Acclaim's Finances

On Friday, Acclaim Entertainment announced its financial results for the fiscal third quarter ending May 31, 1997.

Net revenues dipped to US$41.6 million from $62.6 million the previous year. Net loss for the quarter amounted to $69.7 million, a net loss of $1.40 a share, compared with a $4 million net loss for the same quarter last year.

The company's net loss included costs associated with the 1994 acquisition of Acclaim Comics, a $8.3 million litigation charge, and a $10 million downsizing charge related to the company's recent cost reduction efforts. "The costs related to these special items represent the implementation of difficult but necessary steps as the company nears the end of the transition/rebuilding process that has been undertaken over the past few quarters," said J. Mark Hattendorf, Executive Vice president and CFO of Acclaim Entertainment.

Sales of the company's first Nintendo 64 title, Turok: Dinosaur Hunter, represented 57 percent of gross revenues during the quarter ending May 31. PlayStation and Saturn software accounted for 19 percent of gross revenue, as compared to a 53 percent share last year. Acclaim's PC titles generated 17 percent of gross revenue, a drop of 1 percent from last year.

Acclaim's focus is now resting on fewer and better products, including a number of new Nintendo 64 titles.