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Technology Stocks : NewKidCo International (OTC:NKCIF) (TSE:NKC) -- Ignore unavailable to you. Want to Upgrade?

To: Director who wrote (3642)	11/3/1999 3:22:00 PM
From: TheSlowLane	Read Replies (1) \| Respond to of 4231

NewKidCo International Inc. Announces Q3 1999 Results - Company Foresees Significant Revenue Growth and Plans To Raise Additional Capital BURLINGTON, Mass.--(BUSINESS WIRE)--Nov. 3, 1999-- The Adventures of Elmo in Grouchland(TM) for Game Boy(R) Color Ships, Four More Titles Expected to Ship in Q4 NewKidCo International Inc. (OTC BB:NKCIF.O) (TSE:NKC) today announced consolidated results for the third quarter and nine months ended September 30, 1999. For the three months ended September 30, 1999, the Company recorded sales of CND $2.7 million. In accordance with Canadian GAAP, the net loss from continuing operations for the quarter ended September 30, 1999, amounted to CND $764,000 or .06 cents per share. Under U.S. GAAP, the net loss from continuing operations for the quarter ended September 30, 1999, was CND $639,000 or .05 cents per share. The difference in the reported net loss under Canadian GAAP and U.S. GAAP from continuing operations arises primarily from the difference in the accounting treatment under Canadian GAAP and U.S. GAAP of the acquisition, by the Company of NewKidCo, LLC. This acquisition was completed during the second quarter of 1999. For the nine months ended September 30, 1999, the Company recorded sales of CND $14.5 million. In accordance with Canadian GAAP, the net earnings from continuing operations for the nine months ended September 30, 1999, amounted to CND $282,000 or .02 cents per share. Under U.S. GAAP, the net loss from continuing operations for the nine months ended September 30, 1999 was CND $1.2 million or .09 cents per share. Comparisons are not made to the prior year as the Company is now engaged in a fundamentally different business. During June 1999, the Company completed a private placement offering of Special Warrants for gross proceeds of CND $15 million. The Company foresees significant revenue growth and plans to raise additional equity capital. To finance this growth and to meet its commitments to licensors, NewKidCo will have to raise this capital in the next six months. Richard Rabins, CEO of NewKidCo International Inc. stated, "our third quarter results are in line with our expectations. NewKidCo is poised for significant growth as we look towards the next two quarters, which are typically our strongest selling periods. Our current titles continue to be very well received by our target market, the under 12 year old game player. Since our titles are fun, non-violent games, we believe that the purchasers of these games, parents and grandparents, will continue to recognize the value of our products during the upcoming gift giving season. Distribution of our product line via mass merchants, toy stores, electronics stores and software specialty retailers, is very strong. Additionally, our recent license agreements with Warner Bros. (the classic characters Tom & Jerry(R)) and Disney (Winnie the Pooh(R), Mulan(R), Doug(R) and Disney Classic characters) have provided us with new titles to produce and distribute in the year 2000. NewKidCo's future looks very bright and we look forward to continued strong growth in the distribution and sales of our present and future titles." In the fourth quarter, the Company expects to ship five titles, the first of which, The Adventures of Elmo In Grouchland for Game Boy Color, has begun shipping. The debut of the two 'Elmo' titles on Nintendo(R) 64, 'Hello Kitty' on Game Boy Color, and the first title from the recently signed Disney deal --Disney's Story Studio, Mulan will round out the scheduled fourth quarter offerings.