MicroProse Inc. confirms $4.9 million quarterly loss Costs, poor sales blamed

firm girds for more red ink

July 16, 1993|By Kim Clark | Kim Clark,Staff writer

After weeks of hints, MicroProse Inc. confirmed yesterday that high costs and poor sales of some of its fantasy computer games caused it to lose $4.9 million in the three months that ended March 31, and $5.3 million in its fiscal 1993.

And the company said the financial pain did not stop there.

The Hunt Valley-based game maker warned investors to expect a "significant net loss" for its first quarter of 1994, which ended June 30.

The company said its cost of sales jumped 60 percent, or by nearly $4 million, in its last fiscal quarter, primarily because of a $1.1 million inventory write-down and a $1 million charge to write off development of poor-selling games.

MicroProse also said it had finalized a merger agreement with Spectrum HoloByte Inc., a small Alameda, Calif.-based game maker with big corporate backers.

Last month, Spectrum HoloByte announced it would invest $10 million in cash-strapped MicroProse in return for control of the company.

Spectrum has since invested the money, in the form of convertible bonds, in MicroProse, which has used most of it to pay off bank debt, said Shuan Hong, an industry analyst for Parker Hunter Inc. in Pittsburgh.

The merger, which is subject to stockholder approval, is not expected to be completed for several weeks.

MicroProse Inc.

MicroProse .. .. .. .. .. Ticker .. .. .. .. Yesterday's

Inc. .. .. .. .. .. .. .. Symbol .. .. .. .. .. Cls. .. .. .. Chg.

.. .. .. .. .. .. .. .. .. MPRS .. .. .. .. .. .. 6 3/4 .. .. .. .. - 1/2 Period ended

March 31 .. .. .. .. .. .. 4th qtr. .. .. .. .. Year ago.. .. .. Chg.

Revenue .. .. .. .. .. .. $12,104 .. .. .. .. .. $12,435.. .. .. 2.7%

Net Income .. .. .. .. .. ($4,873).. .. .. .. .. .. $918 .. .. .. --

Primary EPS .. .. .. .. .. ($0.74) .. .. .. .. .. .. $0.13 .. .. ..--

.. .. .. .. .. .. .. .. .. Year .. .. .. .. .. .. Year ago .. .. .. Chg.

Revenue .. .. .. .. .. .. $46,474 .. .. .. .. .. .. $41,386 .. .. .. +12.3%

Net Income .. .. .. .. .. ($5,268) .. .. .. .. .. .. $4,136 .. .. .. .. -- Primary EPS .. .. .. .. .. ($0.78).. .. .. .. .. .. .. $0.70 .. .. .. ..-- Figures in thousands (except per share data.)

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.