Sanctuary Woods Posts Fiscal 1997 Results|
Tuesday, July 01, 1997 08:52 AM ET
SAN MATEO, Calif. -- Sanctuary Woods Multimedia Corporation (OTC Bulletin Board: SWMC) today reported a net loss of $3,677,011 or $3.30 per share on sales of $4,749,351 for the fiscal year ended March 31, 1997 as compared to a net loss of $18,698,441 or $22.16 per share for the year ended December 31, 1995 on revenues of $10,981,097.
"The Company's fiscal 1997 results are not comparable to fiscal 1995 results because in fiscal 1997 the Company discontinued the distribution of entertainment products. In addition, in fiscal 1995, the Company wrote down numerous assets and took extraordinarily high reserves to account for product returns and price markdowns related mostly to its discontinued entertainment business," said Charlotte Walker, President. In fiscal 1997, the Company re-structured its balance sheet and reorganized operations into the US including the sale of its studio in Victoria, British Columbia and the closure of its Toronto office. Expenses related to the re-structuring and reorganization were approximately $1.1 million. The Company also incurred $329,000 in bad debt losses partly resulting from bankruptcy filings by two of the industry's major distributors.
"Market conditions remain very challenging, however we believe that our continued focus on the Head Coach(TM) and Franklin(TM) line of educational products and our efforts to open new sales channels, including the internet, will position us for growth in 1997-1998," added Ms. Walker.
About Sanctuary Woods
Founded in 1988, San Mateo-based Sanctuary Woods Multimedia is the innovative developer of the Head Coach(TM) line of sports-based educational software titles derived from unique licensing agreements with NFL(TM) Properties, the National Football League Players Incorporated and Major League Baseball Properties. Current titles include Major League Math(TM), Major League Reading(TM), NFL(TM) Math and NFL(TM) Reading. Major League Math Second Edition was recently awarded Newsweek Magazine's "Editor's Choice" award. The company also manufacturers the popular Franklin series which includes Franklin Learns Math, Franklin's Reading World and Franklin's Activity Center. All are based on the popular Franklin storybook character. Sanctuary Woods can be reached at 800-943-3664 or visit the company's Web site located at ah-hah.com.
NOTE: Sanctuary Woods is a registered trademark and Head Coach is a trademark of Sanctuary Woods Multimedia. Franklin is a trademark of Kids Can Press Ltd. Major League Math and Major League Reading are trademarks of Major League Baseball Properties, Inc. NFL is a trademark of National Football League Properties.
/CONTACT: analysts, Charlotte Walker of Sanctuary Woods, 415-286-6000, or firstname.lastname@example.org; or media, Lauren Finkelman, 800-287-2279, or email@example.com, or Melissa Rabin, 800-287-2279, or firstname.lastname@example.org, both of S&S Public Relations, Inc., for Sanctuary Woods/