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Acclaim expects major losses for March quarter

Publisher Acclaim has filed a financial report which indicates that it expects a net loss of between $40 and $50 million for the three months ended March 31st, compared with a profit of $4 million one year previously.

Publisher Acclaim has filed a financial report which indicates that it expects a net loss of between $40 and $50 million for the three months ended March 31st, compared with a profit of $4 million one year previously.

In a form filed with the American Securities and Exchange Commission, Acclaim indicates that it will be late in filing full results for the quarter due to a change in its fiscal year-end to March 31 from August 31. As such, its results for 2002/03 will only cover seven months rather than the full 12.

During that seven month period, Acclaim expects a net loss of between $60 million and $70 million, compared to profits of $12 million in the same seven months a year previously.

These forecasted losses are attributed to a wide range of factors, including the underperformance of released titles, increased provisions for concessions and returns, higher development costs, and a business restructuring charge. The company also mentions an impaired asset charge related to an office facility in the UK which it is in the process of selling.

Author
Rob Fahey avatar

Rob Fahey

Contributing Editor

Rob Fahey is a former editor of GamesIndustry.biz who spent several years living in Japan and probably still has a mint condition Dreamcast Samba de Amigo set.