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.