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Technology Stocks : eidos--maker of Tomb Raider -- Ignore unavailable to you. Want to Upgrade?

To: hl who wrote (1193)	8/7/1998 8:13:00 AM
From: Jeff Lins	Respond to of 1773

Kai, I agree that sales are quite good at the moment, and that our quarter may be better than expected. But ff7 is probably right at expected sales, DD a hair below, and Commandos much better than expected. Still, there will be big royalty expenses (game R&D), which will certainly hold us back. GTIS had 2 or 3 big games in the top 10 a good deal of the quarter. And all they could squeeze was 3 cents a share. The reason was mostly royalty expense, as well as high marketing costs. I think we will see the same thing. BTW, E3 was certainly a huge expense. Would guess that shows up as a selling expense this quarter? I am also curious as to where I can get my hands on annual report... Regarding Opticom, I don't how it will be accounted for, but US GAAP would value a 15% equity stake by the fair value method, and since it is clearly not a short term investment, it would be considered available-for-sale (as opposed to a trading security). As such, the unrealized gains would be recognized as a separate component of stockholders equity. So it would be recorded on Bal sheet, not Income statement, as income wouldn't be realized until sold (or dividend declared by opticom). Jeff

To: hl who wrote (1193)	8/7/1998 11:35:00 AM
From: Bleeker	Read Replies (1) \| Respond to of 1773

--It's interesting to note that Goldman has a -51 cents estimate and +200,000 units of Commandos sold so it's not as if the analysts are not aware of above expectation sales. GTIS has had a broader selection of and higher ranked games in Q1 and look at their paltry earnings. Also, EIDOS has offered a number of rebates on the US copies of FFVII which should trim reserves in addition to some of the returns from the technical snafu. Don't forget to factor in the rebates. Similar rebates trimmed EPS at Broderbund in a material way. --I requested a copy of the annual report from EIDOS. I had it expedited the day after it was released. As I posted earlier, OPTICOM had an original cost of $18.4 million and as of May 26, EIDSY's stake had appreciated by more than 100 percent and was close to $40 million. Of course, EIDOS also has $50 million in debt. I'll have access to the report Sunday/Monday. But you can look at my post which drew from the annual report a while ago. Here is the link: www3.techstocks.com Bleeker