Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (44105)	9/3/1999 11:31:00 PM
From: A@P Trader	Read Replies (1) \| Respond to of 122087

The Company satisfies its capital requirements and seasonal working capital needs with cash flow primarily from borrowings and operations. The Company's primary capital needs have consisted of funding for business acquisitions, inventory, property, plant and equipment, customer receivables, letters of credit, entertainment character or corporate trademark licenses and international expansion. The Company has significantly underperformed relative to desired milestones toward the future minimum guaranteed royalty obligation for a particular entertainment character license. The Company is currently in negotiations and may receive some concessions from the licensor. However, the Company is unable to determine if the concessions, if any, would be sufficient to prevent the Company from incurring a loss from its inability to meet the minimum guaranteed royalties. Management is unable at this time to estimate the range of the loss. 5. WRITE-OFF OF ACCOUNTS RECEIVABLE During the third quarter of fiscal 1999, the Company wrote-off $3.3 million of accounts receivable related to the commencement of insolvency proceedings by the Company's Mexico distributor. The write-off was included in selling, general and administrative expenses. OTHER EVENTS On February 17, 1999, Play by Play Toys & Novelties, Inc.'s (the "Company") announced that Raymond Braun, who joined the Company in 1997 as Chief Financial Officer, was promoted to President and Chief Operating Officer. Mr. Braun fills a position previously held by Mark Gawlik, who has left the Company to pursue other interests. Mr. Gawlik is expected to resign as a member of the Company's Board of Directors. On July 22, 1999, Play By Play Toys & Novelties, Inc. (the "Company") received the resignation of James F. Place from his position as a Director of the Company. On August 25, 1999, Play By Play Toys & Novelties, Inc. (the "Company") received the resignation of Francisco Saez Moya from his position as President of Play By Play Toys & Novelties Europa, S.A. and Vice Chairman of the Board of Directors of the Company.