TDK Mediactive Q2 Net Sales Jump 267% to $16.9 Million and Net Income Increases to $1.5 Million, or $0.06 per Share
Posted by benadmin on Tuesday, October 15 2002

TDK Mediactive Inc. (OTC BB: TDKM), a global publisher of entertainment software, today previewed its Q2 results and reiterated its financial guidance for the full fiscal 2003 year.

TDKM's net sales for the second quarter ended September 30, 2002 rose 267% to $16.9 million, compared to year-ago Q2 net sales of $4.6 million. Second quarter sales growth was driven principally by initial shipments of the highly anticipated Robotech: Battlecry for PlayStation(R)2 and Xbox(TM), which shipped September 23, 2002.

TDKM expects Q2 net income of approximately $1.5 million and EPS of $0.06 compared to a year-ago Q2 net loss of ($95,000) or breakeven per share. TDK Mediactive plans to report final Q2 results and host a conference call/webcast on Monday, October 28, 2002. Confirmation of the reporting date and conference call/webcast details will be announced shortly.

Vincent Bitetti, chief executive officer of TDK Mediactive, commented: "As expected, Robotech: Battlecry is seeing strong demand within the large, dedicated and loyal base of Robotech fans, achieving solid sell-through to-date and favorable word of mouth and initial reviews. Our launch strategy was to create excitement and `buzz' around the game with fans and hardcore gamers and then leverage that exposure to introduce Robotech to casual gamers who may be new to the brand, supporting our October launch of Robotech for GameCube(TM) and Game Boy(R) Advance.

"Looking toward the remainder of fiscal 2003, we have an excellent slate based on Shrek, Robotech, Mercedes Benz, Masters of the Universe and other console and handheld titles. We have focused more resources on current generation titles for the remainder of the year, trimming two titles for PS One and pushing one PC `edutainment' title into the next fiscal year.

"We remind our investors that given our industry's holiday seasonality and the related timing of our release schedule, our December quarter is our strongest quarter as it relates to revenue. Based on the great licenses we've secured, the quality of the games we are publishing and extensive marketing and sales efforts that have paved the way for our games, we believe we are well on the way to another year of tremendous growth and accomplishment. Accordingly, we are reaffirming our full year net sales guidance of $50 million (+59% versus fiscal 2002) and earnings per diluted share guidance of approximately $0.05 (+400% versus fiscal 2002)."

Updated Q3 (ending 12/31/02) Release Slate:

-- Nintendo GameCube(TM): Robotech(R): BattleCry(TM); Shrek(R)

Extra Large

-- Xbox(TM)video game system from Microsoft: Shrek(R)Super Party

-- PlayStation(R)2 computer entertainment system: Shrek(R) Super

Party

-- Game Boy(R)Advance: Robotech(R): The Macross Saga(TM); Masters

of the Universe(TM) He-Man: Power of Grayskull(TM); Shrek(R)

Hassle at the Castle

-- PlayStation(R)computer entertainment system: Shrek(R)Treasure

Hunt; The Land Before Time(TM): Big Water Adventure(TM)

-- Personal Computer: The Land Before Time(TM): Big Water

Adventure(TM); Shrek(R)Swamp Fun: with Early Math;

Shrek(R)Swamp Fun: with Phonics

Updated Q4 (ending 3/31/03) Release Slate:

-- Nintendo GameCube(TM): Shrek(R)Super Party; Aquaman(TM):

Battle for Atlantis

-- Xbox(TM)video game system from Microsoft: Mercedes-Benz: World

Racing; Aquaman(TM): Battle for Atlantis

-- Game Boy(R)Advance: Muppets(TM)(TBD)

Robotech(R)&(c)1985, 2002, Harmony Gold USA, Inc. All Rights Reserved.

Shrek(R)&(c)2002 DreamWorks L.L.C.

Muppets(TM)&(c)2002 The Jim Henson Company

AQUAMAN(TM)&(c)2002 DC Comics. All Rights Reserved.

The Land Before Time are trademarks and copyrights of Universal Studios. All Rights Reserved.

Masters of the Universe and associated trademarks are owned by and used under license from Mattel, Inc.(c)2002 Mattel, Inc. All Rights Reserved.

Mercedes-Benz is a trademark of DaimlerChrysler. Intellectual Property Rights licensed by DaimlerChrysler AG to TDK Recording Media Europe S.A., North American Distribution rights granted to TDK Mediactive, Inc.

About TDK Mediactive, Inc.

Southern California based TDK Mediactive, Inc. is a global publisher of high quality interactive entertainment software for the PlayStation(R)2 computer entertainment system, PS one(TM) game console, Xbox(TM) video game system from Microsoft, and the Nintendo GameCube(TM), Game Boy(R) Advance and Game Boy(R) Color systems. The company also publishes titles for personal computers via a co-publishing agreement with Activision Value, a subsidiary of Activision, Inc. The company's games are based on licensed and original content derived from major motion pictures, video franchises, popular literature and popular culture. TDK Mediactive has exclusive technology and content licenses with Sony Computer Entertainment America Inc., Microsoft Corporation, Nintendo of America Inc., DreamWorks SKG, Disney Interactive, Vivendi Universal Studios, Mattel, Inc., Classic Media, BKN International, DC Comics, Hallmark Entertainment Distribution LLC, BDSP Inc., The Jim Henson Company, General Motors Corporation, Infogrames Interactive, Inc., and others.

TDK Mediactive is 73% owned by TDK USA Corp. and is part of TDK Corporation's (NYSE: TDK) global effort to expand its offerings to consumers of entertainment-oriented products. More information about TDK Mediactive and its products is available at www.tdk-mediactive.com.

This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstance. Readers should carefully review the risk factors described in the documents the Company files from time to time with the Securities and Exchange Commission.