Civ 3 and Infogrames (IFGM)

[siredgar]

By the way, what the heck is up with Infogrames (IFGM) stock? I bought shares over a year ago betting on Civ 3 (among other things) and they doubled in price during the summer and then went back down. The quarterly report just came out saying Infogrames finally turned up a profit and dramatically increased revenues because of Civ 3, etc. I don't hear of many companies doing that these days. And yet, the stock is going down even more. They're supposed to publish Neverwinter Nights soon, too. I don't understand this stock at all. I haven't lost any money yet, but I should have doubled my investment by now. Anyone else own shares betting on Civ 3?

[Libertarian]

Spooky. Don't know whether it applies here, but it reminds me of what happened to Borland (remember Borland?). Their stock shot through the roof just after releasing Quattro Pro, which critics hailed as the product that would kill Lotus 123. Borland was the darling of the industry as investors bought stock hand over fist. The bailout began as soon as Borland announced its plans to build a new headquarters.

Check on Infogrames' cash asset.

[siredgar]

It's weird because it went up when nothing was going on during the summer and now it's going nowhere despite a great quarterly report. Revenues went up nearly 50% over the last period! I mean who the heck else is turning a profit right now?

http://news.moneycentral.msn.com/ticker/article.asp?Feed=PR&Date=20020212&ID=1418478&Symbol=US:IFGM

Infogrames Reports Record Results for the First Six Months of Fiscal 2002
February 12, 2002 4:17:00 PM ET

NEW YORK, Feb. 12 /PRNewswire-FirstCall/ -- Infogrames, Inc. IFGM, a global publisher of interactive entertainment software, today announced results for the six months and second quarter of fiscal 2002 ended December 31, 2001.

Revenues for the six-month period climbed 48% to $247.5 million from $167.0 million in the comparable year-earlier period. Net income of $12.7 million, or $0.18 per diluted share, for the six-month period ended December 31, 2001 represented a significant improvement over the first half of fiscal 2001 when the Company reported a net loss of $16.3 million, or $0.37 loss per diluted share. EBITDA (earnings before interest, taxes, depreciation and amortization) for the six months ended December 31, 2001 also showed dramatic growth, increasing to $20.7 million versus a $1.0 million loss in the comparable 2001 fiscal period. Results for the current six-month period include a charge of $4.2 million associated with Kmart's bankruptcy. Excluding this charge, adjusted EBITDA for the current six-month period was $24.9 million, or $0.36 per diluted share, versus adjusted EBITDA of $6.2 million, or $0.14 per diluted share, for the six months ended December 31, 2000.

Effective July 1, 2001, the Company elected the early adoption of Statement of Financial Accounting Standards 142, which discontinued the amortization of goodwill. Accordingly, goodwill amortization of $6.0 million was provided in the six months ended December 31, 2000 and no goodwill amortization was recorded during the six months ended December 31, 2001.

For the fiscal second quarter ended December 31, 2001, the Company reported revenues of $165.8 million, up 30% from revenues of $127.5 million in the comparable year-earlier period. The shift in product mix and the associated manufacturing costs, royalties, selling and distribution costs resulted in lower gross margins and operating income in the 2002 period versus the 2001 period. These changes in gross margin were anticipated and are expected to be consistent with future results. Net income for the quarter ended December 31, 2001 of $12.2 million, or $0.17 per diluted share, was down when compared with net income of $16.5 million, or $0.24 per diluted share, in the second quarter of fiscal 2001. Goodwill amortization approximated $3.0 million in the three months ended December 31, 2000. No amortization of goodwill was provided in the current quarter ended December 31, 2001. EBITDA of $16.2 million for the second quarter of fiscal 2002 decreased from EBITDA of $22.4 million in the second quarter of fiscal 2001. During the 2002 quarter the Company recorded a charge of $4.2 million associated with Kmart's bankruptcy. Adjusted EBITDA, excluding the Kmart charge, was $20.4 million, or $0.29 per diluted share for the period, versus adjusted EBITDA of $22.9 million, or $0.33 per diluted share, for the comparable year-earlier quarter.

"Our record results for the first half of fiscal 2002 reflect the growing strength of our product line-up and platform mix," said Bruno Bonnell, Chairman and CEO of Infogrames, Inc. "The momentum with which we began the fiscal year continued through the holiday season. We had tremendous success with our PC line-up, including the Backyard Sports series, Civilization III, and Survivor, among others; strong performance from our PlayStation2 line-up, including Splashdown and Test Drive Off-Road Wide Open; and continued success from our PSone titles, including Driver 2. In addition, we were one of the leading third-party publishers supporting the launch of the Xbox, releasing three games, including the highly rated TransWorld Surf."

Mr. Bonnell continued, "We believe we are at the start of an upswing and that our performance will only improve over the next several quarters. The domestic market for interactive entertainment is as strong as it has ever been, and the international launches of the Xbox and GameCube are imminent. As a publisher, this presents an ideal environment; we intend to capitalize on the growing opportunities by releasing approximately 75 new titles over the next 10 months, spanning all platforms. In addition, we will capitalize on the global appeal of our products by republishing them internationally through our parent company, simultaneously generating royalties and enhancing the value of these properties."

Publishing revenue rose 47% to $192.1 million for the first half of fiscal 2002 from $130.7 million in the comparable 2001 period. Fueling this growth were products from Infogrames Interactive, Inc. (formerly Hasbro Interactive), including Sid Meier's Civilization(R) III (PC), RollerCoaster Tycoon(R) (PC), Monopoly Tycoon(TM) (PC), and the *NSYNC(R) Hotline Fantasy Phone and CD-ROM (PC), as well as products from the Company's other studios, including Survivor(TM): The Interactive Game (PC), Backyard Basketball(TM) (PC), Backyard Football(TM) 2002 (PC), Splashdown(TM) (PS2), Test Drive Off-Road Wide Open(TM) (PS2), Driver(TM) 2 Greatest Hits (PSone), and Deadly Dozen(TM) (PC), among others.

Other noteworthy achievements from the Company's product line-up include:

* The Backyard Sports franchise ranked as the #1 CD-ROM Kids
Entertainment Brand for 2001, ahead of perennially standouts Barbie
and Lego. (Source: NPD Techworld)
* In just 11 weeks in circulation during calendar 2001, Sid Meier's
Civilization III, which debuted at #1 on the PC Sales Charts, earned
the #23 rank of the Top 100 PC Games for 2001. (Source: NPD)
* Splashdown ranked in the Top 25 of all video games during the prime
holiday shopping period between Thanksgiving and Christmas.
(Source: NPD).
* Survivor: The Interactive Game ranked #9 among all PC Games sold
during December. (Source: NPD)
Distribution revenue grew 53% to $55.4 million from $36.3 million during the first six months of fiscal 2001, primarily reflecting the impact of the Company's third-party and affiliate deals, which include agreements with Codemasters (Operation Flashpoint) and Strategy First (Cossacks), among others.

About Infogrames

New York-based Infogrames, Inc. IFGM is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company develops video games for all consoles (Sony, Nintendo and Microsoft), PCs, and Macintosh systems. Infogrames' catalogue of more than 1,000 titles includes award-winning franchises such as Civilization(R), Backyard Sports(TM), Deer Hunter(R), Driver(TM), RollerCoaster Tycoon(R), Test Drive(R), and Unreal(R), and key licenses including Survivor(TM), Warner Bros. Looney Tunes(TM), Nickelodeon's Blue's Clues(TM), Dragon Ball Z(R), Mission Impossible(R), Harley-Davidson(R), Major League Baseball(R), and the National Football League(R), among many others. The Company's Humongous Entertainment and MacSoft labels are leaders in children's and Macintosh entertainment software, respectively.

Infogrames, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (IESA) (Euronext 5257), a global publisher and distributor of video games for all platforms, as well as interactive digital television, and mobile smart devices (WAP, HDML). In 2001, IESA acquired Infogrames Interactive, Inc. (formerly Hasbro Interactive), including its line of software based on well-known licenses such as Monopoly(R), Jeopardy(R), Tonka(R), and Atari(R), which are published and distributed in the U.S. by Infogrames, Inc. For more information, visit the Company's Web site at http://www.infogrames.com.

SAFE HARBOR STATEMENT

Certain statements contained in this release are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks the protection afforded by the Private Securities Litigation Reform Act of 1995 and other enabling legislation. Statements contained herein with regard to the company's business outlook and prospective operating and financial results are based upon management's expectations regarding various factors, which may be beyond the company's control. This statement is not intended to identify each and every risk and uncertainty inherent in the company's business, and should be read in conjunction with the company's cautionary statements contained in its most recent filings with U.S. and foreign regulatory authorities.

INFOGRAMES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

For the Three Months For the Six Months
Ended December 31, Ended December 31,

2000 2001 2000 2001

Net revenues $127,484 $165,776 $166,962 $247,458
Cost of goods sold 45,993 79,302 61,092 117,049
Gross profit 81,491 86,474 105,870 130,409
Selling and distribution
expenses 26,777 38,920 42,335 55,118
General and
administrative
expenses 21,476 15,387 33,696 23,922
Research and
development 16,343 15,934 34,625 30,646
Merger costs -- -- 1,700 --
Gain on sale of line
of business 5,501 -- 5,501 --
Depreciation and
amortization 4,564 1,071 8,622 2,168
Operating income
(loss) 17,832 15,162 (9,607) 18,555
Interest expense 2,554 3,476 8,714 6,362
Other income 1,191 472 1,898 522
Income (loss) before
benefit from
income taxes 16,469 12,158 (16,423) 12,715
Benefit from
income taxes (6) (16) (101) (12)

Net income (loss) $16,475 $12,174 $(16,322) $12,727
Basic net income
(loss) per share $0.24 $0.17 $(0.37) $0.18
Weighted average shares
outstanding - basic 68,135 69,738 44,410 69,634
Diluted net income
(loss) per share $0.24 $0.17 $(0.37) $0.18
Weighted average shares
outstanding - diluted 68,691 70,007 44,410 70,081


EBITDA * $22,396 $16,233 $(985) $20,723


Adjusted EBITDA** $22,895 $20,433 $6,214 $24,923
Adjusted EBITDA** per
diluted share $0.33 $0.29 $0.14 $0.36
* EBITDA is defined as operating earnings before interest, taxes,
depreciation and amortization
** Adjusted EBITDA is defined as operating earnings before interest,
taxes, depreciation and amortization adjusted to exclude the effect
of any unusual charges, merger costs, special customer allowances and
unusual gains such as gain on sale of a line of business
MAKE YOUR OPINION COUNT - Click Here

http://tbutton.prnewswire.com/prn/11690X67638599

© 2002 PRNewswire

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[Libertarian]

The net income looks pretty weak. By the way, do you realize you just copied and pasted copyrighted material?

[siredgar]

Come and get me!

My spearmen await your arrival.

[Libertarian]

Actually, they would come and get Mark and Dan.

[Rust]

Actually, we should go after this unethical piece of **** that leeches off other peoples work. Bring on the Panzers.

[siredgar]

Originally posted by Rust
Actually, we should go after this unethical piece of **** that leeches off other peoples work. Bring on the Panzers.

Who are you talking about? Have I done something wrong for investing in a company's stock like millions of other people in America? If you're talking about me, you're a complete and hopeless IDIOT. Good luck with life.

[BucksRock]

Siredgar:

The stock market could care less about how Civ 3 is selling right now. The market generally looks 9-12 months ahead. If the stock is going down, you should be asking yourself:

What kind of pipeline does Infogrames have, other than NWN?
Are they on schedule? Are there unforeseen delays?

Do you know what Infogrames' financial position is? Do they have a lot of debt? Do they have enough liquid assets? Is there enough cash flow and is it increasing?


Not trying to be a jerk but if you're putting your hard-earned money into a company just because they're due to be releasing some cool games you should run (not walk) to somebody who knows what they're doing so they can save you from yourself.