SAN JOSE, Calif., May 13 /PRNewswire-FirstCall/ --
BAM! Entertainment(R) (Nasdaq: BFUN), a developer and publisher of interactive
entertainment software, today reported results for its fiscal third quarter
ended March 31, 2003.
The company reported net revenues for the fiscal third quarter of $2.9
million, a decrease of 59% from net revenues of $7.0 million for the same
quarter of the prior fiscal year.
The operating loss and net loss for the quarter was $5.1 million, or 35
cents per share. In the same quarter of the prior year, the company sustained
an operating loss of $5.9 million and a net loss of $6.2 million, equivalent
to 43 cents per share.
During the quarter ended March 31, 2003, the company released three new
products as compared to six products in the same quarter of the prior fiscal
year. Products released in the quarter ended March 31, 2003 were:
Samurai Jack(TM): The Amulet of Time Game Boy(R) Advance
Ed, Edd, n Eddy(TM): Jawbreakers Game Boy(R) Advance
4x4 Evo 2(TM) (released in Europe only) Sony(R) PlayStation(R) 2
"Our revenues reflect a smaller roster of new products delivered to market
this quarter compared to a year ago, along with lower than expected reorders
during the post-holiday selling season," said Ray Musci, Chief Executive
Officer of BAM! Entertainment. "While we are disappointed with our results,
we continue to focus on improving operating margins and building the strength
of the product portfolio scheduled for release in the second half of the
calendar year."
Key titles currently slated for release during the remainder of calendar
year 2003 include: the first release of Carmen Sandiego for next generation
consoles; Ice Nine, a stealth action game; an action-adventure game based on
the popular Cartoon Network(TM) franchise The Powerpuff Girls(TM); and Wallace
& Gromit in Project Zoo, the first product scheduled for release under the
company's agreement with Oscar award-winning Aardman Animation Studios.
BAM! Entertainment is currently displaying its fall lineup at the
industry's largest tradeshow, The Electronic Entertainment Expo (E3), which is
being held at the Los Angeles Convention Center May 14-16, 2003. BAM!
Entertainment will be showcasing its products in the convention center's West
Hall, room 510.
About BAM! Entertainment, Inc.
Founded in 1999 and based in San Jose, California, BAM! Entertainment,
Inc. is a developer, publisher and marketer of interactive entertainment
software worldwide. The company develops, obtains, or licenses properties
from a wide variety of sources, including global entertainment and media
companies, and publishes software for video game systems, wireless devices,
and personal computers. The company's common stock is publicly traded on
NASDAQ under the symbol BFUN. More information about BAM! and its products
can be found at the company's web site located at http://www.bam4fun.com.
This release contains statements that are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on current estimates and projections about BAM!
Entertainment's business, which are derived in part on assumptions of its
management, and are not guarantees of BAM! Entertainment's future performance,
as such performance is difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors. Such factors include, but
are not limited to, those described in BAM! Entertainment's Annual Report on
Form 10-K for the year ended June 30, 2002, and its Quarterly Report on Form
10-Q for the three-month period ended December 31, 2002, which are filed with
the U.S. Securities and Exchange Commission. Readers of this release are
referred to those filings. BAM! Entertainment does not intend to update any
of these forward-looking statements after the date of this release.
NOTE: BAM! Entertainment, BAM! and BAM!4 are trademarks of BAM!
Entertainment, Inc. PlayStation is a registered trademark of Sony Computer
Entertainment Inc. Nintendo GameCube is a trademark of Nintendo of America,
Inc. Nintendo and Game Boy Advance are trademarks of Nintendo. Xbox is a
trademark of Microsoft Corporation. All other trademarks are the property of
their respective owners.
BAM! ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
2003 2002 2003 2002
Net revenues $2,866 $7,017 $33,611 $36,758
Costs and expenses:
Cost of revenues
Cost of goods sold 1,962 5,290 20,714 22,036
Royalties, software costs,
and license costs 1,871 2,758 15,497 7,433
Project abandonment costs 1,032 275 5,343 275
Total cost of revenues 4,865 8,323 41,554 29,744
Research and development
(exclusive of amortization
of deferred stock compensation) 527 692 2,575 1,633
Sales and marketing (exclusive
of amortization of deferred
stock compensation) 1,186 1,831 8,198 8,156
General and administrative
(exclusive of amortization
of deferred stock compensation) 1,385 1,724 5,777 4,413
Amortization of
deferred stock compensation* 44 360 338 1,073
Restructuring costs 8 --- 1,761 ---
Total costs and expenses 8,015 12,930 60,203 45,019
Loss from operations (5,149) (5,913) (26,592) (8,261)
Interest income 3 135 146 231
Interest expense (50) (440) (576) (2,459)
Other income (expense) 72 (15) 48 (8)
Net loss $(5,124) $(6,233) $(26,974) $(10,497)
Net loss per share:
Basic and diluted $(0.35) $(0.43) $(1.84) $ (1.34)
Shares used in computation:
Basic and diluted 14,672 14,574 14,645 7,809
*Amortization of deferred stock compensation:
Research and development $(51) $55 $(27) $169
Sales and marketing (25) 24 (9) 73
General and administrative 120 281 374 831
$44 $360 $338 $1,073
BAM! ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
(Unaudited)
March 31, June 30,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $1,782 $4,726
Short-term investments --- 8,185
Accounts receivable, net of allowance
of $3,024 as of March 31, 2003 and
$3,720 as of June 30, 2002 2,590 10,183
Inventories 2,334 3,945
Prepaid royalties, capitalized software costs
and licensed assets, net 8,791 12,858
Prepaid expenses and other 1,806 2,539
Total current assets 17,303 42,436
Prepaid royalties, capitalized software and
licensed assets, net of current portion 1,179 5,467
Property and equipment, net 675 987
Long-term receivable, net of allowance
of $1,627 as of March 31, 2003 and $1,080
as of June 30, 2002 --- 547
Other assets 54 30
Total assets $19,211 $49,467
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - trade $2,941 $4,755
Short-term borrowings --- 1,359
Royalties payable 1,146 528
Accrued compensation and related benefits 851 972
Accrued software costs 800 1,488
Accrued expenses - other 1,021 1,509
Total current liabilities 6,759 10,611
Stockholders' equity:
Common stock $0.001 par value;
shares authorized; 100,000,000; shares issued
and outstanding: 14,678,290 and 14,582,756
as of March 31, 2003 and June 30, 2002,
respectively 15 15
Additional paid-in capital 62,982 62,988
Deferred stock compensation (325) (789)
Accumulated deficit (50,592) (23,618)
Accumulated other comprehensive income 372 260
Total stockholders' equity 12,452 38,856
Total liabilities and stockholders' equity $19,211 $49,467
BAM! ENTERTAINMENT, INC. AND SUBSIDIARIES
QUARTERLY FACT SHEET
(Dollars in thousands)
(Unaudited)
Percentage
of sales for the
Three months ended three months ended
March 31, March 31,
2003 2002 2003
Geographic sales mix
North America $2,618 $4,657 91.3%
International 248 2,360 8.7
Total net revenues $2,866 $7,017 100.0%
Platform revenue mix
PlayStation 2 $768 $2,512 26.8%
GameCube 35 576 1.2
Xbox (173) --- (6.0)
Gameboy Advance 1,066 2,538 37.2
Gameboy Color (80) 315 (2.8)
N64 (6) (1) (0.2)
Personal Computer 153 (78) 5.3
PlayStation 1 1,103 1,155 38.5
Total net revenues $2,866 $7,017 100.0%
SOURCE BAM! Entertainment
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Related links:
http://www.bam4fun.com
CONTACT:
Mika Kelly, Public Relations Manager of BAM!
Entertainment, Inc., +1-408-298-7500, ext. 323, or
mkelly@bam4fun.com
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