Acclaim Entertainment, Inc. Announces Non-Cash Restatement of 2001 Results of Operations And Subsequent Period Balance Sheets
05 Mai 2004 - 2:00PM
PR Newswire (US)
Acclaim Entertainment, Inc. Announces Non-Cash Restatement of 2001
Results of Operations And Subsequent Period Balance Sheets GLEN
COVE, N.Y., May 5 /PRNewswire-FirstCall/ -- Acclaim Entertainment,
Inc. today announced that as a result of the Company's internal
review of its financial reports for its fiscal year ended March 31,
2004, the Company discovered an accounting error, which occurred
during the Company's 2001 fiscal year. In fiscal 2001, the Company
incorrectly recorded a $9.5 million bank advance relating to a
junior participation transaction between the Company, its primary
lender and six junior participants. As a result of this accounting
error, the Company will be restating its audited financial
statements for its fiscal year ended August 31, 2001, as well as
its quarterly and year-end balance sheets (both audited and
unaudited) included in the financial statements for the Company's
fiscal years ended August 31, 2002 and March 31, 2003. The Company
anticipates that this restatement will result in a reduction, by
$9.5 million, of the Company's net earnings for fiscal year 2001,
from a reported amount of $17.3 million to $7.8 million (from $0.26
to $0.12 per diluted common share). The Company expects that there
will be no impact on its historical cash flows or cash position;
however, this restatement will affect all of the Company's reported
balance sheets (audited and unaudited), subsequent to August 31,
2001, by increasing both the Company's short-term borrowings and
accumulated deficit by $9.5 million. This adjustment will not
impact the Company's current or historical cash balances. This
press release includes certain statements regarding, among other
things, the amounts and expected effect of a non-cash restatement
of the Company's audited financial statements, which constitute
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. Such statements
are subject to certain risks and uncertainties, including, the risk
that the information being provided herein is preliminary and is
subject to further verification and confirmation. Such risks and
uncertainties could cause actual results to differ materially from
those being projected herein. The Company's management believes
these forward looking statements are reasonable based on current
expectations; however, undue reliance should not be placed on such
forward looking statements. About Acclaim Entertainment Based in
Glen Cove, N.Y., Acclaim Entertainment, Inc., is a worldwide
developer, publisher and mass marketer of software for use with
interactive entertainment game consoles including those
manufactured by Nintendo, Sony Computer Entertainment and Microsoft
Corporation as well as personal computer hardware systems. Acclaim
owns and operates five studios located in the United States and the
United Kingdom, and publishes and distributes its software through
its subsidiaries in North America, the United Kingdom, Australia,
Germany, France and Spain. The Company uses regional distributors
worldwide. Acclaim also distributes entertainment software for
other publishers worldwide, publishes software gaming strategy
guides and issues "special edition" comic magazines periodically.
Acclaim's corporate headquarters are in Glen Cove, New York and
Acclaim's common stock is publicly traded on Nasdaq under the
symbol AKLM. For more information please visit our website at
http://www.acclaim.com/ . The statements contained in this release,
which are not historical facts, are "forward-looking statements."
Acclaim cautions readers of this press release that a number of
important factors could cause Acclaim's actual future results to
differ materially from those expressed in any such forward-looking
statements. These important factors, including, without limitation,
the financial strength of the interactive entertainment industry,
dependence on new product introductions and the ability to maintain
the scheduling of such introductions, technological changes,
dependence on major platform manufacturers and other factors that
could affect Acclaim, are described in Acclaim's Annual Report on
Form 10-K for the fiscal year ended March 31, 2003, and Acclaim's
subsequent Quarterly Reports on Form 10-Q, all of which were filed
with the United States Securities and Exchange Commission. Readers
of this press release are referred to such filings. Contacts:
Edward M. Slezak Alan B. Lewis Acclaim Entertainment, Inc. Acclaim
Entertainment, Inc. (516) 656-5000 (516) 656-5000 DATASOURCE:
Acclaim Entertainment, Inc. CONTACT: Edward M. Slezak,
+1-516-656-5000, or , or Alan B. Lewis, +1-516-656-5000, or , both
of Acclaim Entertainment, Inc. Web site: http://www.acclaim.com/
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