3Q results
MAINFRAME ENTERTAINMENT, INC. ANNOUNCES THIRD QUARTER, NINE MONTH RESULTS
Vancouver, Canada, March 2, 1999, - MAINFRAME Entertainment, Inc. (TSE: MFE) today announced results for the third quarter and first nine months of fiscal 1999, ended December 31, 1998.
For the three months ended December 31, 1998, revenue increased 66% to $12.1 million from $7.3 million for the same period last year. Net earnings for the third quarter ended December 31, 1998 were $0.9 million, or $0.06 per share, compared to a net loss of $2.1 million, or $0.17 per share, for the same period last year.
Revenue for the nine months ended December 31, 1998 was $12.4 million compared to $11.9 million, for the same period last year. The net loss for the nine months ended December 31, 1998 was $8.9 million, or $0.65 per share, compared to a net loss of $7.5 million, or $0.65 per share, for the same period last year.
For the nine months ended December 31, 1998, the Company delivered a total of 21 episodes including the first 13 episodes of War Planets™ (Shadowraiders™ in Canada) and eight episodes of Beast Wars™--Transformers™ (Beasties™ in Canada). All 21 episodes were delivered in the third quarter. In the same nine month period a year ago, the Company delivered a total of 21 episodes including 16 episodes of ReBoot™ and five episodes of Beast Wars.
During the third quarter ended December 31, 1998, Mainframe recognized a non-cash charge of $870,000, or $0.07 per share, related to its investment in software for motion simulation rides. This charge was taken as a result of IMAX(R) Corporation's recent announcement to significantly reduce the investment in its motion simulation assets including those of Ridefilm Corporation. Without the effect of this charge in the third quarter, the Company earned $1.8 million, or $0.13 per share.
Mr. Christopher Brough, Chief Executive Officer of Mainframe, commented, "Our strength in computer generated television programming is clearly evidenced by the fact that two of our most current series, Beast Wars and Shadowraiders, continue to rank amongst the top rated shows in Canada, and in U.S. syndication."
Mr. Ian Pearson, President of Mainframe added, "Additionally, ReBoot will be debuting daily next month on the Time/Warner Cartoon Network, and Beast Wars, now entering its fourth season of production, will be telecast daily on the Fox Family Channel across America starting this fall. Add to this the Fall '99 worldwide debut of our new series Weird-Ohs™, and we will have four first run series being telecast across the world."
Mr. Christopher Brough concluded, "Our new Shadowraiders toy line, manufactured by Trendmasters, Inc., will be hitting the retail market next month, providing Mainframe with another viable revenue opportunity."
Mainframe Entertainment is a publicly traded company on the Toronto Stock Exchange under the symbol MFE. The Company produces computer-generated imagery (CGI) animation for television, motion pictures, interactive media and motion picture rides from its state-of-the-art production facility located in Vancouver, Canada. Founded in 1993, the Company presently employs over 240 animators, technicians and production personnel, and has won many prestigious awards for its creative and technical innovation. |
