3DO Announces Q4 Results

The company reported a consolidated net loss of $12.5 million, or 26 cents per share, compared to a profit of $11.5 million, 26 cents per diluted share, for last year's fourth quarter. For the fiscal year, revenues totaled $82.8 million, down from $122.2 for the previous fiscal year, and a net loss of $66.2 million, or $1.59 per share before a non-cash charge for interest associated with warrants and beneficial conversion of debt. CEO Trip Hawkins commented, "It was a tougher industry transition this past year than expected, and we are glad that the worst appears to be over. We showed notable progress in the fourth fiscal quarter by meeting earnings expectations, by delivering a strong PS2 lineup, and by reducing expenses by 15 percent versus the prior fiscal quarter." He further commented that 3DO's gross margins were improving with the shift to the Playstation 2 platform.