THE NUMBERS
GT Interactive Software Corp. And Subsidiaries Consolidated Statements Of Operations (unaudited)
For The Quarter Ended September 30, 1996 1997 (in thousands)
Net sales $86,192 $120,990
Cost of goods sold 47,684 65,767
Selling expenses 17,709 26,671
General and administrative expenses 8,223 13,619
Income before amortization of goodwill, interest and other income (expense), net and income taxes 12,576 14,933
Amortization of goodwill 273 283
Interest and other income (expense), net 575 (612)
Provision for income taxes 4,148 5,512
Net income $8,730 $8,526
Net income per share $0.13 $0.13
Weighted average number of shares outstanding 69,217 67,032
For The Nine Months Ended September 30, 1996 1997 (in thousands)
Net sales $230,475 $317,108
Cost of goods sold 130,232 183,813
Selling expense 50,757 65,699
General and administration expenses 22,918 35,679
Income before amortization of goodwill, interest and other income (expense), net and income taxes 26,568 31,917
Amortization of goodwill 819 913
Interest and other income (expense), net 2,827 (990)
Provision for income taxes 11,951 12,565
Net income $16,625 $17,449
Net income per share $0.24 $0.26
Weighted average number of shares outstanding 68,903 67,600
CONTACT: (media) (investors) Allyne Mills Dawn Berrie 212/726-4202 212/726-4235
BW1502 NOV 03,1997 13:13 PACIFIC 16:13 EASTERN( BW)(GT-INTERACTIVE)(GTIS) GT Interactive Reports 40 Percent Increase in Third Quarter Revenues Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 3, 1997-- Internally Developed Products Drive Strong Product Revenues Sales Increase in all Business Segments GT Interactive Software Corp. (NASDAQ: GTIS) today reported third quarter net revenues of $121 million for the period ended September 30, a 40 percent increase over the same period in the prior year. Operating income before goodwill amortization was $15 million for the quarter, an increase of 19 percent. Net income was $8.5 million, a 2.3 percent decrease from the prior year. Net income declined despite the 19 percent growth in operating income due to the significant increase in interest expense and higher federal tax rates in the current quarter. Earnings per share were $0.13 for both the quarter and the prior year quarter. For the quarter, the company reported interest expense of $612,000 as compared to interest income of $575,000 in the prior year third quarter. Income tax expense increased 33 percent as compared to the same period last year, during which time the company experienced a benefit from its acquisition of Humongous Entertainment. For the nine months ended September 30, 1997, GT Interactive reported net revenues of $317 million, a 38 percent increase over the same period last year. Operating income before goodwill amortization for the nine months increased 20 percent to $32 million and net income was $17.4 million, representing a five percent increase. Earnings per share were $0.26, an eight percent increase. "A significant 42 percent of our publishing revenues this quarter were driven by sales of internally developed products, including Cavedog Entertainment's Total Annihilation and Oddworld Inhabitants' Oddworld: Abe's Oddysee, a testimony to strength of these new titles in the global marketplace, as well as GT Interactive's ability to create compelling, original brands for both PC and console systems,"said Ron Chaimowitz, president and chief executive officer of GT Interactive. "This continues to be a pivotal growth year for the company, as we have truly transformed ourselves into a major publisher with proven internal and external development, strengthened global distribution and a broad portfolio of both console and PC entertainment products." GT Interactive also reported the following results during its third quarter: -- GT Interactive's publishing business accounted for 68 percent of revenues as compared to 63 percent in its second quarter. Front-line publishing revenues increased 56 percent, while value-price publishing revenues increased 36 percent; -- Sales of console titles comprised 38 percent of the company's front-line software revenues, which represents a 28 percent increase over the same period last year; -- More than 500,000 units of Oddworld: Abe's Oddysee for PlayStation and more than 250,000 units of Total Annihilation for PC shipped worldwide. Internally developed software, including these two titles, comprised 42 percent of publishing revenues; -- International revenues, which increased 92 percent over last year, comprised 58 percent of publishing revenues. International console revenues increased 312 percent over the prior year third quarter; -- Revenues from GT Interactive's mass merchant distribution business increased 22 percent over last year. "The acquisition in the fourth quarter of developer SingleTrac and our announced acquisition of MicroProse, which is expected to be completed by year-end, further solidifies our strength. We anticipate that in 1998 more than 75 percent of our revenues will be derived from publishing, and approximately 30 percent of publishing revenues will come from our internal studios," Chaimowitz continued. "We believe the approaching holiday season will be especially significant for the global console market, and GT Interactive is well-positioned with a diverse, award-winning lineup," Chaimowitz said. "For PlayStation, the underwater combat game, Critical Depth, will debut from SingleTrac, our newest studio, and new Duke Nukem games will appear for the first time on PlayStation and Nintendo 64. We expect strong reorders for Oddworld: Abe's Oddysee for PlayStation-- which will also be released on PC -- and reorders for Cavedog Entertainment's Total Annihilation, our top-selling, internally developed, real-time strategy game." Headquartered in NY, GT Interactive Software Corp. is a leading global publisher of interactive entertainment and edutainment under the GT Interactive, Humongous Entertainment, Cavedog Entertainment, SingleTrac and MacSoft brands, for personal computers as well as game consoles from Sony and Nintendo. A leader in value-priced software under the WizardWorks, CompuWorks and Slash brands, GT Interactive operates development studios in Seattle, Salt Lake City and San Luis Obispo, CA. Located at gtinteractive.com on the World Wide Web, GT Interactive is publicly traded on the NASDAQ market under the symbol GTIS. Certain statements contained in this press release may be deemed forward-looking statements that involve a number of risks and uncertainties. The company's actual results may differ materially from the expectations expressed in such forward-looking statements. Among the factors that could cause actual results to differ materially are worldwide business and industry conditions, including consumer buying and retailer ordering patterns, product delays, company customer relations, retail acceptance of the company's published and third-party titles, competitive conditions, failure to consummate the announced merger agreement with MicroProse or failure to successfully integrate the operations of the two companies if the merger is consummated, and other risks detailed, from time to time, in the company's SEC filings, including, but not limited to, the company's form 10-K for the year ended December 31, 1996. --30--rg/ny* CONTACT: (media) (investors) Allyne Mills Dawn Berrie 212/726-4202 212/726-4235 amills@gtinteractive.com dberrie@gtinteractive.com
Cheers
Bill
PS Abe & T/A constittuted 42% of Q3 Revs !!! |
