for
 income taxes (29,878) (1,602)
 Provision for income taxes 1 1
 Net loss $(29,879) $ (1,603)
 Net loss per share $ (1.60) $ (0.11)
 Common and equivalent
 shares 18,621 15,018
 Condensed Balance Sheets
 (In thousands, except per-share amounts)
 June 30, 1993 March 31, 1993
 Cash, cash equivalents
 & short-term investments $ 40,662 $ 2,827
 Other current assets 1,075 474
 Total current assets 41,737 3,301
 Property and equipment, net 4,642 3,006
 Other assets 522 130
 Total assets $ 46,901 $ 6,437
 Liabilities and Stockholders'
 Accounts payable and other
 accrued expenses $ 4,575 $ 3,120
 Deferred revenue 1,959 968
 Other current liabilities 28 388
 Total current liabilities 6,562 4,476
 Deferred revenue from
 stockholders 2,375 2,375
 Other non-current liabilities 557 545
 Total liabilities 9,494 7,396
 Stockholders' equity 37,407 (959)
 Total liabilities and
 stockholders' equity $ 46,901 $ 6,437
 NOTE: 3DO and Interactive Multiplayer are trademarks of The 3DO Company.
 -0- 8/9/93
 /CONTACT: Rex Golding, chief financial officer of The 3DO Company, 415-574-6794; or Lee McEnany or Rick Rhoades of The Bohle Company, 310-785-0515, for 3DO/

CO: The 3DO Company ST: California IN: CPR ENT SU: ERN

PK-TM -- SF012 -- 1158 08/10/93 11:36 EDT
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Publication:PR Newswire
Date:Aug 10, 1993

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