Printer Friendly

Infogrames, Inc. Strengthens North American Presence by Joining Forces With Infogrames North America, Inc.

    Business Editors

    NEW YORK--(BUSINESS WIRE)--Sept. 11, 2000--

      Company Announces Financial Results For Three Months
                     Ended June 30, 2000

      Infogrames, Inc., (formerly GT Interactive Software Corp.)
(NASDAQ: GTIS), a global publisher of interactive entertainment
software, today announced it has entered into an agreement with
majority shareholder Infogrames Entertainment SA to join forces with
Infogrames North America, Inc. The transaction will take place through
a merger of Infogrames North America, a wholly-owned subsidiary of
Infogrames Entertainment SA, with a newly formed wholly-owned
subsidiary of Infogrames, Inc. In connection with the merger, the
Company will issue 28 million shares of common stock to Infogrames
Entertainment SA, bringing the aggregate ownership of Infogrames
Entertainment SA in the Company to approximately 88%.
      "We are very excited about integrating our operations in North
America," stated Bruno Bonnell, Chairman and CEO of Infogrames. "We
believe that this will continue to strengthen the Infogrames global
family, and more specifically our North American presence, by
combining the two organizations into one industry power."
     The decision to acquire Infogrames North America is a result of
several months of evaluation by a specially formed committee of the
Company's Board of Directors comprised solely of independent
directors. Further details of the merger and the operational structure
of the combined organization are available in the Company's
Information Statement on Schedule 14C, which will be been filed with the
Securities and Exchange Commission (www.sec.gov) and mailed to
stockholders of the Company on or about Sept. 12.
      The Company will continue to trade under Infogrames, Inc.'s
listing on the Nasdaq National Market. The merger is expected to close
on October 2nd or soon thereafter.
      In addition, the Company announced operating results for the three
months ended June 30, 2000. The Company has transitioned its fiscal
year from a March 31 fiscal year to a June 30 fiscal year. This change
was made to coincide with the fiscal year of its majority shareholder
Infogrames Entertainment SA, which, as previously announced, acquired
a majority stake in Infogrames, Inc. in December 1999.
      Revenues for the three-month transition period were $33.0 million,
compared to $121.3 million for the same period in 1999. Publishing
revenues were $27.0 million compared to $50.9 million in the prior
year period. Distribution revenues were $6.0 million compared to $70.4
million in the prior year period as the Company decreased its emphasis
on third-party distribution. Net loss for the period, including
charges for management's restructuring and reorganization of the
Company, was $41.9 million, or $2.03 per share, compared to $3.9
million, or $0.31 per share(1), for the same period in 1999. Excluding
non-recurring charges, net loss would have been $22.4 million, or
$1.08 per share, in the three-month period ended June 30, 2000. For
the 2000 period, EBITDA (earnings before interest, taxes, depreciation
and amortization) was a loss of $34.3 million, compared to income of
$386,000 for the period in 1999.
      "We are nearing the end of our restructuring period," said Bruno
Bonnell, chairman and CEO of Infogrames, Inc. "The financials for this
transition period do not reflect the enormous strides we made during
the quarter, some of the biggest which were from an operational
perspective. During the quarter, we were able to add some of best
talent in the entertainment industry with veterans like David Fremed,
chief financial officer, Jason Bell, senior vice president of
publishing, Alyssa Padia, senior vice president of corporate
evolution, Andy Hieke, general manager and senior vice president at
the Company's Humongous Entertainment(R) division and Sarah Buxton,
vice president of marketing.
      "The additions of these veterans are key parts to the overall
restructuring process that has taken place at the Company," continued
Bonnell. "We are confident that this process will prove its value as
we look with great anticipation upon the future. Our new senior
management team, along with a highly anticipated holiday lineup
      including such titles as Driver 2(TM), should help strongly
position the Company for the new fiscal year."

    (1) Reflects earnings (loss) per share prior to the 1-for-5 reverse
stock split effected June 26, 2000.

About Infogrames

      Infogrames Entertainment SA (Paris Bourse: SICOVAM 5257) is a
worldwide leader in the interactive entertainment software industry.
Headquartered in France, the company develops and publishes
award-winning computer and video games for the PlayStation(R) game
console, PlayStation(R) 2 computer entertainment system, 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(TM), Oddworld(TM),
Unreal, Independence War(TM), and V-Rally(TM). The company is also
known for its best-selling and award-winning line of children's
entertainment software from Humongous Entertainment starring
Putt-Putt(R), Freddi Fish(TM), Pajama Sam(R) and SPY Fox(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(TM), Le Mans 24 Hours(R), AM
General Hummer(R), Harley-Davidson(R), and Dodge(R) Viper.
      Based in New York, Infogrames, Inc. (NASDAQ: GTIS) is a majority
owned subsidiary of Infogrames Entertainment and serves as the
headquarters for the company's operations in North America. For more
information, visit Infogrames' US Web site at www.us.infogrames.com.

SAFE HARBOR STATEMENT
      Certain statements contained in this release are forward-looking
statements (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 of 1995 and other enabling legislation.
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.
-0-
*T

                            INFOGRAMES, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share data)

                                             For the Three Months
                                               Ended June 30,
                                          1999               2000
                                        (unaudited)        (audited)


Net revenues                           $      121,325     $    32,983
Cost of goods sold                             62,143          16,150
                                      ----------------  --------------
                                      ----------------  --------------
Gross profit                                   59,182          16,833
Selling and distribution expenses              33,876          16,829
General and administrative expenses            11,761          16,146
Research and development                       16,366           9,582
Restructuring charges                               -          11,081
Amortization of goodwill                          888             561
                                      ----------------  --------------
                                      ----------------  --------------
     Operating loss                            (3,709)        (37,366)
Interest expense                               (1,959)         (3,318)
Other expenses                                   (293)           (384)
                                      ----------------  --------------
                                      ----------------  --------------
Loss before (benefit from)
 provision for income taxes                    (5,961)        (41,068)
(Benefit from) provision
 for income taxes                              (2,109)            876
                                      ----------------  --------------
                                      ----------------  --------------
Net loss                                       (3,852)        (41,944)
                                      ================  ==============
                                      ================  ==============
Less: Dividends on
 Preferred Stock                                  600               -
Net loss attributable to
 common stockholders                         $ (4,452)      $ (41,944)
                                      ----------------  --------------
                                      ----------------  --------------

Basic and diluted net loss per share          $ (0.31)        $ (2.03)

  Weighted average shares outstanding          14,574          20,680
                                      ================  ==============
                                      ================  ==============

EBITDA(a)                                         386         (34,334)
                                      ================  ==============
                                      ================  ==============

(a) EBITDA is defined as Earnings before interest, taxes,
depreciation and amortization.

    --30--ss/ny*

   CONTACT: Infogrames, Inc., New York
            John Menditto, (212) 726-4294
            jmenditto@us.infogrames.com

    KEYWORD: NEW YORK FRANCE INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: ELECTRONIC GAMES/MULTIMEDIA ENTERTAINMENT
INTERNET SOFTWARE EARNINGS
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Sep 11, 2000
Words:1254
Previous Article:Progress Software and McCamish Systems Extend Financial and Insurance Applications to Equitable Life Insurance.
Next Article:Progress Version 9 Database Peak Performance Rate Tops One Billion Transactions Per Day; Embedded Database Leader Demonstrates 400% Rise in...
Topics:


Related Articles
Infogrames Appoints Jim Barnett as President and CEO of Its New North American Headquarters.
Entertainment Industry Veterans Jason Bell and Alyssa Padia Join Infogrames' North American Management Team.
Infogrames, Inc. Announces Appointment Of New Vice President of Marketing for North America; Virgin Entertainment's Sarah Buxton to Manage North...
Infogrames Strikes Worldwide Tie-in With Diesel for 'Driver 2' Video Game.
Infogrames, Inc. Announces Four Strategic Senior Appointments.
Infogrames, Inc. Completes Merger and Bolsters North American Operations.
Humongous Entertainment Helps Bring Smiles to Children's Hospital & Regional Medical Center in Seattle.
Infogrames, Inc. Continues to Strengthen U.S. Management Team; Key Management Take On New Posts Within Company.
Logitech's GT Force Wheel for PlayStation 2 Adds Impact to Infogrames' Motor Mayhem; Upcoming Vehicular Combat Game To Support Logitech Force...
Infogrames Entertainment Accelerates Global Growth With an 81 Percent Increase in First-half FY2000 Net Consolidated Income to US$18.1 Million.

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