MicroProse earnings trail projections

December 24, 1992|By Bloomberg Business News

MicroProse Inc. said it will post lower-than-expected third-quarter earnings of between 12 cents and 18 cents a share because of a delay in shipping new products until the end of the quarter.

Analysts had been expecting earnings of about 46 cents a share, according to Zack's Investment Research.

MicroProse, an entertainment software publisher based in Hunt Valley, said sales would still be higher than a year ago, but they will be lower than earlier predictions.

In the 1991 quarter, Microprose's net income was $2.3 million, or 34 cents a share, on revenue of $13.1 million. The company's fiscal year ends in March.

"Although we still need to improve our ability to ship new software products as scheduled, our strategy of only releasing products when they meet our standards is the best for our long-term growth," said Bill Stealey, chairman and chief executive officer.

MicroProse also said earnings would be lower because of additional investments in marketing and product development of bit video games. The software will run on Nintendo Ltd. and Sega Enterprises Ltd. machines. In the past year, they have introduced more powerful 16-bit memory game consoles that replace their older 8-bit systems.

During the quarter, Microprose shipped about 100,000 units of its newest action game release, "F-15 Strike Eagle III," and launched three other titles -- "World Circuit," a racing game; "Task Force 1942," a naval simulation game; and "Jump Jet," a flight-simulation game. The company also shipped one Nintendo game, "F-117A Stealth Fighter," and received approval to produce "Super Strike Eagle" for Nintendo.

MA MicroProse shares closed at $7.50, down $3, in heavy trading.

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