We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : GTIS - Will it be a Phoenix or not ?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Scot who wrote (2289)11/15/1999 6:25:00 PM
From: Scot  Read Replies (1) of 2319
Wow, now I really can't say I'm disappointed. Just look at the increase in Selling and Distribution. I wonder what the ASP of Driver is when you consider those costs?

-$0.77 a share. No wonder they waited to announce earnings with the "investment."

GT Interactive Reports Second Quarter Fiscal 2000 Results
$135 Million Infogrames Investment Strengthens Competitive Position; Enhances Ability To Implement Growth Strategy
NEW YORK--(BUSINESS WIRE)--Nov. 15, 1999-- GT Interactive Software Corp. (Nasdaq: GTIS - news), a leading entertainment software publisher, today announced operating results for the second fiscal quarter ended September 30, 1999.

Net revenues in the second fiscal quarter were $91.4 million, compared to $116.2 million for the same period last year. Sales were driven by strong performances of new internally developed titles including Driver for the Playstation, which has sold more than 2.3 million copies worldwide to date, and Deer Hunter and Harley Davidson for PC. This strength was offset by a substantial decline in distribution revenues, a trend that management expects to continue, as they reposition this portion of the business and focus on the company's core publishing business.

The net loss for the second fiscal quarter was $57.1 million, or $0.77 per share, compared to net income of $1.4 million, or $0.02 per share, in same period last year. The net loss for the second fiscal quarter included approximately $42 million in provisions for accounts receivables and inventory valuation reserves related in large part to the downsizing of its distribution business. In addition, the net loss for the quarter includes a $7.5 million royalty earn-out paid to the company's Reflections studio based on the success of the Driver franchise, as well as approximately $6.3 million in write-offs for other miscellaneous assets.

For the six months ended September 30, 1999, revenues were $212.8 million compared to $232.5 million in the same period last year. Net loss for the six months was $61.6 million, or $0.83 per share, versus net income of $3.2 million, or $.05 per share, in the same period last year.

Separately, the company also announced today that Infogrames Entertainment, S.A. (Paris Bourse: SICOVAM 5257; Bloomberg IFG), a leading developer, publisher, and distributor of interactive entertainment, will invest approximately $135 million to acquire a controlling interest in GT Interactive. Upon signing, Infogrames made a $25 million loan to GT Interactive, repayable from the proceeds of the transaction upon closing, which is expected to take place in the next several weeks. Additionally, the bank syndicate providing the company's $125 million credit facility has agreed to amend its terms to accommodate the Infogrames transaction.

``We are very excited about this investment by Infogrames. The combination of these two companies will create a global powerhouse in the interactive entertainment software industry,' said Mr. Thomas A. Heymann, GT's chairman and chief executive officer. ``With our new capital structure and the management resources added by our new strategic partner, GT will be able to take advantage of significant growth opportunities. Management will now move forward with a renewed focus toward leveraging core assets and our strategic plan to growing revenues and reaching profitability. The investment by Infogrames creates significant synergies in distribution and marketing both domestically and abroad.'

``As we strive to position the company for growth and profitability, we will continue to rationalize operations to maximize the benefits of our relationship with Infogrames. This will likely result in additional restructuring charges being taken upon the closing of the transaction,' he concluded.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext