The company reported net revenues of $4.2 million, an 87% decrease from last year. The net loss for the third quarter was $20.6 million (50 cents per share) compared to net income of $0.1 million (1 cent per share) last year. For the first nine months of this year, Interplay's net revenues were off by 51% from last year.
In explaining the results, the company blamed its inability to ship games this year. Last year Interplay released 5 new titles in Q3 and 26 new titles year-to-date, while this year no new titles came out in Q3 and just 7 new titles have been released so far this year. In addition, the release of lower priced new PC titles and the Company's PC based back-catalogue business resulted in lower gross profit margins compared to last year.
The company said it recently laid-off people to help cut costs. During Q3 (which ended September 30) headcount was reduced by 10%, and in October another 15% of its workforce was let go as Vivendi took over North American marketing and distribution, making some positions redundant.
