Earnings are out as pre-warned::
TABLE - Microprose Inc (NASDAQ:MPRS) Q2 shr loss $0.06
Reuters, Friday, October 24, 1997 at 08:28
ALAMEDA, Calif., Oct 24 (Reuters) -
(In thousands, except per share data, unaudited)
Three Months Ended Six Months Ended
September 30 September 30
1997 1996 1997 1996
Net revenue
$ 19,199 $ 27,413 $ 19,199 $ 27,413
Total operating expenses
12,896 14,998 12,896 14,998
Operating income (loss)
(1,700) 2,229 (1,700) 2,229
Other income (expense), net
(70) (398) (70) (398)
Net income (loss) before extraordinary
item (1,770) 1,831 (1,770) 1,831
Extraordinary item, net
of tax effect 0 879 0 879
Net income (loss)
$ (1,770) $ 2,710 $ (1,770) $ 2,710
Per share data:
Net income (loss) before extraordinary
item $ (0.06) $ 0.06 $ (0.07) $(0.09)
Extraordinary item,
net of tax effect
0.00 0.03 0.00 0.13
Net income (loss) per share
$ (0.06) $ 0.09 $ (0.07) $ 0.04
Shares used in per share computations
28,365 28,214 28,335 26,674
Copyright 1997, Reuters News Service
Companies or Securities discussed in this article:
SymbolNameNASDAQ:MPRS
ALAMEDA, Calif., Oct. 24 /PRNewswire/ -- MicroProse, Inc. (NASDAQ:MPRS),
formerly known as Spectrum HoloByte, Inc. (Nasdaq: SBYT), a worldwide
interactive entertainment company, today reported financial results for its
second fiscal quarter ended September 28, 1997.
The company reported a net loss of $1.8 million, or $.06 per share, on net
revenue of $19.2 million for the second quarter of fiscal 1998. This compares
with a net loss of $8.3 million, or $.30 per share, on net revenue of
$13.6 million for the first quarter of fiscal 1998, and net income of
$2.7 million, or $.09 per share, on net revenue of $27.4 million for the
second quarter of fiscal 1997. These results are within the range of the
preliminary results the company released on October 6, in conjunction with the
company's announcement that GT Interactive Software Corp. (Nasdaq: GTIS) had
executed a definitive merger agreement to acquire MicroProse.
Second quarter gross margin was 58 percent of net revenue, basically
unchanged from the prior quarter and down from 63 percent in the second
quarter of fiscal 1997. Operating expenses remained essentially unchanged
from the prior quarter, but declined by $2.1 million from the fiscal 1997
second quarter due largely to lower European selling costs, reduced reserves
for legal contingencies, and a reduction in bad debt reserves related to the
improved financial position of certain large customers. Cash decreased during
the most recent quarter by over $6 million to approximately $35 million, due
mostly to increased receivables resulting from increased quarter-to-quarter
revenue and to several third-party royalty advances.
For the first six months of fiscal 1998, MicroProse reported an operating
loss of $7.1 million and a net loss of $10.1 million, or $0.36 per share, on
net revenue of $32.8 million. Results for the first six months included a
non-operating charge of $2.6 million in the first quarter to write down a
minority investment in Total Entertainment Network. In the same period of
fiscal 1997, the company had net income of $1.2 million, or $.04 per share, on
net revenues of $40.5 million.
The company released two new titles in the second fiscal quarter,
X-COM: Apocalypse(TM), which was developed internally, and 7th Legion(TM), a
multiplayer strategy game licensed from Epic MegaGames. Additionally, in
North America the company released Spells of the Ancients(TM), the first of
several planned expansion disks for Magic: The Gathering(R). The company also
released two compilations in the quarter. Conquer the Skies included four
flight simulation titles: Falcon 3.0, 1942 Pacific Air Wars, Gunship 2000 and
F-14 Fleet Defender; and Conquer the World included the four strategy titles
Transport Tycoon, Railroad Tycoon, Pirates' Gold and Colonization.
Earlier this week, the company released Dark Earth, a game developed by
Kalisto Entertainment. Other key products under development include:
Falcon(R) 4.0, MechWarrior(R) III, MechCommander(TM), European Air War(TM),
Guardians: Agents of Justice(TM), Star Trek First Contact(TM), Starship
Troopers(TM), M1 Tank Patoon(R) II, X-COM: Interceptor(TM), Star Trek: Klingon
Honor Guard(TM), MiG-29(TM), expansion disks for Magic: The Gathering(R)
including multiplayer and tournament capabilities, and updated Civilization
products.
Stephen M. Race, chief executive officer, said, "As the merger with G.T.
Interactive is completed later this year, the strong MicroProse title lineup
and G.T.'s exceptional distribution and marketing expertise should make the
combined company a formidable competitor in the interactive publishing
marketplace."
Under terms of the merger agreement, which is expected to be completed by
the end of the year, MicroProse shareholders will receive 0.7 shares of GT
Interactive common stock for each share of MicroProse common stock. The
transaction, which was unanimously approved by each company's board of
directors, is subject to approval by stockholders of both companies and
customary regulatory agencies.
MicroProse is a leading developer and publisher of interactive
entertainment software for use on CD-ROM-based personal computer systems,
published under the MicroProse(R) brand name. The company also publishes
software for use on next generation 32/64-bit console machines, the Internet
and on-line gaming services. The company's five development studios are
located in: Alameda, California; Hunt Valley, Maryland; Chapel Hill, North
Carolina; Chipping Sodbury, England; and Austin, Texas. Products are
available nationally and internationally through major distributors,
retailers, mass merchants and on the company's World Wide Web site at
microprose.com.
This document may contain forward-looking statements that are subject to
risks and uncertainties that could cause actual results to differ materially
from those projected. In particular, as with all software products, until all
aspects of the development and initial distribution of the company's games are
completed, there can be no assurance of product release dates. For a
discussion of additional factors that could cause actual results to differ,
see the company's publicly available Securities and Exchange Commission
filings, including its annual report on Form 10-K dated March 31, 1997, and
Form 10-Q dated June 30, 1997, particularly the discussion of "Risk Factors"
contained therein.
NOTE: STAR TREK and related marks are trademarks of Paramount Pictures.
MAGIC: THE GATHERING is a registered trademark of Wizards of the Coast, Inc.
MechWarrior is a registered trademark and MechCommander is a trademark of FASA
Corporation. 7TH LEGION is a trademark of Epic MegaGames. STARSHIP TROOPERS
is a trademark of TriStar Pictures. MicroProse is an authorized user and
official licensee of these marks.
FALCON, MI TANK PLATOON, X-COM, SID MEIER'S CIVILIZATION, and MICROPROSE
are registered trademarks and EUROPEAN AIR WAR, GUARDIANS: AGENTS OF JUSTICE,
X-COM: INTERCEPTOR and X-COM: APOCALYPSE are trademarks of MicroProse, Inc. or
its subsidiaries.
MICROPROSE, INC.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, March 31,
1997 1997
(unaudited)
ASSETS
Current assets:
Cash and equivalents $ 34,959 $ 47,110
Accounts receivable, less allowances
of $5,330 and $6,568 8,598 7,891
Inventories 2,060 4,042
Prepaid royalties 5,488 2,139
Other current assets 1,292 1,958
Total current assets 52,397 63,140
Property and equipment, net 7,924 7,802
Investments 3,445 6,050
Other assets 4,100 3,313
$ 67,866 $ 80,305
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,808 $ 3,508
Salaries, wages and related accruals 4,411 6,337
Royalties payable 1,844 1,840
Current portion of redeemable preferred
stock 2,702 --
Other current liabilities 6,383 7,122
Total current liabilities 19,148 18,807
Long-term debt 32,445 32,739
Other liabilities 1,327 1,280
Total liabilities 52,920 52,826
Redeemable preferred stock, net of current
portion 3,179 5,881
Stockholders' equity 11,767 21,598
$ 67,866 $ 80,305
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