NewKidCo International Inc. Announces Q1 Results
NEW YORK--(BUSINESS WIRE)--June 10, 2002--NewKidCo International Inc. (OTCBB: NKCIF, TSE:NKC) today announced that the Company's 1st Quarter 2002 results were in line with its budget. The net loss of $1.8 million versus net income of $.3 million for the same period last year was a result of increased selling and marketing expenditures as part of the overall plan by NewKidCo to support its broad product rollout for the year (selling and marketing costs have been expensed as incurred). Revenues were $1.8 million, down from $3.6 million for the same period last year a function of revenues being primarily generated from the sale of catalogue titles.
"We anticipate our revenue in the upcoming 2nd Quarter to improve over the same period last year as we ramp up for the year's exciting product line," said Arthur Levine, President and Chief Operating Officer. In addition we are extremely confident about the outlook for 2002, based on:
Tremendous response from retail and media for our new games at E3.
Release of our first PlayStation 2 title, "Tom & Jerry War of the Whiskers," in June/July 2002.
Release of our first "Little League Baseball" title in August 2002.
Anticipated release of our new titles on new "Dora the Explorer" and "Dr. Seuss" licenses.
Expansion of our Kids Sports line with "US Youth Soccer" and ongoing negotiations with other major sports leagues.
The closing in April 2002 of an equity financing of $7.1 million, which allowed the company to invest in new product development and licensing opportunities, eliminated over 11 million warrants, and significantly reduced our corporate debt and borrowing costs.
The release of three new ET: The Extra-Terrestrial titles for Day in Date Release with the DVD/home video release in October 2002.
NewKidCo International Inc. (TSE:NKC - News; OTCBB: NKCIF - News), headquartered in New York, New York, publishes children's video games based on popular licensed characters, for interactive entertainment game systems from Sony Computer Entertainment, Nintendo and Microsoft. NewKidCo publishes and distributes their products directly in North America and in Europe through distribution partner, Ubi Soft Entertainment SA. For more information please visit www.newkidco.com.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including without limitation risks of intellectual property rights and litigation, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company's products, risks of downturns in economic conditions generally, risks associated with competition and competitive pricing pressures, risks associated with foreign sales, risks associates with the sell-through of products in the sales channels, risks associated with customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission.
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Contact:
For NewKidCo (Public Relations)
Bender/Helper Impact
Brenda Ciccone, 310/477-4647, Ext. 264
Fax: 310/478-7914
Email: brenda_ciccone@bhimpact.com
or
TKO International (Investor Relations)
Al Turano, 866/934-6633
Fax: 303/850-7912
Email: tkoint@webaccess.net |
