Children's videogame publisher NewKidCo International Inc. has announced that the company's first quarter 2002 results were in line with its budget. The net loss of $1.8 million versus net income of $.3 million for the same period last year was a result of increased selling and marketing expenditures as part of the overall plan by NewKidCo to support its broad product rollout for the year (selling and marketing costs have been expensed as incurred). Revenues were $1.8 million, down from $3.6 million for the same period last year -- a function of revenues being primarily generated from the sale of catalogue titles. "We anticipate our revenue in the upcoming second quarter to improve over the same period last year as we ramp up for the year's exciting product line," said Arthur Levine, president and chief operating officer. "In addition we are extremely confident about the outlook for 2002, based on the response from retail and media for the company's new games at E3." Levine also mentioned that in April 2002, NewKidCo closed an equity financing of $7.1 million, which allowed the company to invest in new product development and licensing opportunities, eliminated over 11 million warrants, and significantly reduced the corporate debt and borrowing costs.
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