Printer Friendly

GT Interactive reports record revenues up 56 percent for fiscal year.

NEW YORK--(BUSINESS WIRE)--Feb. 10, 1997--GT Interactive Software Corp. (NASDAQ: GTIS) today reported record revenues for the fiscal year ended December 31, 1996 of $365 million, a 56 percent increase over the previous year. Operating income in 1996 before merger and other one-time costs and goodwill amortization rose 35 percent to $46 million. Net income for the full year was $25 million or $.38 per share. (Because GT Interactive was a sub-chapter S corporation for part of 1995 and not a public company for the full year, net income and per share full year comparisons are unavailable.)

"We are very pleased with our achievements during our first full year as a public company," said Ron Chaimowitz, president and chief executive officer of GT Interactive. "Unlike most of our competitors, we were profitable in all four calendar quarters. We also accomplished what we set out to do at our initial public offering by achieving strong revenue growth, in particular a 63 percent increase in overall publishing revenues; market share leadership in interactive games; four strategic acquisitions; entry into the video games market; and a fast-emerging international business."

Revenues for the fourth quarter of 1996 were $135 million, a 30 percent increase over the comparable 1995 quarter. Net income for the quarter was $8.5 million, a 16.8 percent decrease from the fourth quarter of 1995. Earnings per share for the quarter were $.13 versus $.16 in the prior year.

The decline in net income for the quarter was primarily the result of video game product delays which reduced the company's higher-margin publishing revenue relative to its lower-margin mass merchant distribution sales, which exhibited significant growth. The strong growth in mass merchant sales during the fourth quarter was a reflection of seasonal trends as well as the continuing shift of sales to this channel. GT Interactive's higher-margin publishing sales were 48 percent of net revenue during the fourth quarter compared with 60 percent in the 1995 quarter, and 54 percent for 1996 as a whole.

In 1996 GT Interactive had the number two market share in front-line games and the number one share in value-priced software, according to PC Data. Two GT Interactive games - - Duke Nukem 3D and Quake -- performed among the year's top 10 best-sellers.

Publishing revenue rose from $121 million in 1995 to $197 million in 1996. Front-line publishing revenues grew approximately 95 percent, and revenues of value-priced software rose approximately 20 percent. At $40 million, international revenues increased in excess of 275 percent, comprising the fastest-growing segment of GT Interactive's business.

"Looking to the balance of 1997, we believe GT Interactive has the industry's strongest games lineup for PC as well as N64, Sony Playstation and Sega Saturn," Chaimowitz added. "We expect international sales to continue to be the fastest growing component of our business, augmented by our acquisitions of Time Warner Interactive and One Stop in Europe, as well as our agreement with Midway Games. In addition, we intend to continue to acquire, invest in and form alliances with the most creative and innovative independent design groups in the industry."

GT Interactive's 1997 lineup includes Unreal, from Epic Megagames; OddWorld: Abe's Oddysee, from OddWorld Inhabitants, (of which GT Interactive owns 50 percent); Total Annihilation(TM), the first title from GT Interactive's recently announced internal studio, Cavedog Entertainment; Shadow Warrior, from Apogee/3D Realms, creators of Duke Nukem 3D; as well as a host of titles from its children's subsidiary, Humongous Entertainment. GT Interactive will also offer one of the largest console lineups overseas as a result of its agreement with Midway Games.

During 1996, GT Interactive:

-- Released 47 new titles globally for PC, Macintosh, Sony

Playstation and Sega Saturn including industry best-sellers

Duke Nukem 3D, Quake and Final Doom;

-- Acquired The WizardWorks Group, a top-ten value-priced

software developer and publisher;

-- Acquired FormGen Corporation, publishers of the number

one PC hit, Duke Nukem 3D;

-- Acquired Humongous Entertainment, premier developer and

publisher of award-winning children's software featuring

original characters Pajama Sam, Freddi Fish and Putt-Putt;

-- Acquired 50 percent of OffWorld Entertainment, Inc.

(known as Oddworld Inhabitants), obtaining exclusive global

publishing rights to Oddworld software titles for all media,

including PC, console, print, merchandising and online

vehicles;

-- Acquired Warner Interactive Entertainment, a European

subsidiary of Warner Music Group, in a cash transaction;

-- Acquired 10 percent of UK-based software developer Mirage;

-- Entered into an agreement with Target Stores whereby GT

Interactive became Target's primary national supplier of

entertainment software;

-- Obtained an exclusive option from WMS Industries to

publish Atari titles for PC worldwide and next-generation

video game systems in Europe and other foreign territories;

-- Entered into an exclusive broad-based publishing

agreement with children's author Mercer Mayer for rights to

publish Mayer's catalog, including Little Critter, L.C. and

the Critter Kids, Little Monster and Critters of the Night

across all interactive media;

-- Launched full version of id Software's Quake globally;

-- Struck exclusive global publishing agreement with Epic

Megagames Inc. whereby GT Interactive obtained exclusive

rights to publish Unreal and a sequel for PC, and an option

for Sony PlayStation, Sega Saturn and Nintendo 64 systems on

a worldwide basis. In addition, GT Interactive obtained

rights to Epics' UnrealEd, a proprietary 3D authoring tool

for publishing associated game "level sets."

Headquartered in NY, with offices in London, Paris, Hamburg, San Francisco, Seattle, Phoenix and Minneapolis, GT Interactive Software Corp. is a leading global publisher of entertainment, edutainment and value-priced software under the GT Interactive, Humongous Entertainment, Cavedog Entertainment and WizardWorks brands, for IBM-compatible and Macintosh computers as well as game systems from Nintendo, Sony and Sega. Among GT Interactive's best-selling titles are Duke Nukem 3D and QUAKE. Located at http://www.gtinteractive.com on the World Wide Web, GT Interactive is publicly traded on the NASDAQ National Market System under the symbol GTIS. -0- NOTE: Certain statements contained in this press release may be deemed forward-looking statements that involve a number of risks and uncertainties. The company's actual results may differ materially from the expectations expressed in such forward-looking statements. Among the factors that could cause actual results to differ materially are worldwide business and industry conditions, including consumer buying and retailer ordering patterns, product delays, company customer relations, retail acceptance of the company's published and third party titles, competitive conditions and other risks detailed, from time to time, in the company's SEC filings including, but not limited to, the registration statement on Form S-1, SEC file no. 333-14441. -0-


 GT Interactive Software Corp. and Subsidiaries
 Condensed Consolidated Balance Sheets
 (unaudited)


 December December
 31, 31, 1996
 1995(a)
 (in thousands)

Cash and short-term investments $ 93,694 $ 76,584
Receivables, net 84,810 95,941
Inventories, net 49,145 60,457
Other current assets 45,587 90,995
 Total current assets 273,236 323,977

Property and equipment, net 6,087 10,082
Other assets 22,318 33,052
 Total assets $ 301,641 $ 367,111


Accounts payable $ 87,518 $ 107,842
Accrued liabilities 45,306 52,812
Other current liabilities 34,664 49,671
 Total current liabilities 167,488 210,325

Long-term liabilities 8,113 4,648
 Total liabilities 175,601 214,973

Stockholders' equity 126,040 152,138

 Total liabilities and
 stockholders' equity $ 301,641 $ 367,111


(a) The above information has been restated for the acquisition of
 WizardWorks Group, Inc., Candel, Inc. and Humongous Entertainment.

-0-


 GT Interactive Software Corp. And Subsidiaries
 Condensed Consolidated Statements Of Operations
 (unaudited)

 For The Quarter
 Ended December 31,
 1995(a) 1996
 (in thousands)

Net sales $ 104,060 $ 135,015
Cost of goods sold 60,830 84,348
Selling, general and
 administrative expenses 25,553 36,826
Income before merger and other
 costs, amortization of goodwill
 and income taxes 17,677 13,841
Merger and other costs 1,024
Amortization of goodwill 277 273
Provision for income taxes 7,166 4,029
 Net income $ 10,234 $ 8,515
Net income per share $ 0.13
Weighted average number of
 shares outstanding 66,391

-0-

 For The Year
 Ended December 31,
 1995(a) 1996
 (in thousands)
Net sales 234,461 365,490
Cost of goods sold 138,662 214,580
Selling, general and
 administrative expenses 62,146 105,333
Income before merger and other costs,
 amortization of goodwill and
 income taxes 33,653 45,577
Merger and other costs 3,718
Amortization of goodwill 567 1,092
Provision for income taxes 10,482 15,628
 Net income $ 22,604 $ 25,139
Pro forma adjustment to income
 tax provision(b) 4,616
Pro forma net income $ 17,988
Net income per share $ 0.38
Weighted average number of
 shares outstanding 66,391

(a) The above information has been restated for the acquisition of
 WizardWorks Group, Inc., Candel, Inc. and Humongous Entertainment.

(b) Reflects the income tax provision that would have been provided
 had the Company been a C Corporation for the entire period ended
 December 31, 1995.




CONTACT: (investors) (media)

Dawn Berrie Allyne Mills

212/726-4235 212/726-4202

dberrie@gtinteractive.com amills@gtinteractive.com
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Feb 10, 1997
Words:1486
Previous Article:Homestake Mining Receives Permits For Ruby Hill Construction; $65 Million Project To Begin Immediately.
Next Article:Superior National comments on rating agency announcements and participation in Golden Eagle rehabilitation.
Topics:


Related Articles
GT Interactive revenues increase 140 percent for first fiscal year.
GT INTERACTIVE REVENUES INCREASE 130 PERCENT FOR FIRST QUARTER Company Reports Record Quarter.
GT INTERACTIVE REPORTS RECORD SECOND QUARTER REVENUES; Publishing Business Increases Nearly 300 Percent.
GT Interactive reports record third quarter revenues.
GT Interactive Software reports record first quarter results.
GT Interactive Reports 40 Percent Increase in Earnings Per Share.
GT Interactive Reports Record Revenues For Fourth Quarter and Year.
GT Interactive Software Reports Results for Quarter Ended March 31, 1998.
BRIEFLY DISNEY PARKS BOSS GETS PROMOTION.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters