YES! ENTERTAINMENT CORPORATION (Nasdaq NM Symbol: YESS) today announced record financial results for the
third quarter and nine months ended September 30, 1996.
Revenues for the third quarter increased 59% to a record $29,636,000 from $18,610,000 reported for the third quarter ended
September 30, 1995. Net income for the period increased to $3,391,000, or $0.23 per share based on 14,913,000 weighted
average shares outstanding, compared to $3,080,000, or $0.29 per share based on 10,750,000 weighted average shares
outstanding, for the same period a year ago.
Revenues for the nine months ended September 30, 1996 increased 73% to a record $50,122,000 from $28,971,000
reported for the comparable year ago period. Net income for the first nine months of 1996 was a record $1,285,000, or $0.09
per share, based on 14,638,000 weighted average shares outstanding, compared to a net loss of $817,000, or $0.20 per
share, based on 4,021,000 weighted average shares outstanding, for the nine months ended September 30, 1995.
The Company noted that there was no tax provision in the year ago periods because it had posted a loss through the first nine
months of fiscal 1995.
Commenting on the results, Don Kingsborough, chairman and chief executive officer, stated, "The Company continued to see
strong sales of its YES! Gear(TM) line of products, including the recently introduced Yak Bakwards(TM), a hand-held device
that lets kids record their voice and then play it backwards, and Mega Mike(TM), a hand-held microphone with built-in sound
effects such as applause, cheering, booing, laughing, a buzzer and a rim shot. Additionally, our expanded line of Power
Penz(TM), toys that take form in fully functional ball point pens, also continued to show positive sales increases."
The Company noted that international sales in the three and nine month periods of 1996 showed a significant increase over the
same year ago periods as a result of the Company's successful efforts to enhance international sales, particularly in Pacific Rim
countries. Primarily as a result of the increase in international sales, gross margin decreased as a percentage of net sales due to
the fact that international sales have lower margins than domestic sales.
Mr. Kingsborough concluded, "We are pleased to note the Company was able to report a profit for the first nine months of
fiscal 1996. As we increase our marketing and advertising efforts in anticipation of the holiday selling season, we expect retail
sales of our exciting products to increase, and look forward to commencing shipments of V-Link(TM), YES!'s entry into
teenage communications, which we expect to take place in October."
YES! Entertainment Corporation develops, manufacturers and markets toys and other children's products, including a variety
of interactive and educational products. YES! uses existing technologies to design innovative products that are fun for children
and build on their natural creativity.
YES! ENTERTAINMENT CORPORATION is a registered trademark and YES!, YES! GEAR, YAK BAKWARDS,
MEGA MIKE, POWER PENZ, and V-LINK are trademarks of YES! Entertainment Corporation. MRS. FIELDS is a
registered trademark of the Mrs. Fields Development Corporation. (c) 1996 YES! Entertainment Corporation. All rights
reserved. |
