3DO Announces Fourth Quarter and Fiscal Year End
Results; Might and Magic VI and Army Men Rank No. 1
and No. 3 in Sell-Through
REDWOOD CITY, Calif.--(BUSINESS WIRE)--May 13, 1998--The
3DO Company (NASDAQ:THDO) today announced its results for the
fourth quarter and fiscal year ended March 31, 1998. And, in April, 3DO shipped Might and Magic(R) VI and Army Men(TM), which are in the
top five in retail sell-through for PC games. These recent product
launches solidify 3DO's progress and growth in the entertainment
software publishing business.
For the fourth fiscal quarter, the Company reported a net loss of $6.3
million, or $0.25 per share, compared to a net income of $14.0 million, or $0.49 per share, for the comparable period in the previous fiscal year. The Company's revenue for the fourth quarter was $1.6 million compared to $28.8 million for the same quarter in the prior fiscal year. The decrease versus the prior year is attributable to 3DO's sale of its hardware business in June of this fiscal year.
Operating expenses for the quarter were $7.7 million, down 45% from
the $14.1 million recorded in the fourth quarter of the prior fiscal year. The Company also finished the quarter with $34.6 million in cash and cash equivalents as it completed a successful transition from the
hardware business to the entertainment software publishing business.
For the fiscal year ended March 31, 1998, 3DO reported a profit of $22.5 million or $0.83 per share, an 69% increase, compared to $13.3 million or $0.46 per share for the prior fiscal year.
"As a leading contender in the Game Software Industry, 3DO has the
cash, management, development teams, and games to make 1998 a year
of continuity and success," said Trip Hawkins, Chairman and CEO, The
3DO Company. "These results show that we continue to be very
resourceful with our cash reserves as we build our software business and prepare for growth during the next year."
The building blocks are in place for the future of 3DO as a software
publisher, with the multitude of successes from its recent product
launches. During the quarter 3DO shipped High Heat Baseball(TM) '99
for the PC which has received consumer and media praise for the robust
gameplay experience and passion that other baseball franchises have lost over the years. The game has continually won side by side comparisons against the genre's top contenders eliciting comments like, "The best game of baseball any computer has ever played."
Shortly following the quarter, 3DO successfully launched Might and
Magic(R) VI and Army Men(TM), also for the PC. Both products are
currently in the top five at most specialty retail outlets and are in limited supply due to the high consumer demand. In at least one major national retail chain, the games are ranked number one and number three in retail sales.
"We are totally committed to gaming and our first products this year
validate our mission to bring people only the best games," continued
Hawkins. "It's a distinct advantage for 3DO that our current products are being developed by internal studios, giving us complete control over their design and quality. With more than eight products slated for this fall, including our first entrants into the console space, we are ready, willing, and able to keep delivering all the passion, all the quality, and all the fun in all of our future games."
This release contains forward-looking statements that are subject to risks and uncertainties. Potential risks and uncertainties include, without limitation, the Company's ability to develop and ship future products, market demand and acceptance for the Company's current and future software products, and the consequences of competitive factors in the marketplace. Further information on potential factors which could affect these forward looking statements and the Company's financial 3DO Fourth Quarter Results/Page 3 results are included in the Company's filings with the Securities and Exchange Commission, including the Company's Reports on Form 10-Q for the fiscal quarter ended December 31, 1997 and the Company's Report on Form 10-K for the
fiscal quarter ended March 31, 1998.
The 3DO Company, headquartered in Redwood City, Calif., develops,
publishes and distributes interactive entertainment software for personal computers, the Internet, and advanced entertainment systems such as the PlayStation. 3DO markets and publishes its products worldwide under multiple brand names including New World Computing, Cyclone Studios, and Team .366. More information about 3DO products and the full text of certain press releases can be found on the Internet at 3do.com.
THE 3DO COMPANY
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
Three Months ended Twelve Months ended
March 31, March 31,
------------------ ------------------
1998 1997 1998 1997
-------- -------- -------- --------
Revenues $ 1,550 $ 28,826 $ 38,890 $ 92,350
Cost of revenues 571 1,210 3,959 7,989
-------- -------- -------- --------
Gross Profit 979 27,616 34,931 84,361
Operating expenses:
Research and development 4,732 9,412 19,147 42,077
Sales and marketing 2,125 1,960 5,612 8,043
General and administrative 829 2,706 7,322 11,310
In-process R&D - - - 7,700
-------- -------- -------- --------
Total operating expenses 7,686 14,078 32,081 69,130
Operating income (loss) (6,707) 13,538 2,850 15,231
Gain from sale of the
Systems group - - 18,032 -
Net interest and other
income 505 437 1,874 2,115
-------- -------- -------- --------
Income (loss) before
provision for income
and foreign
withholding taxes (6,202) 13,975 22,756 17,346
Provision for income and
withholding taxes 136 5 219 4,075
-------- -------- -------- --------
Net income (loss) $ (6,338) $ 13,970 $ 22,537 $ 13,271
======== ======== ======== ========
Net income (loss) per
share - basic $ (0.25) $ 0.50 $ 0.85 $ 0.48
======== ======== ======== ========
Net income (loss) per
share - diluted $ (0.25) $ 0.49 $ 0.83 $ 0.46
======== ======== ======== ========
Shares used to compute
net income (loss) per
share - basic 25,548 28,141 26,387 27,662
======== ======== ======== ========
Shares used to compute
net income (loss) per
share - diluted 25,548 28,558 27,114 28,935
======== ======== ======== ========
Consolidated Condensed Balance Sheets
(In thousands)
March 31, 1998 March 31, 1997
-------------- --------------
Assets
Cash, cash equivalents &
short-term investments $ 34,584 $ 33,617
Accounts Receivable, net 216 429
Other current assets 838 1,861
-------------- --------------
Total current assets 35,638 35,907
Property and equipment, net 3,336 6,681
Other assets 1,473 2,366
-------------- --------------
Total assets $ 40,447 $ 44,954
============== ==============
Liabilities & Stockholders' Equity
Accounts payable $ 495 $ 569
Deferred revenue 352 11,992
Current portion of capital
lease obligations 335 807
Hardware incentive - 2,944
Other current liabilities 5,687 5,528
-------------- --------------
Total current liabilities 6,869 21,840
Other liabilities - 1,715
-------------- --------------
Total liabilities 6,869 23,555
Stockholders' equity 33,578 21,399
-------------- --------------
Total liabilities and
stockholders' equity $ 40,447 $ 44,954
============== ==============
3DO, High Heat, Army Men, Might and Magic, Team .366, Cyclone
Studios, New World Computing, and their respective logos are
trademarks and/or registered trademarks of The 3DO Company. (c)
1998 The 3DO Company. All rights reserved
CONTACT: The 3DO Company
John Adams, 650/261-2692
Tuesday Uhland, 650/261-3142 |
