Ugly. Horrible. Hope everyone got out in time.
I used to own thousands of shares but sold them in the 5 3/4 - 7 1/4
range. Thank God -- there is serious danger here of MPRS being de-
listed from the NASDAQ due to more losses and insufficient
shareholder equity.
MicroProse Says Costs, Lost Momentum From Aborted GT Merger to Result in 3rd Quarter Loss of $7-$10 Million on Anticipated Revenues of $17-$20 Million
PR Newswire, Friday, December 05, 1997 at 17:17
ALAMEDA, Calif., Dec. 5 /PRNewswire/ -- MicroProse, Inc. (NASDAQ:MPRS)
said today that expenses and lost momentum attributable to its now-ended plan
to merge with GT Interactive Software will result in a net loss of between
$7 million and $10 million on revenues of $17 to $20 million for the third
fiscal quarter which ends December 28th.
The company will report actual results for the quarter in January.
Stephen M. Race, MicroProse's chief executive officer, said "despite the
significant but short-term dislocations caused by the abandoned merger plan,
we remain extremely positive about fiscal 1999 and our outlook as an
independent company. We believe we have sufficient cash, a very strong lineup
of new products nearing completion, and a strong senior management team that
remains intact."
"We are already refocusing our business plan into that of an independent
company, which requires some rebuilding or retooling in several areas of our
operations that were affected by the anticipated merger. Our five product
development studios remain intact and we have already begun to revitalize our
domestic distribution channels and attract new sales people in the U.S.," Race
said.
He said, "In essence, the two months spent on determining how to integrate
the two companies has resulted in at least a quarter's worth of slippage in
our business plan and product release schedule. In this current quarter,
MicroProse has shipped Worms2(TM) to Europe, where it has already shipped
160,000 units, and the Civ II Fantastic Worlds(TM) sequel. In the fourth
fiscal quarter, it is now our goal to release M1 Tank Platoon(R) II; Magic:
The Gathering(R) Duels of the Planeswalkers(TM) -- which will be our first
network version of the Magic(R) game; the U.S. version of Worms2; Ultim@te
Race Pro(TM), and Addiction Pinball(TM). In the first quarter of fiscal 1998,
we currently anticipate releasing: Falcon(R) 4.0, Ultimate Civilization II(TM)
-- the first internet version of that series, and Guardians: Agents of
Justice(TM). Other titles -- including sequels to or expansions of some of
our most popular titles -- are on stream to be launched during the balance of
the fiscal year, these include MechWarrior(R) 3, StarTrek: The Next
Generation(TM) Klingon Honor Guard(TM), StarTrek: The Next Generation(TM)
Birth of the Federation(TM), Starship Troopers(TM), X-COM: Interceptor(TM),
and MiG 29(TM)."
MicroProse is a leading developer and publisher of interactive
entertainment software for use on CD-ROM-based personal computers. The
company also is developing software for use on Internet and online gaming
services. MicroProse has its headquarters in Alameda, California and employs
approximately 400 people worldwide. Its five development studios are located
in Alameda, California; Hunt Valley, Maryland; Chapel Hill, North Carolina;
Austin, Texas; and Chipping Sodbury, England. Products are available
worldwide and are sold through major distributors, retailers, and mass
merchants. MicroProse is located at microprose.com on the World
Wide Web.
Statements in this press release regarding future operating results and
product releases are forward-looking statements. Actual results may differ
from those projected in any such statements due to various factors, including:
(i) the company's ability to meet its product release schedules; (ii) the
degree of market acceptance of MicroProse's products; (iii) the introduction
of products competitive with those of MicroProse; (iv) the timing and market
acceptance of new hardware and software product introductions; (v) the size
and growth rate of the consumer software market; (vi) the seasonality of
sales; (vii) development and promotional expenses relating to the introduction
of new products or new versions of existing products; (viii) product returns
and markdowns; (ix) changes in pricing policies by MicroProse and its
competitors; (x) the accuracy of retailers' forecast of consumer demand; (xi)
the timing of orders from major customers; (xii) order cancellations; (xiii)
delays of shipments; and (xiv) write-offs of advance royalty payments. In
particular, as with all software products, until all aspects of the
development and initial distribution of the company's games are completed,
there can be no assurance of product release dates. For a discussion of
additional factors that could cause actual results to differ, please see the
company's publicly available Securities and Exchange Commission filings.
SOURCE MicroProse, Inc.
-0- 12/05/97
/CONTACT: Howard Kalt of Kalt, Rosen & Associates, 415-397-2686, for
MicroProse, Inc./
/Web site: microprose.com
Companies or Securities discussed in this article:
Symbol Name
NASDAQ:MPRS
- |
