AKLM earnings report
BSNS WIRE) Acclaim Entertainment Reports Second Quarter 1999 Profit
Acclaim Entertainment Reports Second Quarter 1999 Profit
Business Editors
GLEN COVE, N.Y.--(BUSINESS WIRE)--April 6, 1999--
Company Reports Diluted Earnings Per Share of $0.21; Revenues
Increase 96% over FY 98 Second Quarter Due To Successful Franchise
Titles And Strong Internal Development
Acclaim Entertainment, Inc. (NASDAQ: AKLM) today reported results
for its fiscal 1999 second quarter ended February 28, 1999. Net
revenues for the 1999 second quarter were $135.7 million, an increase
of 96% compared with $69.3 million in the second quarter of the prior
year. Net earnings for the 1999 second quarter were $14.5 million, or
diluted earnings per share of $0.21, compared with a net loss of $1.2
million for the same period in the prior year, or a diluted loss per
share of $0.02.
Gross revenues by platform for the 1999 second quarter consisted
of 79% for Nintendo 64, 9% for PlayStation, 6% for PC and the balance
in portables and all others. On a geographic basis, North American
operations generated 73% of net revenues and international operations
were 27% for the 1999 second quarter.
Revenue for the 1999 second quarter was impacted by a strong
holiday selling season highlighted by demand for two key Acclaim
products, Turok 2: Seeds of Evil and South Park for the Nintendo 64.
Both titles reached top 10 status exceeding sales expectations. These
products were complemented by the release of Extreme-G 2 and Turok 2
on the PC, NBA Jam '99 and Turok 2 on the GameBoy Color, additional
quantities of NBA Jam '99 for the N64, and re-orders from the
company's catalog. Acclaim Publishing's South Park strategy guide also
contributed to the profitability of the second fiscal quarter.
"We are very pleased with the results of the second fiscal quarter
of 1999," said Gregory Fischbach, co-chairman and CEO of Acclaim. "The
company's continued focus on strengthening internal development led to
the creation of both Turok 2 and South Park, which were largely
responsible for our profitability in the quarter. We look forward to
continuing to capitalize on our internal development strength over the
remainder of fiscal 1999 with the release of several new and returning
brands including All-Star Baseball 2000, WWF Attitude, Re-Volt, NFL
Quarterback Club 2000, and Shadow Man."
New Titles for Third Quarter
Acclaim's third quarter will be highlighted by the planned release
of All-Star Baseball 2000 on April 7th for the N64, Machines for the
PC in mid-April, and WWF Attitude for PlayStation in late May.
All-Star Baseball 2000, endorsed by New York Yankee shortstop, Derek
Jeter, is the sequel to last year's hit game referred to by many
enthusiast magazines and websites as the "best baseball game of the
year" for any system. Machines is a 3D real-time strategy game that
has been praised by the press for its innovative features and detailed
graphics. WWF Attitude is the sequel to WWF: War Zone which ranked as
the 3rd best selling PlayStation title for 1998. Other releases
planned for the quarter include: Bust-A-Move'99 for the N64 and
PlayStation and All Star Baseball 2000, WWF Attitude, Bust-A-Move 4,
Maya the Bee, and Drop Zone for the GameBoy Color.
Acclaim Studios Launch Franchise Titles in Fourth Quarter
Acclaim's 4th quarter will feature the release of titles
capitalizing on the company's brand strategy with products developed
by Acclaim Studios. Key titles announced for this period include: NFL
Quarterback Club 2000 for N64; ReVolt for the PC, N64 and PlayStation,
South Park for PlayStation, WWF Attitude for N64, and Shadow Man for
the PC, PlayStation and N64. ReVolt, an arcade-style RC racing game,
features a realistic physics engine and advanced artificial
intelligence for each vehicle. Shadow Man is a voodoo-inspired 3rd
person action/adventure game featuring groundbreaking technology and a
rich storyline. Based on an Acclaim Comics character, Shadow Man has
been in development for over two years and will be supported by a
major worldwide marketing campaign at its late-August launch.
E3 and Beyond
To capitalize on the continued worldwide success of the Sony
PlayStation, Acclaim will increase its support by expanding the number
of titles published for the system including Shadow Man, ReVolt and
South Park. Acclaim has also announced collaboration with Microsoft
Corporation on the development of NFL Quarterback Club 2000 for the
Sega Dreamcast console, which is expected to ship with the launch of
the hardware system this fall.
Acclaim will preview key titles for the 1999 fourth quarter and
2000 first quarter at the upcoming Electronic Entertainment Expo (E3)
trade show. The company will present a number of internally developed
new titles, as well as sequels to the company's most successful brands
including: Turok, South Park, NBA Jam, and Jeremy McGrath SuperCross.
The E3 trade show is the interactive entertainment industry's largest
and most important event of the year and will be held May 13th to May
15th in Los Angeles, CA. The balance of the company's 1999 release
schedule will be announced at the E3 trade show.
Acclaim Entertainment Background Information
Acclaim Entertainment, Inc. is a leading worldwide developer,
publisher and mass marketer of software for use with interactive
entertainment platforms including Nintendo, Sony and Sega hardware
systems, and PCs. Acclaim owns and operates four studios located in
the United States and the United Kingdom, and publishes and
distributes its software directly in North America, the United
Kingdom, Germany, France and Australia. Acclaim also distributes
entertainment software for other publishers worldwide, and publishes
comic books and software strategy guides. Acclaim's headquarters are
in Glen Cove, New York and Acclaim's common stock is publicly traded
on NASDAQ under the symbol AKLM. For more information please visit our
website at www.acclaim.net.
This press release contains forward-looking statements. There are
certain important factors that could cause results to differ
materially from those anticipated by the statements made above. Such
risks and uncertainties include, among other things, the growth of the
installed base of 32-bit and 64-bit gaming and PC systems, the timely
availability and acceptance of Acclaim's future products for such
systems, the competitive environment in the consumer software and
related industries, the management of inventories and operating
overheads and the related impact upon liquidity should any of these
risks occur. These and other risks and uncertainties are detailed from
time to time in Acclaim's reports filed with the Securities and
Exchange Commission.
*T
ACCLAIM ENTERTAINMENT, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 000s, except per share data)
(Unaudited)
February 28, August 31,
1999 1998
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 88,282 $ 47,273
Accounts receivable - net 23,595 39,177
Inventories 12,671 3,430
Prepaid expenses 11,149 16,571
--------- ---------
TOTAL CURRENT ASSETS 135,697 106,451
--------- ---------
OTHER ASSETS
Other assets 54,422 53,956
--------- ---------
TOTAL ASSETS $ 190,119 $ 160,407
--------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIENCY)
CURRENT LIABILITIES
Trade accounts payable $ 24,789 $ 24,218
Short-term borrowings -- 16
Other current liabilities 97,290 101,317
--------- ---------
TOTAL CURRENT LIABILITIES 122,079 125,551
--------- ---------
LONG-TERM LIABILITIES
Other long-term liabilities 54,618 56,629
--------- ---------
TOTAL LIABILITIES 176,697 182,180
--------- ---------
STOCKHOLDERS' EQUITY (DEFICIENCY)
Common stock 1,090 1,053
Additional paid in capital 200,481 189,645
Accumulated deficit (184,373) (209,180)
Treasury stock (3,262) (3,103)
Foreign currency translation adjustment (514) (188)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) 13,422 (21,773)
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIENCY) $ 190,119 $ 160,407
--------- ---------
ACCLAIM ENTERTAINMENT, INC
AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS
(in 000s, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 28,
1999 1998 1999 1998
---- ---- ---- ----
NET REVENUES $135,656 $69,343 $240,487 $161,620
COST OF REVENUES 68,230 33,227 118,730 77,228
------ ------ ------- ------
GROSS PROFIT 67,426 36,116 121,757 84,392
------ ------ ------- ------
OPERATING EXPENSES
Marketing and sales 21,368 14,162 38,887 31,260
General and administrative 18,254 12,672 33,184 26,753
Research and development 11,506 9,273 22,734 17,617
------ ----- ------ ------
TOTAL OPERATING EXPENSES 51,128 36,107 94,805 75,630
------ ------ ------ ------
EARNINGS FROM OPERATIONS 16,298 9 26,952 8,762
------ - ------ -----
OTHER (EXPENSE) (1,216) (1,229) (1,070) (1,865)
------- ------- ------- -------
EARNINGS (LOSS) BEFORE
INCOME TAXES 15,082 (1,220) 25,882 6,897
PROVISION FOR INCOME TAXES 562 15 1,075 121
--- -- ----- ---
NET EARNINGS (LOSS) BEFORE
MINORITY INTEREST 14,520 (1,235) 24,807 6,776
------ ------- ------ -----
MINORITY INTEREST -- (5) -- (10)
----- --- ----- ----
NET EARNINGS (LOSS) $14,520 $(1,230) $24,807 $6,786
------- -------- ------- ------
BASIC EARNINGS (LOSS)
PER SHARE $0.27 $(0.02) $0.46 $0.13
DILUTED EARNINGS (LOSS)
PER SHARE $0.21 $(0.02) $0.38 $0.13
*T
--30--rg/ny*
CONTACT: Bob Picunko
Sandy DeGennaro
Acclaim Entertainment
(516) 656-5000
KEYWORD: NEW YORK
INDUSTRY KEYWORD: ENTERTAINMENT INTERACTIVE/MULTIMEDIA/INTERNET
COMED EARNINGS
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