LUST had an interesting report with a 101% revenue increase.
Monday LUST announced that it will begin developing ''pay to play'' games to be
played over the Internet that allow players to win cash prizes. The share price jumped
the very same day from 1 5/32 to 3 23/32. Yesterday it settled around 1 3/4.
Look at the press release and do your own DD.
Thursday May 21, 8:40 am Eastern Time
Company Press Release
Adrenalin Interactive Inc. Announces Results for the Third
Quarter Fiscal 1998
Reports Revenue Increase
LOS ANGELES--(BUSINESS WIRE)--May 21, 1998--Adrenalin Interactive Inc.
(NASDAQ:LUST -
news), formerly Wanderlust Interactive Inc., today announced its financial results for the
third quarter and nine
months ended March 31, 1998.
Revenues for the three months ended March 31, 1998 rose 101% to $900,889
compared to $448,949 for the
same period a year ago. For the nine months ended March 31, 1998, revenues were
$2,243,241 compared to
$743,336. These increases were derived largely from revenues generated by Western
Technologies, acquired in
February 1997, as a result of which the Company increased its projects in the funded
development of video and
computer games and has received significant new royalties.
Excluding non-cash depreciation and amortization expenses of $168,023, the results are
a positive $20,370 for
the three months ended March 31, 1998, compared to a negative of $1,134,160 in the
previous year period
when non-cash depreciation and amortization were excluded.
The net loss for the quarter ended March 31, 1998 was $147,653, or $(0.02) per
share on weighted average
shares outstanding of 6,619,572, compared to net losses of $1,416,597, or $(0.33) per
share on weighted
average shares outstanding of 4,303,952, for the comparable period a year earlier. The
net loss for the nine
months ended March 31, 1998 was $1,098,626, or $(0.19) per share on weighted
average shares outstanding
of 5,872,620, compared to net losses of $3,513,009, or $(0.89) per share on weighted
average shares
outstanding of 3,943,797 for the comparable period a year earlier.
Mr. Jay Smith, President and CEO, noted, ''As our recent results attest, we have made
tremendous progress
over the past year in the areas of interactive entertainment and software development
and we have seen a
substantial increase in revenues from development contracts and royalties. We see many
new and exciting
opportunities ahead. As a consequence, at the recent annual meeting the shareholders
voted to change the name
of the Company to Adrenalin Interactive Inc., a name well regarded in the software
development field and one
which is representative of the directions that the Company is taking. We look forward to
reporting our further
progress.''
Adrenalin Interactive Inc. develops interactive entertainment titles on PC computers and
the internet, console
video games for Sony, Nintendo and Sega, and creates interactive television
programming for digital set-top
boxes. The Company also develops on-line ''pay-to-play'' interactive games for the
World Wide Web. In
February 1997, the Company acquired the operations of Western Technologies, a
well-established video and
computer game developer and electronic toy designer, which has done business as
Adrenalin Entertainment or
Western Technologies since 1980.
This release contains certain forward-looking statements which involve known and
unknown risks, uncertainties
or other factors not under the Company's control, which may cause actual results,
performance or achievements
of the Company to be materially different from the results, performance or other
expectations implied by these
forward-looking statements. These factors include, but are not limited to, those detailed
in the Company's
periodic filings with the Securities and Exchange Commission.
ADRENALIN INTERACTIVE, INC. AND SUBSIDIARY
Consolidated Statements of Operations
Three months ended Nine months ended
March 31, March 31,
1998 1997 1998 1997
Revenues:
Product sales $0 $68,312 $2,367 $106,312
Development
contracts 469,153 199,800 1,303,303 199,800
Royalties 431,736 180,837 937,571 437,224
--------- --------- --------- ---------
900,889 448,949 2,243,241 743,336
Expenses:
Cost of product
sales 0 50,042 0 100,084
Cost of development
contracts 281,825 281,421 858,256 281,421
Research and
development 0 478,925 236,592 2,003,645
Selling, general
and administrative 586,784 793,145 1,460,366 1,500,641
Depreciation and
amortization 168,023 282,437 742,631 429,943
Interest expense
(income), net 11,910 (20,424) 44,022 (59,389)
--------- --------- --------- ---------
1,048,542 1,865,546 3,341,867 4,256,345
Net loss $(147,653) $(1,416,597) $(1,098,626) $(3,513,009)
Net loss per common
share basic and
diluted $(0.02) $(0.33) $(0.19) $(0.89)
Weighted average
shares outstanding 6,619,572 4,303,952 5,872,620 3,943,797
-0-
ADRENALIN INTERACTIVE, INC. AND SUBSIDIARY
Consolidated Balance Sheet
ASSETS March 31,
1998
Current assets:
Cash and cash equivalents $253,695
Accounts receivable, net of reserve of $23,500 249,448
Costs and estimated earnings in excess of
billings on contracts in progress 14,340
Prepaid expenses 83,764
Other current assets 67,536
Total current assets 668,783
Fixed assets, net 634,132
Other assets:
License rights, advance royalty 125,000
Security deposits, and other 45,085
Patents and licenses, net 2,692,742
Capitalized software 36,746
Goodwill, net 1,631,653
---------
4,531,226
Total assets $5,834,141
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $767,497
Billings in excess of costs and estimated
earnings on contracts in progress 177,941
Notes and loans payable 482,594
Convertible debentures 102,500
Total current liabilities 1,530,532
Due to officer/shareholder 54,544
Commitments and contingency
Shareholders' equity:
Preferred stock, $0.01 par value; authorized
100,000 shares; issued and outstanding, none 0
Common stock, $0.01 par value; authorized
10,000,000 shares; issued and outstanding,
6,864,593 shares 68,647
Additional paid-in capital 12,122,272
Accumulated deficit (7,941,854)
Total shareholders' equity 4,249,065
Total liabilities and shareholders' equity $5,834,141
Contact:
Jay Smith, CEO
ADRENALIN INTERACTIVE INC.
(310) 821-7880, (310) 821-4251 fax
e-mail: jsmith@adrenalin.com
adrenalin.com
or
Stephen D. Axelrod, CFA
Nancy S. L. Block
Susan T. Bolen (Media)
WOLFE AXELROD ASSOCIATES
(212) 370-4500, (212) 370-4505 fax
e-mail: steve@wolfeaxelrod.com
More Quotes and News:
Wanderlust Interactive Inc (Nasdaq:LUST - news)
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