3DO Announces First Quarter Results; Company Reports Software Revenues of $9.5 Million vs. $2.3 Million a Year Ago
Wednesday July 29 5:14pm
BusinessWire
REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 29, 1998--The 3DO Company (NASDAQ:THDO) today announced its results for its first quarter ending June 30, 1998.
The software revenue for the quarter is one of the largest reported in the Company's history and exceeded the revenue from the Company's software business for the entire 1998 Fiscal Year.
On the strength of its best-selling Might and Magic(R) VI and Army Men(tm) releases, the Company reported first fiscal quarter software revenues of $9.5 million compared to $2.3 million in software revenues for the comparable period in the prior fiscal year. Software revenues for the entire 1998 Fiscal Year were $9.4 million. Including $12.1 million in hardware related revenues, last year the Company reported total June quarter revenues of $14.4 million.
The Company reported a net loss of $2.6 million, or a net loss of $0.10 per share for the June quarter, compared to a net income of $21.2 million, or $0.72 per share, for the same period in the previous fiscal year. The income for the comparable quarter included a one time gain of $18.0 million from the sale of certain assets associated with the Company's former hardware business, as well as the income associated with the $12.1 million in hardware related revenues. Excluding the impact of the hardware business, the prior year June quarter net loss for the software business was $6.1 million or a net loss of $0.21 per share.
Operating expenses for the first quarter were $9.9 million compared to $10.2 million in the same period for the prior fiscal year. The Company ended the quarter in a strong financial position with a cash balance of $26.2 million.
"These results show the speed of progress we are making as a video game publisher. The quality of our games is being reflected in our high revenue growth rate and our outstanding sell-through of our recent games in the marketplace," said Trip Hawkins, president and CEO, The 3DO Company.
During the quarter, 3DO shipped Might and Magic VI and Army Men for the PC. Since their release, both products have received critical acclaim from the industry and have been a hit with both retail and consumers while remaining in the top ten lists at major retailers. As a result, the Company climbed to the No. 4 spot on the PC Data May sell-through report among all PC game publishers. Also during the quarter, the Company launched its new fall line-up with much success at the Electronics Entertainment Expo, the game industry's biggest tradeshow.
The first fall release, TOCA Championship Racing(tm), is a result of a licensing deal for one of Europe's leading racing titles. The PlayStation and PC versions of the product will be published under the 3DO label marking the Company's first entrance into the PlayStation market. Other upcoming products include Army Men 3D and Uprising X for the PlayStation and Vegas Games(R) 2000, Uprising 2, Requiem Wrath of the Fallen(tm), and Heroes of Might and Magic(R) III for the PC.
"Every new game we have released in the last year has been critically acclaimed, but our most recent releases show that we are learning the marketing techniques to achieve higher sales rates," continued Hawkins. "Our strategy of building highly-focused internal studios is working."
This release contains forward-looking statements that are subject to risks and uncertainties. Potential risks and uncertainties include, without limitation, the Company's ability to develop and ship future products, market demand and acceptance for the Company's current and future software products, and the consequences of competitive factors in the marketplace. Further information on potential factors which could affect these forward-looking statements and the Company's financial results are included in the Company's filings with the Securities and Exchange Commission, including the Company's Report on Form 10-K for the fiscal year ended March 31, 1998.
The 3DO Company, headquartered in Redwood City, Calif., develops, publishes and distributes interactive entertainment software for personal computers, the Internet, and advanced entertainment systems such as the PlayStation and Nintendo 64. 3DO markets and publishes its products worldwide under multiple brand names including New World Computing, Cyclone Studios, and Team .366. More information about 3DO products and the full text of certain press releases can be found on the Internet at 3do.com.
Note to Editors: 3DO, Army Men, Might and Magic, Requiem Wrath of the Fallen, Uprising, Vegas Games, Team .366, Cyclone Studios, New World Computing, and their respective logos, are trademarks or registered trademarks of The 3DO Company in the U.S. and/or other countries. All other trademarks belong to their respective owners. -0- *T
THE 3DO COMPANY
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
Three Months ended June 30
1998 1997
Revenues $ 9,533 $ 14,363
Cost of revenues 2,519 $ 1,064
Gross profit 7,014 13,299
Operating expenses:
Research and development 5,523 6,503
Sales and marketing 1,875 1,077
General and administrative 2,488 2,638
In-process R&D - -
Total operating expenses 9,886 10,218
Operating profit(loss) (2,872) 3,081
Gain from sale of the Systems business 0 18,032
Net interest and other income 435 189
Profit(loss) before provision for
income and foreign withholding taxes (2,437) 21,302
Provision for income and foreign
withholding taxes 130 73
Net profit(loss) $ (2,567) $ 21,229
Basic net income(loss) per share $ (0.10) $ 0.75
Diluted net income(loss) per share (0.10) $ 0.72
Shares used to compute basic net
income(loss) per share 25,653 28,460
Shares used to compute diluted net
income(loss) per share 25,653 29,624
Consolidated Condensed Balance Sheets
(In thousands)
June 30, 1998 March 31, 1998
Assets
Cash, cash equivalents and
short-term investments $ 26,214 $ 34,584
Accounts receivable, net 6,391 216
Other current assets 1,844 838
Total current assets 34,449 35,638
Property and equipment, net 3,305 3,336
Other assets 1,372 1,473
Total assets $ 39,126 $ 40,447
Liabilities & Stockholders' Equity
Accounts payable $ 503 $ 495
Deferred revenue 104 352
Current portion of capital
lease obligations 71 335
Other current liabilities 6,841 5,687
Total current liabilities 7,519 6,869
Other liabilities 0 0
Total liabilities 7,519 6,869
Stockholders' equity 31,607 33,578
Total liabilities and
stockholders' equity $ 39,126 $ 40,447
*T
Contact: The 3DO Company
ÿ John Adams, 650/261-2692
ÿ Tuesday Uhland, 650/261-3142
Source: BusinessWire
|
