Electronic Arts announced its results for the first fiscal quarter ended June 30, 2001. Consolidated net revenues were US$182 million compared to $154.8 million for the same quarter last year, an increase of 18%. On an as-reported basis, consolidated net loss and diluted loss per share were $45.3 million and $0.33, respectively, compared to a net loss and diluted loss per share of 42.3 million and $0.33, respectively, in the same period of the prior year.

Activision, Inc. has announced record financial results for the first fiscal quarter ended June 30, 2001. Net revenues were US$110.6 million, 31% higher than last year’s net revenues of $84.6 million. Net income for the first fiscal quarter was $29,000 or a nominal amount per share, compared with a net loss of $5.2 million, or $0.21 loss per share, reported for the same period last year. The company also announced an increase in its fiscal year 2002 earnings per share forecast from $0.80 to $0.87.

Entertainment Rights plc has announced the creation of their home video company Right Entertainment. Along with its recent US$22.5 million acquisition of Link, Right will enable Entertainment Rights to exploit its properties around the globe in all mediums. In turn, Entertainment Rights has signed an exclusive deal with Universal Pictures Video UK to release its properties on video.

Aardman Animation, Cartoon Network, Nelvana and the National Film and Television School, U.K. film and animation school, have formed the Animation Committee to discover and support European animation talent. The organization will review toon shorts quarterly. The best of those shorts will be aired on Britshorts.com. Some of those shorts will be selected for further development in film and television.

Evans & Sutherland Computer Corp. has released its financial results for the second quarter ended June 29, 2001. Total sales for the quarter were US$48.1 million compared to $25.6 million for the second quarter of 2000. Net loss for the quarter was $5.1 million, or $.50 per share, compared to a net loss of $52.3 million, or $5.58 per share, in the prior year. For the six months ended June 29, 2001, sales totaled $87.7 million compared to $71.5 million for the same six months of 2000.

Santa Monica-based Zeros & Ones, a media holding company with digital convergence operations in technology, content and production, has announced that it has reached a final settlement agreement with Steve Schklair, former director and officer. The company filed an action against him in Los Angeles Superior Court in October 2000. Schklair was terminated earlier that same year by act of the board of directors.

As the mergers continue, Disney answers the AOL Time Warner and Viacom call and grows for the first time since the 1996 Capital Cities/ABC merger. On Saturday, July 21, 2001, the LA TIMES’ Sallie Hofmeister reported that the Walt Disney Co. will buy Fox Family for $3.3 billion plus assume $2.1 billion of the troubled venture’s debt. Long in the rumor mill, this new acquisition is supposed to be final and announced within a few days according to Ms. Hofmeister’s sources. Obviously the true value for Disney in this deal is obtaining the fifty international Fox Family channels.

Acclaim Entertainment, Inc. has announced profitable results of US$0.2 million in earnings before an extraordinary gain on net revenues of $38.6 million for its third fiscal quarter ended June 2, 2001. These profits were achieved before the gain of $7.1 million, or $0.12 per diluted share, from the early retirement of $13.9 million principal amount of the 10% convertible subordinated notes.

Tele Munchen Group (TMG) has made an offer to buy out CEO and co-founder Thomas Haffa's 43% share of EM.TV. The offer is reported at DM250 million (US$109 million). However, media giant Kirch Group reportedly has a first-look option for Haffa's stake after it bailed out the troubled company by purchasing a 25% stake this past spring. Former EM.TV exec Nickolaus Becker, who pushed a TMG bail out over Kirch, is shepherding TMG's proposal for Haffa's share. Currently, EM.TV holds a 45% stake in TMG, but it has to sell it in order to get regulatory approval for its alliance with Kirch.

San Francisco-based Western Images is restructuring to focus solely on visual effects, CGI, design direction and creative editorial services. Facility services, which include the linear edit suite, Henry, telecine and video service bureau, will be retired. In addition, the company will expand its efforts in long-form broadcast and feature film effects. As a result of the restructuring, five people were laid off. Four were related to fax work and the fifth was executive producer Ken Solomon. "Kenny (Solomon) worked very hard and was very good.