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Technology Stocks : Electronics Boutique (ELBO) -- Ignore unavailable to you. Want to Upgrade?

To: ratherbelong who wrote (543)	9/14/1999 8:51:00 AM
From: joel3	Read Replies (2) \| Respond to of 779

Electronics Boutique Announces Record Single Day Sales in Conjunction With Sega Dreamcast Release biz.yahoo.com Tuesday September 14, 7:33 am Eastern Time Company Press Release SOURCE: Electronics Boutique Holdings Corp. -- Number One Retailer for Sega Dreamcast on Day of Release -- Sales More Than Double Any Previous Console System Launch -- Dreamcast Expected To Perform Solidly Through Holidays WEST CHESTER, Pa., Sept. 14 /PRNewswire/ -- Electronics Boutique Holdings Corp. (Nasdaq: ELBO - news), one of the world's largest specialty retailers of electronic games, today announced that the launch of Sega's Dreamcast on September 9, 1999, resulted in the Company's largest single day of sales in its 22 year history, as well as the largest single day of sales on its EBWorld.com website. The launch of the Sega Dreamcast system exceeded the Company's expectations, resulting in initial-shipment sales more than double any previous console system. As a result of the overwhelming consumer demand, Electronics Boutique had completely pre-sold its initial allocation of the system several weeks prior to the release. Joseph J. Firestone, President and Chief Executive Officer, commented, ''Traditionally, our strongest day of the year coincides with the Christmas holiday. To have sales of this magnitude in September is truly an event. Many of our stores opened at midnight on the 9th and experienced heavy traffic flow. Our Sunset Galleria store in Las Vegas pre-sold more than 700 units, making it our top performing store on the initial release day.'' ''We are also very pleased by our ability to sell numerous games and accessories with each purchase. On average, we sold more than two pieces of software and two accessories with each piece of hardware,'' continued Mr. Firestone. ''In addition to the single day totals, we are very encouraged by sales through the weekend. Based on our observations of demand and feedback from consumers, we believe the Dreamcast system will continue to perform solidly through the holiday season. It has been nearly three years since the gaming world has experienced this level of technology innovation and consumers are clamoring for the new excitement,'' concluded Mr. Firestone. Currently, there are 18 games available for the Dreamcast system, with approximately 20 to 25 more scheduled for release before the holidays. The top three sellers during the past weekend included Sega Sport's NFL 2000 (a thrilling realistic football simulation), Sega's Sonic Adventure (a 360-degree 3-D adventure with the world's fastest hedgehog), and Namco-Hometek's Soul Calibur (a top arcade game now available on Dreamcast). Electronics Boutique is one of the leading specialty retailers of video and computer games and also sells video game hardware, PC productivity software and accessories. The company currently operates 567 stores in 46 states, Puerto Rico, Canada, Australia and South Korea, primarily under the names Electronics Boutique and Stop 'N Save Software. The company has also established a separate e-commerce division, EBWorld.com, Inc., to accelerate the growth of its Internet business. The Company's website can be found at ebworld.com . This press release contains ''forward-looking statements.'' Electronics Boutique (''EB'') is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, EB's dependence on the continued introduction of new and enhanced video games and PC hardware and software; the cyclical nature of the video game market; the rapid technological changes which occur in the video game and PC industry; EB's ability to open and operate new stores on a profitable basis; the intensely competitive nature of the electronic game industry and its rapid changes in consumer preferences and frequent new product introductions; the seasonal nature of the retail industry; EB's dependence on its suppliers for products; risks inherent to conducting international operations; and consumer spending patterns and prevailing economic conditions. Please refer to Electronics Boutique's Annual Report on Form 10-K on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. SOURCE: Electronics Boutique Holdings Corp.

To: ratherbelong who wrote (543)	9/15/1999 9:31:00 PM
From: Top Jim	Read Replies (1) \| Respond to of 779

RBL, Thanks for the reply. I've been hearing 1M Dreamcast build schedule for '99. Did you state that the build sched will allow for 1.5M before 12/31 or is it 500K avail between 1/1/00 and 9/8/00? Am figuring ELBO will get 1/3 of allocations. Thought I'd chime in with an earnings estimate of my own: Based on 80K units allocated to ELBO this year plus avg. of 1.5 games per system Dreamcast should account for $40M in revenue in '99. I'm estimating 40 cents on the dollar would have been spent by gamers at ELBO anyway so only 60% of the $40M is incremental revenue/profit. ELBO gross margins are 26-27% but this includes mgmt fees and probably a higher revenue mix for games vs. consoles vs. Dreamcast. So I'm estimating 22% for Dreamcast margins. Therefore, incremental EPS from Dreamcast in '99 should be $0.26 minimum. Not sure how much baked into estimates of $0.10 for this Q and $0.97 for next, but I think we'll see an extra .03-.05 this quarter surprise plus another dime in Q4. EPS then of $0.14 and $1.07 for the next 2 Q's. If we get a couple killer games for N64 and Playstation it could be even better. With better earnings and growth rates we should see the spread grow again. Expect earnings revisions, more analyst coverage, more great press and announcements to help close the gap. Relative to ratios in S&P we should carry a P/E of 30 or better. Net: while this stock has come a long ways in the last 6 weeks it still has plenty of room to move higher. Best regards, TJ