| To: Scot who wrote (2289) | 11/15/1999 6:25:00 PM | | From: Scot | | | |
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. |
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| To: Scot who wrote (2290) | 11/15/1999 7:31:00 PM | | From: Burlitis | | | |
Scot,
Another sad day for this industry, last i
looked the hype machine had figured there
will be 7.4 Billion in sales this year.
Meanwhile the French are making fondu of
IPLY and GTIS. Good deal for them, bad deal
for all the talent they are buying because
they don't know S**T from Shinola about making
good games.
Weird, we both own French game companys, maybe
a new board is in order. The best solution would
be for a Interplay/Titus/GT Interactive/Infrogrames
merger.
Alex |
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| To: Burlitis who wrote (2291) | 11/15/1999 10:00:00 PM | | From: Mike O'Brien | | | |
So basically, individual investors in this stock just got screwed. Not only was there no takeover premium, but Infogrames paid less per share than the going market rate, valuing GTIS at less than its current market cap. In addition, all hope of profiting from a takeover is now gone, so the stock will quickly return to the level it was at before this latest round of takeover rumors. Finally, individual investors in GTIS now have essentially no voting rights in the company. The new board of directors will do what's best for Infogrames, not what's best for individual investors. Any focus that the board had on improving the stock price is gone.
For a look at what the future holds for GTIS stock, look at what happened to IPLY stock after it got taken under by Titus.
Mike
Disclaimer: this is my personal opinion, and I hold no position in this stock. |
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| To: Burlitis who wrote (2291) | 11/15/1999 11:08:00 PM | | From: Scot | | | |
Another sad day for this industry, last i
looked the hype machine had figured there
will be 7.4 Billion in sales this year.
Meanwhile the French are making fondu of
IPLY and GTIS. Good deal for them, bad deal
for all the talent they are buying because
they don't know S**T from Shinola about making
good games.
Weird, we both own French game companys, maybe
a new board is in order. The best solution would
be for a Interplay/Titus/GT Interactive/Infrogrames
merger.
Yeah, and don't forget Havas. I suppose this could be described as ironic...American exportation of corrupt culture through violent videogames is now controlled by the French! What will the future bring? Forget about NASCAR games.....we'll all be road rallying in Peugeots; or perhaps Duke Nukem 5: The Foreign Legion; Deer Hunter will give way to Frog Trapper: 3D; and instead of Unreal Tournament.....we'll have games about striking sanitation workers. Hey, at least the talent will get lots of vacation.
Sales will come...one day. But there are too many problems with hardware and games are too damn expensive. I'm shocked there are enough people willing to pony up $50 as it is.....
That's another discussion. Oh well. C'est la vie!
-Scot |
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| To: Mike O'Brien who wrote (2292) | 11/16/1999 8:04:00 AM | | From: Burlitis | | | |
Mike,
Well said, not only will GTIS current shareholders
get screwed, Infrogrames will now be able to count
all of GT Interactive's revenue on THEIR balance
sheet. Their stock will climb enabling them to continue
on their buying spree.
I'm familar with the IPLY deal(still stuck with a few shares)what's happening here is a carbon copy,expect
more losses,a figurehead CEO, and eventually full
control by both Titus(IPLY) and Infrogrames(GTIS).
Hopefully both companys will have the same problems
Havas is having with Sierra.
Alex |
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| To: Scot who wrote (2293) | 11/16/1999 8:17:00 AM | | From: Burlitis | | | |
Scot,
Nice post, a good percentage of people aren't
paying for the software. Dreamcast and N64 are
the only exceptions at this point. Why pay 50 bucks
when you can get a copy for 5 bucks. I'll be in
Hawaii over Christmas and New Year, i can hit
the swapmeets. etc, and pick up all the Hong Kong
copys i want. Need anything?,LOL
Another day another way,
Alex |
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| To: Scot who wrote (2293) | 11/16/1999 9:26:00 AM | | From: John Finley | | | |
>>American exportation of corrupt culture through violent videogames is now controlled by the French! <<
I got a much needed laugh from your post this morning! Thanks!
I'm not sure that Deer Hunter will give way to Frog Trapper, though <g>.
JF |
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| To: Burlitis who wrote (2295) | 11/16/1999 1:01:00 PM | | From: Professor Dotcomm | | | |
Over half the total units shipped last year in the video games business were value-priced i.e. republished games and previously played games. True the dollar value was only 27% but it still accounted for some $1.3 billion in revenues.
Rather than going to Hawaii, you can buy previously played or republished on Amazon. I believe the portal is that of CDPlus. Prices vary from as low as $5 to as much as $25. |
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| To: Professor Dotcomm who wrote (2297) | 11/16/1999 2:11:00 PM | | From: Burlitis | | | |
PD,
I don't pirate games,as far as buying value and republished
games,that's not the point. The point is i can buy PSX
new releases before they are even on store shelfs for 5
bucks. I can currently download games that aren't even due
to be released for a couple of weeks, i don't do that
either.
I don't need to go to Hawaii to buy any pirated games either,there's many internet sites that offer all the
games, mod chips, you could ever want. I'm going to
Hawaii for a family vacation in the condo, and i won't
be playing games:-)
Alex |
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