Acclaim Revenues Up, Profits Down In Q3

For the quarter ended May 31, the company reported net income of $2.5 million (3 cents per share), compared with net income of $7.4 million (12 cents per share) last year. Revenue in the quarter was $62.9 million, up significantly from $38.6 million a year ago. "The results for the quarter reflect the successful and timely launches of our key releases for the quarter, Headhunter and Aggressive Inline, as well as the continued strength of our portfolio which contributed 32% of our net revenues," said Gregory Fischbach, Co-Chairman and CEO. "While we are disappointed that our company did not achieve our 'top line' guidance, we believe that we will realize this net revenue shortfall in the fourth quarter." Operating expenses for the first nine months of fiscal 2002 came to $99.4 million -- $15.3 million higher than last year due to increased marketing, advertising, trade show (primarily E3) and royalty expenses. For fiscal 2002 the company maintained its guidance for revenue and earnings per share.