KIDO Looks good IMO.
Kideo Productions, Inc. Announces Second Quarter Profit and Launches Internet E-commerce Site
NEW YORK--(BUSINESS WIRE)--March 17, 1999--
Earnings Are Accompanied By 424% Increase In Six-Month Revenues,
And 298% Increase In Second Quarter Revenues
Kideo Productions, Inc. (OTC:KIDO;KIDOW), the nation's leading marketer of digitally personalized licensed children's products, today announced results for the second quarter and the six months ended January 31, 1999. The company also announced the upcoming launch of the Kideo.com Internet e-commerce site, which will allow consumers to instantly order the company's products online using digital photographs, and which will also feature an international network of Kideo.com Internet sales affiliates. Kideo products include an award-winning line of personalized Barney video and publishing products, as well as photo-personalized Disney books.
Sales for the second quarter ended January 31, 1999 increased 298% to $1,957,000 compared to $492,000 for the same period in 1998. The Company reported an operating profit of $163,000 for the current quarter as compared to an operating loss in the prior quarter of $356,000 and a net profit of $10,000 in the current quarter as compared to a prior quarter net loss of $404,000.
The increase in sales was primarily attributed to the success of the Company's lines of personalized products featuring licensed characters, including the Company's award-winning, "My Party with Barney" personalized home video.
Sales for the six-month period ended January 31, 1999 rose 424% to $3,105,000 compared to $593,000 reported for the same period in 1998. The Company reported an operating profit of $41,000 in the six-month period as compared to a prior period operating loss of $1,217,000. The net loss for the six months ended January 31, 1999 decreased 79% to $268,000 compared to the prior year net loss of $1,269,000.
Richard L. Bulman, the company's President and CEO, commented on today's announcements: "We're very pleased with having achieved profitability while at the same time averaging over 300% year-to-year quarterly revenue growth over the past three quarters. With the continued strength of our licensed lines of products, the introduction of exciting new personalized product lines in '99, and the addition of our major e-commerce initiatives to our sales programs, we are confident that these trends can be sustained."
Commenting on the company's Kideo.com Internet e-commerce initiatives, Mr. Bulman added, "As a digital manufacturer, Kideo is taking full advantage of the features of e-commerce. Kideo customers have traditionally placed orders by mailing in to Kideo an order form that included personalization data such as a child's name and photograph. Kideo.com's enhanced e-commerce capabilities, which will be launched in Spring '99, will enable Kideo.com customers to instantly e-mail orders with an attached digital photograph. This process accelerates the ordering and fulfillment processes, and reduces our manufacturing costs. With the combination of this streamlined ordering process and our international network of Internet sales affiliates, we expect Internet e-commerce to be a significant source of additional revenue growth this year."
Kideo has been awarded the "Kid's First Award" for excellence in children's entertainment for a variety of the Company's products, most recently for its "My Party with Barney" personalized home video. "My Party with Barney" was also voted the "Barney Product of the Year" for 1998 in a vote by Barney licensees. Kideo products are available through major toy, gift, and general merchandise catalogs, selected retail sites on the world wide web, and through direct response television, radio, print advertising, direct mail, and The Kideo Catalog. Kideo products can also be ordered by calling the toll-free Kideo order line at 1-888-88-KIDEO, or visit the Kideo website at www.kideo.com.
This release is covered under the "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain information includes forward looking statements that involve a number of known and unknown risks and uncertainties. The Company's actual results, performance or achievements may differ materially from any future results, performance, or achievements expressed or implied in any forward looking statement.
KIDEO PRODUCTIONS, INC,
SUMMARY FINANCIAL INFORMATION
($000's except share and per share amounts)
Six Months Six Months Three Months Three Months
Ended Ended Ended Ended
January 31, January 31, January 31, January 31,
1999 1998 1999 1998
Sales $ 3,105 $ 593 $ 1,957 $ 492
Cost of sales 1,298 549 769 311
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Gross profit/(loss) 1,807 44 1,188 181
Selling expenses 1,073 607 647 226
General &
administrative
expenses 693 654 378 311
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Profit (loss)
from operations 41 (1,217) 163 (356)
-------- ---------- ---------- ----------
Other (expense) net (309) (52) (153) (48)
Net income (loss) $ (268) $ (1,269) $ 10 $ (404)
======== ========== ========== ==========
======== ========== ========== ==========
Basic and diluted
income (loss)
per share $ (0.07) $ (0.36) $ 0.00 $ (0.11)
======== ========== ========== ==========
======== ========== ========== ==========
Weighted
average shares 3,775,886 3,481,829 3,775,886 3,637,264
CONDENSED CONSOLIDATED BALANCE SHEETS
January 31, 1999 July 31, 1998
---------------- -------------
ASSETS
Current Assets
Cash & equivalents $ 100 $ 82
Accounts receivable 110 92
Inventories 63 53
Prepaid expenses 135 169
--------------- ----------
--------------- ----------
Total current assets 408 396
Noncurrent assets 620 675
--------------- ----------
=============== ==========
Total assets $ 1,028 $ 1,071
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=============== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities $ 2,515 $ 2,161
Convertible notes payable 123 248
Capitalized leases
long term 6 10
--------------- ----------
--------------- ----------
Total liabilities 2,644 2,419
Shareholders' (deficiency)
equity (1,616) (1,348)
--------------- ----------
=============== ==========
Total liabilities and
shareholders' equity $ 1,028 $ 1,071
=============== ==========
=============== ==========
CONTACT: Kideo Productions, New York
Richard L. Bulman, President & CEO
ph: 212/505-6605
fax: 212/505-2142
e-mail: rbulman@kideo.com
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