COMPANY PRESS RELEASE: The 3DO Company has announced its consolidated results for the fiscal third quarter ended December 31, 2001.
Revenues were $15.2 million, in line with expectations and higher than the first two fiscal quarters, although lower than the prior year due to a decline in revenue from games on older platforms. Net loss per share attributable to common stockholders was $0.54, an increase from the loss per share of $0.48 in the same quarter of the prior year. During the quarter, the company recorded $14.1 million in one-time restructuring charges, resulting in a total proforma net loss attributable to common stockholders of $28.2 million. Excluding the restructuring charge, the net loss per share attributable to common stockholders decreased to $0.27. Overhead expenses exclusive of cost of revenues and the restructuring declined to $14.2 million compared to $26.0 million in the prior year quarter. Unrestricted cash and cash equivalents at the end of the third quarter were $13.7 million, increasing from $4.9 million at the beginning of the fiscal year.
Revenues from games for new game platforms (including the PlayStation2 computer entertainment system and GameBoy Advance handheld game system) were $8.3 million in the third quarter, a 236% increase from $2.5 million in the prior year. Revenue from certain older platforms, however, declined as the industry moved towards completing the transition to new platforms that is expected to fuel significant industry growth in calendar 2002. As part of that transition, the company officially announced that it has a slate of eight new games in development for the recently-launched Nintendo GameCube, most of which will be released in the Company’s upcoming fiscal year. Products in the Company’s leading brands, including Army Men, CUBIX- Robots for Everyone, and Jonny Moseley Mad Trix, are expected to be released on the GameCube during the coming year.
The hardware base of new platforms grew substantially over the holidays, and will account for the vast majority of our product releases and revenues going forward, said Trip Hawkins, CEO. With lower spending levels in place, a market that is growing dramatically, and a strong slate of new games in solid brands, we expect significantly improved results in our next fiscal year. We are especially excited about the GameCube because of our strong brands for kids. In many respects, our brand mix struggled during the platform transition but market growth this year should expand the audience for both kids and casual-gamer adults where we have previously enjoyed notable success. We understand that commercial success is a function of developing top quality products based on key brands that will appeal to the principal demographic audience for particular platforms, and we have adjusted our plans for the coming year accordingly.