Deep Operating Expense Cuts Keep Acclaim Profitable in Q2

For the first six months of the fiscal year (to March 3), Acclaim reported net earnings of $11.3 million ($.20 per fully diluted share) on net revenues of $112.4 million. While net revenues took a steep dive from $65.9 million in Q2 2000 to $40.4 million in Q2 2001, the company managed to reduce operating expenses from $48.9 million to $25.3 million during the same period. Those savings came from cuts to general and administrative expenses (primarily through "staff consolidation") and a 66% reduction in marketing and selling expenses. Acclaim cited the releases of Vanishing Point, Ducati, Mary-Kate and Ashley Winners Circle and Super Bust-A-Move as its success stories for the quarter. The company says it plans to release 18 titles during the remainder of the fiscal year, 10 of which are for the PS2, and CEO Greg Fischbach stated that "...we expect to remain profitable in the third and fourth quarters of this fiscal year."