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3DO Continues To Rack Up Losses In Q3

3DO announced fiscal Q3 results, chalking up a loss of $28.2 million on $15.2 million in revenue -- which includes a $14.1 million one-time restructuring charge.
That loss amounted to a loss of 54 cents per share, higher than the last year's 48 cents per share loss, and was slightly off analysts' estimates. For the first nine months of this fiscal year, revenue stands at $38.4 million, compared to $61.0 million last year, and the net loss stands at $47.4 million (96 cents per share). That's an improvement over last year at this time, when the company posted a loss of $64.5 million ($1.63 per share), but it's clear that 3DO needs to turn things around quickly. In early December the company announced that it had raised over $25 million in new capital during the quarter, but the net loss reported today more than wipes that out. The company's stock is trading at its 52-week low, and has lost about 85% of its value since August. The company attributed the loss to declining revenue from games on older platforms, and said that it was countering that with eight new games in development for the GameCube. Most of those games, however, will ship next fiscal year and won't help shore things up in the near future. "With lower spending levels in place, a market that is growing dramatically, and a strong slate of new games in solid brands, we expect significantly improved results in our next fiscal year," said Trip Hawkins, CEO. "In many respects, our brand mix struggled during the platform transition but market growth this year should expand the audience for both kids and casual-gamer adults where we have previously enjoyed notable success." Releases during Q3 were the following: Cubix Robots for Everyone: Race 'n Robots for the PlayStation, PC and GBC; Army Men: Operation Green for the GBA; Army Men: World War Team Assault for the PlayStation and Jonny Moseley Mad Trix, Dragon Rage and GoDai Elemental Force for the PS2.

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