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Technology Stocks : Interactive Entertainment / Videogames

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To: vc21 who wrote (61)3/7/2000 10:52:00 PM
From: Schiz   of 81
VC, You should double check your numbers. I don't think they're accurate.

I didn't notice any numbers that match the ones you quoted
while comparing the latest earnings releases from thqi and
thdo. To make the math easier I'm just comparing the fourth
calendar quarter of last year.

Here's the numbers

cq4 '98 cq4 '99 % Changecq4 '98 cq4 '99
Revenues 111508 131697 18.11% 10271 41157 300.71%
Cost of Rev. 54811 62405 13.85% 3624 14360 296.25%
Roy. & Aband. 27026 19872 -26.47%
Prod. Dev.(r&d) 2298 3509 52.70% 7365 9341 26.83%
Sales & Mark, 9429 14629 55.15% 2981 12478 318.58%
JV Payments 0 6119 100%
G & A 3240 3912 20.74% 2256 3652 61.88%
Total Costs 96804 110446 14.09% 16226 39831 145.48%
Oper. Income 14704 21251 44.53% -5955 1326 100%

So after looking at these numbers do you still believe that
you can realistically compare the two companies? Not only
are the numbers drastically different but so are the
business models. Is that 6mm all paid to jakks? Will they
be paying more? What is the real profit margin on wwf?

Also, about thqi. Revenues up 18%, operating income up 44%
and abandonment down 26%. Seems the large increase is
operating income is in a large way due to the drop in
abandonment costs. Incidentally, if I looked at the numbers
right, capitalized software costs grew from 3mm in dec '98
to over 11mm in dec'99. That's more than a 200% increase.
Also, thq g&a costs are growing faster than revenues.

As far as mm and army men. You have tunnel vision in this
regard. You don't see the potential in hhbb? Batlle tanx
was successful on n64 and is coming to the psx soon. Heroes
is alive and well. I hope you don't group mm with crusaders
and heroes, they are completely different games. As are
many of the army men games.

It's nice to see there are still some non-believers, that
means there's still much room to go higher when more people
start opening their eyes. THDO did not just get a lucky hit
with Army Men. They are here to say. Take a look at the 2
year chart. THDO is in the process of being discovered. I
expect the impressive year over year stock appreciation to
continue for at least a few more years.

Perhaps I am confused? I guess we'll have to wait and see how things play out.

What's your point about wintergreen?

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