Interplay Announces First Quarter Earnings; Posts First Profitable Quarter Since 2000 IRVINE, Calif., May 14 /PRNewswire-FirstCall/ -- Interplay Entertainment Corp. (Nasdaq: IPLY - News) reported operating results for the first quarter of 2002, announcing it has posted its first profitable quarter since the third quarter of 2000.
For the first quarter ended March 31, 2002, the Company reported net income of $1.5 million, or $.02 per diluted share, compared to a net loss of $8.4 million, or ($.30) per share, in the same period last year. The net revenue for the first quarter 2002 was $15.4 million versus net revenues of $16.8 million in the same period a year ago, a decrease of 9 percent. Gross profit margin for the first quarter 2002 was 71 percent, compared to 38 percent in the first quarter of 2001.
Net revenues by platform for the first quarter of 2002 were 27 percent PC, 11 percent console, and 62 percent OEM, royalties and licensing. The increase in gross profit margin was mainly the result of a 597 percent growth in OEM, royalties, and licensing over the same period last year, which was primarily due to the recording of revenue of $5.6 million and related cost of sales of $0.6 million from the sale of publishing rights to another game distributor and revenue of $2.5 million related to the sales of certain licensing rights.
On a geographic basis, North America accounted for 29 percent of total net revenues, international represented 9 percent, and OEM, royalty and licensing accounted for 62 percent.
Total operating expenses, as a result of management's continued efforts to reduce expenditures, were down 33 percent for the quarter versus the first quarter in 2001.
The company also announced it has applied to be moved to the Nasdaq SmallCap market. In accordance with its February 15 deficiency notice from Nasdaq, Interplay acknowledged it has not met, among other Nasdaq requirements, the minimum bid price of $1.
"We are delighted to have returned the company to profitability so soon following our strategic management changes, particularly in a quarter when the company did not ship any new products," commented Interplay Chief Executive Officer Herve Caen, who became CEO in January.
"This quarter marks an important milestone for Interplay, its shareholders, and employees," Caen continued. "The announced sale of our Shiny Entertainment subsidiary on April 25 provides further proof that our Board and management are gaining momentum in the execution of our plan. Looking forward, we are also optimistic that previews at the all-important Electronic Entertainment Expo (E3) and the release of Interplay's highly- anticipated Hunter: The Reckoning� on Xbox later this month will accelerate that momentum."
Interplay Entertainment is a leading developer, publisher and distributor of interactive entertainment software for both core gamers and the mass market. Interplay develops games for personal computers as well as next generation video game consoles, many of which have garnered industry accolades and awards. Interplay releases products through Interplay, Digital Mayhem, Black Isle Studios, its distribution partners, and its wholly owned subsidiary Interplay OEM Inc