The 3DO Company today announced its consolidated results for the fiscal year and fourth quarter ended March 31, 2002. Fourth quarter revenues were $16.3 million, 7% higher than the $15.2 million recorded in the third quarter of fiscal 2002, making the fourth quarter the company's highest revenue quarter in fiscal 2002. Fourth quarter revenues were 14% below the $19.1 million recorded in the prior year's fourth quarter. The company reported a 2002 fourth quarter net loss of $1.7 million, a reduction from the $27 million loss from the third quarter and from the $12.5 million loss in the fourth quarter of the prior year. The net loss for the third quarter of fiscal 2002 and fourth quarter of the prior year included restructuring charges of $14.1 million and $1.2 million, respectively. Net loss per share for the fourth quarter attributable to common stockholders was $0.07, an improvement from the loss per share of $0.26 in the fourth quarter of the prior year and $0.54 in the third quarter of 2002.
For the fiscal year ended March 31, 2002, revenues were $54.7 million compared to $80.0 million for the year ended March 31, 2001. This decrease was largely due to a decline in revenue from games on older platforms. Net loss per share for fiscal 2002 attributable to common stockholders was $1.01, a decrease from the loss per share of $1.85 for the prior year
Operating expenses exclusive of cost of revenues and restructuring costs declined to $11.3 million compared to $14.2 million in the third fiscal quarter and $21.6 million in the fourth quarter of the prior fiscal year, reductions of 20% and 48%, respectively, primarily as a result of the benefits associated with the cost reduction plan executed during the third quarter of fiscal 2002. Unrestricted cash and cash equivalents at the end of the fourth quarter were $5.7 million, compared to $4.9 million at the beginning of the fiscal year.
"Industry conditions have continued to be difficult, but we believe that 'less is more' and have reduced our spending in line with what we expect the market can give us," said Trip Hawkins, chairman and CEO. "We expect to operate a roughly breakeven business in fiscal 2003 and are confident in our new strategic plan to complete the platform transition in calendar 2002 and to capitalise on market growth beginning in calendar 2003."
Revenues from games for new game platforms (including the PlayStation 2 computer entertainment system and GameBoy Advance handheld game system) were $30.4 million during fiscal year 2002, an 86% increase from $16.3 million in the prior year. Revenue from certain older platforms, however, declined as the industry moved towards completing the transition to new platforms that is expected to fuel significant industry growth in calendar 2002. As part of that transition, the company announced that it has a slate of seven new games in development for the recently launched Nintendo GameCube, and three new games planned for the Microsoft Xbox. Products in the company's leading brands, including Army Men, CUBIX, and High Heat Major League Baseball are expected to be released for the GameCube during the company's fiscal year 2003.
During its fourth fiscal quarter, the company released eight products for the PlayStation®2 computer entertainment system, PC and Game Boy Advance handheld game system. Among the products released were High Heat Major League Baseball 2003 for the PlayStation 2, GameBoy Advance system and PC, Army Men: RTS for the PlayStation 2 and PC, Heroes of Might and Magic IV for PC and Might and Magic IX for PC.
"Products released in the quarter reflected our trend towards lengthening development schedules for the future," said Hawkins. "As a result we were able to better prepare the market and deliver higher quality games that resulted in good review scores, better sell-through, higher reorders, and four products listed in the Top 20 charts as the quarter ended. Going forward, we are delighted to see the recent hardware price reductions that should spur tremendous market growth and expand the market for our brands."
The company has received a commitment letter from GE Capital Commercial Services for a factoring facility up to $15.0 Million with a two-year term. While there is no assurance that the commitment will be consummated, management anticipates final loan documents will be completed in the next few weeks.
The company has scheduled a teleconference with the financial community and shareholders for Wednesday, May 15, 2002 at 5:00 (EDT), to discuss fiscal year results and the outlook for next fiscal year. To listen, the domestic dial-in telephone number is 877-282-2316 or 703-871-3029. The teleconference will also be carried live via the Internet at www.3do.com.