Press release: 1995-05-22: 3DO Announces Fourth Quarter Financial Results

May 22 1995

3DO Announces Fourth Quarter And Fiscal 1995 Financial Results

REDWOOD CITY, Calif. - May 22, 1995- The 3DO Company (NASDAQ: THDO) today released financial results for the fourth quarter and 1995 fiscal year ended March 31, 1995, reporting revenue of $8.4 million in the current quarter compared to $4.2 million in the comparable quarter in the prior year. The net loss for the quarter ended March 31, 1995 totaled $7.9 million, or $0.33 per share, compared to a net loss of $7.4 million, or $0.37 per share, in the fourth quarter of the prior year.

For the full year ended March 31, 1995 revenues totaled $30.4 million, compared to $10.3 million in the prior fiscal year. Royalties and pressing fees of $18.6 million was the largest component of revenues in the current year, compared to $2.7 million in the prior year. The net loss for the fiscal year totaled $46.3 million, or $2.04 per share, which reflects a non-recurring operating charge of $8.4 million for the issuance of 3DO common stock under the company's hardware stock incentive program. The net loss for the prior fiscal year was $51.4 million, or $2.60 per share, which included a non-recurring operating charge of $21.4 million resulting from the company's acquisition of NTG. Excluding the non-recurring charges, the net loss for fiscal year 1995 would have been $37.9 million, or $1.67 per share, compared to a net loss of $30.0 million, or $1.52 per share, for the prior year.

"We have three main operating businesses: the next generation, 64-bit M2 technology, the current 3DO system, and Studio 3DO," said Trip Hawkins, President and CEO, The 3DO Company. "The M2 technology is still in the R&D; phase and therefore no revenue has been realized and significant engineering expenses are being incurred, while the current 3DO system is a profitable business for the company today. Additionally, Studio 3DO, our in-house development group, continues in its development phase with one title published to date and at least ten more scheduled for release this year. Revenues from the titles should begin to offset expenses."

3DO's software library now includes over 200 titles, compared to less than 50 titles at this time last year, with more than 185 additional titles currently in development. In addition, several titles have pressed more than 150,000 units, contributing to the total number of revenue-bearing CDs manufactured, which now exceeds five million. Adding to these numbers going forward, will be exclusive 3DOª titles coming from Studio 3DO. Scheduled for release this summer are the first three titles this year from Studio 3DO: Zhadnost: The People's Partyª, Killing Timeª, and BladeForceª. The company also recently unveiled its next-generation M2 technology, a 64-bit architecture designed to bring an experience usually found only on graphics workstations to the home. Based in Redwood City, Calif., The 3DO Company (NASDAQ:THDO) develops and licenses advanced interactive technology to hardware and software companies worldwide. The company's award-winning product design, the 32-bit 3DO Interactive Multiplayer system, was created to deliver a breakthrough in interactive entertainment at an affordable price. The current 3DO system is available worldwide from Panasonic, GoldStar, Sanyo, and Creative Labs.

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