Acclaim Warning

Acclaim Entertainment is warning that revenues and earnings for the second quarter ending February 29 will fall below analysts' expectations. Acclaim blames the results on a industry wide slowdown in the rate of sales growth of the main consoles, notably a slowdown in sales of the Nintendo software that Acclaim has focused on in the past. Combining that sales slump with a 35 percent increase in next-generation research and development spending, Acclaim projects a loss for the quarter of nearly $20 million. For the year, the company projects a net revenues to be 30 percent below last years result with a net loss of approximately $50 million. Acclaim will report its full results during the second week of April.