GT Interactive to Report Loss

In a conference call with Wall Street analysts Thursday, GT Interactive readied the Street for news of a dismal fourth quarter.

Revenues are expected to be between US$92 million and $97 million, and the net loss for the fiscal fourth quarter that ended March 31 is expected to be between $50 million and $55 million after various one-time charges, according to Reuters.

In the call, GT brass said it intended to reduce expenditures on non-performing products, reduce its staff by 35 percent, concentrate on its stable of PC games, and gear up for a full-on commitment to bringing a sizable number of PlayStation 2 games to the marketplace when the new console ships. "We expect to be a major player with PlayStation 2 a supporter of Nintendo." GT officials also paid credit to its "great PC team."

GT said it was in the process of "establishing realistic expectations for the business" and said 1999 would be the cornerstone for fiscal year 2000.

GT hopes to trim $6 to 8 million from its annual budget with the employee cuts and a new product lineup - which it will elaborate on later this month.

In related news, GT officials said the company will complete its move from New York City to the West Coast over the next few months.