January 15th, 2003 (12:00am) - Today, Acclaim announced its results for the first quarter of the fiscal year 2003 which ended December 1st 2002. Along with this announcement it has confirmed its future titles for the remaining quarters of the fiscal year.
Here’s the list of what’s to come:
During the second quarter of fiscal year 2003, Acclaim intends to release 12 SKU’s:
PlayStation 2:
All-Star BaseballTM 2004 February
ATV Quad Power RacingTM 2 January
Dakar 2TM * February
VEXXTM February
GameCube:
All-Star BaseballTM 2004 February
ATV Quad Power RacingTM 2 January
Dakar 2TM * February
VEXXTM February
Xbox:
All-Star BaseballTM 2004 February
ATV Quad Power RacingTM 2 January
VEXXTM February
Game Boy Advance:
All-Star BaseballTM 2004 February
*Denotes European release only.
During the third quarter of fiscal year 2003, the Company intends upon releasing approximately 12 SKU’s:
PlayStation 2:
Speed Kings
SX Superstar
Xbox:
Burnout 2: Point of Impact
Re-Volt Live
Dakar 2*
Speed Kings
SX Superstar
GameCube:
Burnout 2: Point of Impact
Speed Kings
SX Superstar
PC:
All-Star Baseball 2004
Dakar 2*
*Denotes European release only.
During second half of calendar year 2003, the Company intends upon releasing approximately 25 SKU’s, including several titles which will be announced soon:
PlayStation 2:
AFL Live 2004*
Alias
XGRA
I Gladiator
Legends of Wrestling 3
NBA JAM 2004
Urban Freestyle Street Soccer
Xbox:
AFL Live 2004*
Alias
XGRA
I Gladiator
Legends of Wrestling 3
NBA JAM 2004
Urban Freestyle Street Soccer
GameCube:
Alias
XGRA
I Gladiator
Legends of Wrestling 3
NBA JAM 2004
Urban Freestyle Street Soccer
PC:
Alias
Urban Freestyle Street Soccer
*Denotes Australian release only
Here’s the Press Release announcing Acclaim’s results:
Acclaim Entertainment, Inc. (NASDAQ.SC: AKLM) today announced its results for the first quarter of fiscal year 2003 ended December 1, 2002. Net revenue for the first quarter of fiscal year 2003 was $63.1 million, as compared to $81.0 million or 22% lower than the first quarter of fiscal year 2002. For the first quarter of fiscal 2003, the Company reported a net loss of $13.9 million, or $0.15 per diluted share, as compared to net earnings of $17.4 million, or $0.21 per diluted share for the same period of the prior year. First Quarter Fiscal Year 2003 Operating Results
Contributing to the Company’s operating results was the strong performance of its international division, which is overseen by Rod Cousens, President and Chief Operating Officer of Acclaim International. This division’s contributions to the organization’s first quarter were due to such top-selling titles in the European market as Burnout 2: Point of Impact, Legends of Wrestling 2 and other back catalogue titles. Offsetting the positive European results was the weak performance of the Company’s titles in the North American retail market. Accordingly, based on the Company’s review of its poor domestic retail sell-through activity in the holiday season, the Company increased its allowance provisions for returns and price concessions in the first quarter of fiscal year 2003. The increased allowances are the principal reason for the decline in the Company’s gross margin to 48% during the first quarter of fiscal year 2003 from 64% in the first quarter of the fiscal year 2002.
Operating Expenses
Operating expenses for the first quarter of fiscal year 2003 were $42.5 million as compared to $31.6 million for the first quarter of fiscal year 2002. The increased expenses for the first quarter of fiscal 2003 over the comparable period for the prior year were primarily due to increased marketing and selling expenses and product development expenses.
Revised Operating Plan
The Company’s has developed a revised operating plan which targets the following key areas: reducing operating expenses in order to align them with projected revenues; maintaining the Company’s positive cash flow; an ongoing review of its product release schedule to meet market demand; and meeting the Company’s projected profitability. The Company intends to rapidly implement this plan once it has been presented to and approved by its Board of Directors, and will announce details of this plan once it has been ratified and approved.
Liquidity
As of December 1, 2002, the Company reported a cash position of $10.1 million. Based on the Company’s revised operating plan, the Company expects to generate sufficient cash flow from operations to meet its currently projected cash and operating requirements for the next twelve months. The projections assume that the Company meets its sales forecasts by successfully achieving its planned product release schedule, while simultaneously enjoying the support of its lead lender and vendors.
Gross Revenue By Platform
Gross revenue by platform during the first quarter of fiscal year 2003, consisted of 128-bit software (92%); portable cartridges (4%); 32-bit software (3%) and other (1%). On a geographic basis, North American and International operations generated 45% and 55% of gross revenue, respectively, for the first quarter of fiscal year 2003. In addition, Acclaim’s internal studios generated 30% of the Company’s gross revenue during the first quarter of fiscal 2003, of which Legends of Wrestling 2 accounted for approximately 9.5% of total revenue.
During the first quarter of fiscal year 2003, the Company released Burnout 2: Point of Impact, BMX XXX, Legends of Wrestling 2 and Mary-Kate & Ashley Sweet 16 for the PlayStation®2 computer entertainment system; BMX XXX and Legends of Wrestling 2 for the Microsoft XBOXTM, BMX XXX, Legends of Wrestling 2 and Mary-Kate & Ashley Sweet 16 for the Nintendo GameCubeTM; and Dave Mirra Freestyle BMX 3, Legends of Wrestling 2 and Mary-Kate & Ashley Sweet 16 for Game Boy Advance’. Furthermore, the continued sale of catalog products and the ongoing success of All-Star Baseball 2003, Crazy Taxi, ATV: Quad Power Racing and the Mary-Kate and Ashley brands across multiple formats, as well as distribution releases in the international markets continued to contribute to net revenues.
