3DO Quarterly Sales Fall By Half, Posts Further Losses

For the quarter, revenues dropped by more than half to $9.9 million, down from $20.2 million last year. Cost cutting helped 3DO trim its quarterly loss, but not quite enough to match the downturn in sales: losses were reduced by 42% to $9.7 million ($0.20 per share) compared to a loss of $16.7 million ($0.45 per share) last year. These results were in line with analyst expectations for the company. "With the upcoming holiday season, we are pleased to have most of the market transition behind us ... We continue to hold the line on operating expenses, have reduced inventory levels and improved accounts receivable collections," Said Trip Hawkins, 3DO's CEO. "We are not borrowing against our credit line and remain debt free. We look forward to returning to profitability in our fourth fiscal quarter." During the quarter, the company released Portal Runner for the PlayStation 2 and Game Boy Color, High Heat Major League Baseball for the Game Boy Advance, and Jumpgate, a massively multiplayer Internet game.