In July, the company acquired two-year revolving credit line from GE Captial for up to $15 million, and one of the contingencies of that loan was the need to raise $4.6 million in additional equity or debt financing by Oct. 1 -- which Hawkins said he would personally provide, if needed. It turns out it was needed, so Hawkins agreed to lend the company the funds for a term of six months at a 9.5% interest rate.
Separately, 3DO lowered its guidance for fiscal Q2 and Q3 by almost 40%, and lowered estimates for fiscal 2003. The company now projects annual revenues of $42-45 million, down from earlier analyst estimates of $52.8 million, which will result in a net loss of $6-9 million.
The company blamed its lower guidance on the need lengthen its product development schedules to deliver better games, which in turn shifted releases back into the 2003 calendar year -- resulting in a "slow revenue period from April through December 2002 during which it has no major new products being released."
Shares of 3DO fell about 7% on the news, closing at $1.32.
