Uproar Announces First Quarter Results
Tuesday May 11, 11:20 am Eastern Time
Company Press Release
SOURCE: Uproar Ltd.
LONDON, May 11 /PRNewswire/ -- Uproar Ltd (RIC: EPUB.VI), a leading producer of
online game shows and entertainment, today reported financial results for the first quarter of
1999.
For the three-month period ended 31 March 1999, revenue was $963,000. For the same period, the Company reported a
loss from operations of $2,968,000, excluding a one-time charge relating to an agreement with Pearson Television, the details
of which are below. This compares to revenue of $135,000 with a reported loss of $660,000 for the first quarter of 1998.
The Company has adopted a policy of maintaining and reporting its financial data in accordance with US GAAP. The
Company believes this change facilitates comparisons between Uproar and other Internet-related companies, most of which
report in US GAAP.
''In an effort to strengthen our long-term position in the online entertainment sector, Uproar took a number of strategic steps
during the first quarter,'' said Michael Simon, Chief Executive Officer.
In Q1 1999, Uproar completed a deal with Pearson Television which provides the Company with the exclusive online
English-language rights to some of Pearson's game-show formats, in-show promotion of Uproar.com, and television advertising
slots for Uproar. In exchange, Pearson Television obtained a 10% equity stake in Uproar Ltd. and Greg Dyke, Pearson
Television chief executive, joined Uproar's board of directors. Uproar also expanded its United States sales force from seven
to 14 people, and recruited Paul DeBraccio to the position of senior vice president of sales and commerce. In Europe, the
Company launched its Bingo Blitz game in 11 languages.
The company also announced today that it has made an application for its shares to be listed on Easdaq.
Under the agreement between Uproar and Pearson Television, the Company allocated 50,000 shares of Uproar's stock to
Pearson. At the time the shares were allocated, the fair market value of those shares was $24.7 million. The Company
estimates the value of the promotion that it will receive from Pearson Television under the agreement will be $8 million over the
life of the agreement. The Company took a one-time, ''asset impairment'' charge of $16.7 million, the difference between the
two amounts.
Consumers and the industry continued to show strong interest in Uproar's entertainment products. During the first quarter,
Uproar's worldwide registered user base grew from 1.17 million to 1.97 million. Uproar.com won Coolsiteoftheday.com's
''Cool Site of Year award'' in the games category during the first quarter.
Uproar Ltd. creates and distributes online entertainment and game shows which can be accessed at WWW.UPROAR.COM,
WWW.UPROAR.CO.UK, WWW.UPROAR.DE, WWW.AMUSED.COM and WWW.GAMESCENE.COM.
Uproar Ltd. (RIC: EPUB.VI)
Uproar Ltd
Consolidated Profit and Loss
(unaudited)
Prepared in accordance with US GAAP
All figures in United States dollars
Three months ended March 31
1999 1998
Revenue $963,000 $135,000
Cost of Sales $(296,000) $(103,000)
Gross Profit $667,000 $32,000
Operating Expenses
Sales and Marketing $2,555,000 $307,000
Product Development $311,000 $175,000
General and Administrative $769,000 $210,000
Loss from Operations $(2,968,000) $(660,000)
Asset impairment $(16,674,000) $--
Interest income, net $83,000 $30,000
Exchange gain / (loss) $2,000 $12,000
Loss before taxation $(19,557,000) $(618,000)
Provision for Income taxes $(1,000) $(2,000)
Net Loss $(19,558,000) $(620,000)
SOURCE: Uproar Ltd. |
