Spectrum Holobyte, Inc. (SBYT) releases Q2'97 results

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Technology Stocks
Spectrum Holobyte, Inc. (SBYT) releases Q2'97 results

An SI Board Since October 1996

Posts	SubjectMarks	Bans	Symbol
833	0	0	MPRS

Emcee: David Rimer	Type: Unmoderated

Introduction Market Data Compact

Spectrum released results last night.

The results were great but the conference was abit cryptic.

Sales were up over 90% year-on-year to 27.4 USD mm.; a nice little boost on takeover valuation.
Margins were kept up at a healthy 63% allowing them to take write-offs to clean-up reserves.
SBYT announced their first quarter of profitability in two years +0.09.

The negatives:
Magic The Gathering (MTG) is stalling. The AKLM courtcase has something to do with it but... When asked about release dates, Steve Race avoided talking deadlines and invoked the lawsuit.

When do they release Masters of Orion2 (MOO2)? They seem confident that it will be coming out next quarter but they won't say when. Some feel that a release date before Thanksgiving to catch the Xmas sale is important... I'm not convinced.

In general on release dates: SBYT is moving ahead nicely on the games. The deadlines are slipping but no disasters are expected. They feel quality is more important; they are building a brand name (their three A games this year totalled >1'5 mm. copies sold, CIV2 sold 2nd most of all games in US so far this year). Finally, sophisticated buyers (i.e. those who consult newsgroups, game sites, read reviews etc... us ok!) will be more elastic on launch dates.

Not very forthcoming in their Q3 projections: So much opacity is never a good feeling but with Prop. 211 in CA. they are talking even less. They have sold over 130ku in total sales of GP2 and Civ2 this quarter. They will be bringing out a CIV2 scenario disk which should support sales. MOO2 should come out, as well as a PSX game or two.

Conclusion:
I feel that the long term prospects of the company are highly positive. They have continued funding R&D heavily (6.2 mm. a quarter) and are developing tools with 3D 1st person engines moving towards the Doom and Quake game direction. they continue to fund and make progress on the multiplayer Falcon virtual battle ground with Gilman Louie concentrating on this area. They continue to expand distribution; following the German distributor, they developed their web site to facilitate online sales of their games. Finally, they are converting their debt, building reserves, and staying in the Next Generation Platforms game with SonyPlaystation titles.

Alright. I'll stop boring you. What do you think?

Ciao, David

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Reply	Message Preview	From	Recs	Posted
833	New Microprose Thread techstocks.com Coy	Coy Lynn Gullett	-	12/12/1997
832	>>> I also feel MPRS is very undervalued at these prices with its curr	Sleeperz	-	12/11/1997
831	Hi Coy! Thanks for all the info (as usual). I was wondering if you would be int	james d. hargrave	-	12/11/1997
830	<<So IT looks like they a very solid FISCAL 1999 Linup.>> I mean fi	Coy Lynn Gullett	-	12/11/1997
829	FASA Launches Mech Site FASA Interactive has launched an official Mechcommande	Coy Lynn Gullett	-	12/11/1997
828	>>Chart for week 49 (updated on 11/12/1997) United Kingdom<< Well 4	Sleeperz	-	12/11/1997
827	Chart for week 49 (updated on 11/12/1997) United Kingdom Compiled by C	Coy Lynn Gullett	-	12/11/1997
826	Looks like we agree on the "state of the industry" Bob. I agree someb	Burlitis	-	12/10/1997
825	Very Good post Chaz, i've been playing games for 7 years and it amazes me h	Burlitis	-	12/10/1997
824	Well I can't argue with the gist of your post. However, I'll throw thi	RJC2006	-	12/10/1997
823	>>>I agree Bob, MPRS's management does suck. Not so much these da	Charles Hughes	-	12/10/1997
822	I agree Bob, MPRS's management does suck. What i'm taking into consider	Burlitis	-	12/10/1997
821	Alex, The thing is MPRS hasn't exactly lacked good titles. That's not	RJC2006	-	12/10/1997
820	Thats of course if some company doesn't packages up MPRS for a Xmas presen	Sleeperz	-	12/9/1997
819	100 % correct. Unfortunately , it means lower stock price, less shareholder con	C S Lai	-	12/9/1997
818	MPRS 1998 prospects look good, but unfortunately it's December. The stock	Bill Fischofer	-	12/9/1997
817	<<MPRS Takes Aim>>> Here's a list taken from CGW of titles t	Burlitis	-	12/9/1997
816	Dan, i have the issue, there's alot more than Falcon 4 that the Magazine Co	Burlitis	-	12/9/1997
815	The front cover of the January 1998 Computer Gaming World (not yet on shelves)	Dan Spillane	-	12/9/1997
814	>>>Well I wonder what MPRS would do when their stock falls so low that	Sleeperz	-	12/9/1997
813	Well I wonder what MPRS would do when their stock falls so low that it's ri	RJC2006	-	12/9/1997
812	That product you're mentioning is the internet update for Magic: The Gather	Marc Bell	-	12/9/1997
811	A very close source recently left microprose and prior to leaving indicated the	robert m evans	-	12/9/1997
810	Thanks for that post CR.Sure am glad i picked up more at 2 1/4 yesterday. Alex	Burlitis	-	12/9/1997
809	Wheww tragedy averted! I knew MPRS was better and merger with GTIS was bad new	Sleeperz	-	12/9/1997

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