NewKidCo Announces Revised Third Quarter 2001 Results
NEW YORK--(BUSINESS WIRE)--Dec. 4, 2001--NewKidCo International Inc. (OTC BB: NKCIF, TSE:NKC) today announced revised results for the three months ended September 30, 2001, due to specific events that have adversely impacted previously reported figures.
The company is required to correct several significant inventory movement issues with certain key retailers. This has resulted in the company taking some conservative reserves against sales in the third quarter, to reduce net revenues to approximately $2 million. Current indications suggest that these revenues will be made up in the fourth quarter. Accordingly, the company has had to make a downward adjustment in its gross margin contribution, and hence its earnings, by $.8 million from a previously reported profit of $.2 million.
Arthur Levine, NewKidCo President and COO, remarked, ``While this adjustment is very disappointing, it is a reflection of the spotty and, at times, uneven conditions at retail, which have been exacerbated by platform transition issues, current trends indicating a recession, and retail market instability following the events of September 11.''
Mr. Levine continued, ``The Company continues to ship its new titles and will continue to work with retailers to make sure all inventory issues are dealt with on a real-time basis. It is expected that all of these concerns will be normalized before fourth quarter reporting is completed.''
NewKidCo International Inc. (OTC BB: NKCIF, TSE:NKC), headquartered in New York City, New York, publishes children's video games based on popular licensed characters, for interactive entertainment game systems from Nintendo, Sony and Microsoft. NewKidCo publishes and distributes its products directly in North America, in Europe through distribution partner, Ubi Soft Entertainment SA. and in Japan through Success Corp. For more information please visit www.newkidco.com.
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Contact:
NewKidCo Press Contacts:
Brenda Ciccone
Bender/Helper Impact
Tel: 310-477-4647 x264
Email: brenda_ciccone@bhimpact.com
or
NewKidCo Investor Relations:
Alissa Pinck
NewKidCo International Inc.
Tel: 212-581-1555 ext. 229
Email: investor@newkidco.com |
