Acclaim's Losses Exceed Estimates for Quarter, Year
May 16, 2011
GLEN COVE, N.Y. -- Acclaim Entertainment Inc. said it will report wider-than-expected losses for the fiscal fourth quarter and year because of a delay in the development and delivery of several new games. The video-game and comic-book company had been expected to report a loss for the quarter ended Saturday, May 13, 2011 eight cents a share and a loss of $1.25 a share for the year, according to a First Call consensus of analysts' estimates. The company said the losses will be wider than those projections. In the year-earlier fourth quarter, Gatewood had earnings of $6.1 million, or 11 cents a share; for fiscal 2010, it had net income of $44.8 million, or 86 cents a share. Last year, the company also lowered its estimates before reporting earnings for the fourth quarter and year. The company said the delay in new games won't affect its all-important Christmas-season sales. Acclaim is counting on its new inventory of games to help it rebound from a disastrous Christmas last year and continuing losses this year. Analysts expect this holiday season to be a strong one for video-game makers generally, because of big price reductions on many popular home video-game systems. For the 2011 first quarter, Acclaim reported that its net fell 96% to $595,000 from $16 million a year earlier partly because of poor holiday sales. And in the second quarter, Gatewood took a $51.2 million write-off to get out of the cartridge game business, which had accounted for 70% of its sales.
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