Infogrames Losses Shrink, Revenues Expand
Infogrames, Inc., has announced results for its fiscal 2001 third quarter and nine months ending March 31, 2001. Third quarter revenues increased to $70.8 million, compared to $63.6 million for the same period in 2000. Publishing revenues increased to $47.0 million from $32.6 million in the prior year period, while distribution revenues decreased to $23.8 million from $31.0 million in the prior year period. The third quarter net loss decreased to $21.4 million, or $0.31 per share, compared to a net loss of $168.7 million, or $8.17 per share for the same period in 2000. For the third quarter of fiscal 2001, EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $14.4 million, compared to a loss of $126.1 million for the comparable period in 2000. Adjusted EBITDA (excluding one-time events) for the third quarter would have been a loss of $12.2 million, or $0.18 per share, for the 2001 period, compared to a loss of $46.8 million, or $2.27 per share, for the same period in 2000. For the nine months ended March 31, 2001, revenues were $237.8 million, compared to $264.7 million for the same period in 2000. Publishing revenues for the nine months ended March 31, 2001 increased to $177.9 million, compared to $145.8 million in 2000, and distribution revenues were $59.9 million in 2001 compared to $118.9 million for the same period in 2000. Sales numbers for the first nine months of fiscal 2001 reflect a fundamental shift away from the less profitable third-party distribution business towards the more profitable game title publication business. Net loss for the first nine months decreased to $37.7 million, or $0.71 per share, compared to a net loss of $342.3 million, or $20.05 per share, for the same period in 2000. For the first nine months, EBITDA was a loss of $14.5 million, compared to a loss of $263.4 million for the comparable period in 2000. Adjusted EBITDA for the first nine months would have been a loss of $5.7 million, or $0.11 per share, for the 2001 period, compared to a loss of $144.6 million, or $8.47 per share, for the same period in 2000. The companys financial results include the effect of its merger with Infogrames North America, which closed on October 2, 2000. The January 2001 acquisition of Hasbro Interactive (now "Infogrames Interactive") by Infogrames Entertainment SA (IESA) directly impacted the companys publishing business. Through an agreement with IESA, the company will be publishing and distributing all games for Infogrames Interactive in North America, which should substantially increase ongoing publishing revenues. The company also recorded a restructuring charge of $2.1 million during the third quarter to account for the relocation and combination of the companys San Jose publishing label with the companys Los Angeles publishing label. Bruno Bonnell, chairman and CEO of Infogrames, Inc., stated, "We are pleased with our operating performance for the quarter. From a year over year perspective, we have been able to substantially reduce operating expenses, without sacrificing our sales pipeline. However, the biggest development during the quarter is the Hasbro Interactive acquisition by Infogrames Entertainment SA, which is very beneficial for Infogrames, Inc. in more ways than one. Financially, we expect this to generate in excess of $100 million in additional publishing revenue on a yearly basis, while contributing positively to the company's bottom line. The company plans to release several titles later this year, including: LE MANS 24 HOURS, TEST DRIVE OFF-ROAD - WIDE OPEN, and MOTOR MAYHEM for the Playstation 2; ALONE IN THE DARK: THE NEW NIGHTMARE and SHEEP RAIDER for the Playstation; and MONOPOLY CITY and FREDDIE FISH AND THE CASE OF THE CREATURE OF CORAL COVE for the PC. The company has also signed licensing deals to develop titles based on the hit television show SURVIVOR, the PEANUTS comic strip and LA FEMME NIKITA.