Interplay Returns To Profit

Officials from Interplay have announced the company’s operating results for the fourth quarter and year end of 2003. For the fourth quarter ended December 31, the company reported a net income of $3.3 million, or $.04 per basic and diluted common share, compared to a net loss of $5.4 million, or $.06 per basic and diluted common share, in the same period last year. Net revenues were $11.5 million versus $7.1 million in the same period a year ago, an increase of 62%. The company’s full year results saw a net income of $1.3 million, or $.01 per basic and diluted common share, compared to a net income of $15.1 million, or $.18 per basic common share and $.16 per diluted common share, in the same period last year. Net revenues were $36.3 million versus $44.0 million in the same period a year ago, a decrease of 18%. Operating income increased 111% from the prior year to $1.4 million. The discrepancy in net income for the full year, compared to 2002, is due to the sale in the previous year of Shiny Entertainment for $28.8m. The company has been selling many of assets in an attempt to return to profitability, with the Hunter: The Reckoning license being sold this year for $15 million. CEO Herve Caen has commented that as a company, “We continue to operate under cash constraints.” Adding that, “Specifically, Interplay is three months in arrears on its corporate lease obligation, may have short-term payroll difficulties and has outstanding payroll tax obligations." In a conference call yesterday the company announced plans to develop sequels to a number of its older franchises, including Kingpin, Airborne, Exalted, Fallout, Earthworm Jim and Descent. Some of these franchises may be subsequently sold off; although Caen has stated that the company’s objective is to "solidify its position as a leading RPG publisher." Source: PR Newswire