FYI:
Tuesday April 6, 4:09 pm Eastern Time
Company Press Release
Acclaim Entertainment Reports Second
Quarter 1999 Profit
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
GLEN COVE, N.Y.--(BUSINESS WIRE)--April 6, 1999-- Acclaim Entertainment, Inc. (NASDAQ: AKLM - news)
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.
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
Contact:
Bob Picunko
Sandy DeGennaro
Acclaim Entertainment
(516) 656-5000
More Quotes and News:
Acclaim Entertainment Inc (Nasdaq:AKLM - news)
Related News Categories: computers, earnings, entertainment, internet, software
Help
Copyright © 1999 Business Wire. All rights reserved. All the news releases provided by Business Wire are copyrighted. Any forms of
copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these
materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving ina public database, redistributing via a
computer network or in a printed form.
See our Important Disclaimers and Legal Information.
Questions or Comments? |
