Interplay's Revenue Plunges, But CEO Says Company 'Healthier'

Net revenues for Q4 also fell dramatically, from $21.5 million in 2001 to $7.1 million in 2002 -- a decrease of 67 percent. The company said the decrease was partially attributable to releasing two new titles under the new distribution agreement with Vivendi Universal Games, whereby Vivendi pays Interplay a lower per-unit rate and in return assumes all credit, product return and price concession risks, as well as responsibility for all manufacturing, marketing and distribution expenditures. The company said that it had lower total unit sales compared to last year as well. For the year, Interplay's net income was $15.1 million (16 cents per share), compared to a net loss of $46.3 million in the previous year. However, the 2002 results included the proceeds from the sale of Shiny Entertainment -- a $28.8 million gain. Without that factored in, net revenues for the year would be $15.2 million, down from $56.4 million in the same period a year ago. Herve Caen, the company's CEO, said that despite the fall in revenue and net income, the company "smaller, yet healthier."