NewKidCo International Inc. Announces Q2 RESULTS
NEW YORK--(BUSINESS WIRE)--Aug. 23, 2002--NewKidCo International Inc. (OTCBB:NKCIF - News; TSE:NKC - News) today announced its 2nd Quarter 2002 results. The company had a net loss of $1.8 million for the three months versus a net loss of $8.5 million for the same period last year. Income for the six months was a loss of $3.6 million versus a loss of $8.2 million last year. Revenue for the three and six months was $1.2 million and $3.1 million respectively versus $1.7 million and $5.3 million for the same period one year ago. The primary reason for the lower than anticipated revenue and income was the delayed release of two new titles "Tom & Jerry" for PS2 and "Little League Baseball 2002" for Game Boy Advance. Both of these titles will ship in the third quarter and will contribute in excess of $3 million of revenue. The majority of the revenues thus far in 2002 have been generated from the sale of catalogue titles at lower margins. Operating expenses while higher than last year for the same period are in line with budget and are projected to be lower than last year on both a percentage of sales basis and in absolute dollars. The company has invested a greater amount of marketing and promotional dollars against future sales than a year ago and has expensed them through the first six months. These expenses are expected to support third and fourth quarter sales. The company's balance sheet also reflects a much stronger position than both a year ago and one quarter ago as a result of its $5 million financing in April of 2002. Current Liabilities have been reduced form $12.8 million at the end of March to $5.4 million at the end of June.
"We anticipate our revenue and performance in the second half of the year to be stronger than the same period one year ago and feature several new products in our line," said Arthur Levine, President and Chief Operating Officer. "We feel strongly about the second half of the year based on the following:
Strong support from retail for our new titles being released over the next four months.
Release of our first PlayStation 2 title 'Tom & Jerry War of the Whiskers' in September 2002.
Release of our first 'Little League Baseball' title in September 2002.
Anticipated release of our new titles on new 'Dora the Explorer' and 'Dr. Seuss' licenses.
The release of two new 'ET: The Extra-Terrestrial' titles (one Game Cube and one PlayStation 2) for Day and 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 associated 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:
NewKidCo International, Inc.
NewKidCo Investor Relations
Arthur Levine / Barry Fried, 212/581-1555
Fax: 212-265-1620
Email: Arthur@newkidco.com
or
Bender/Helper Impact
NewKidCo Public Relations
Brenda Ciccone, 310/477-4647 x264
Fax: 310-478-7914
Email: brenda_ciccone@bhimpact.com
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Source: NewKidCo International, Inc. |
