Certain of the statements
contained
herein, which are not of historical facts, are forward-looking statements
with respect
to events, the occurrence of which involve risks and
uncertainties.
Autodesk Announces Midway to Use
3ds Max Software for Its Next-Generation Titles
, Autodesk Inc.
(Logo: http://www.newscom
.
About 3ds Max software
3ds Max software is the most popular 3D tool for game development
with
consistent delivery of high-quality results. All other brand names, product names, or
trademarks
belong to their respective holders.
Business Editors
CHICAGO----Midway Games Inc.
The acquisition facilitates the Company's plans to deliver
games based on the Mortal
Kombat franchise on an annual basis;
Midway was the #1-ranked software publisher of games released
in all of 2004 based on average review scores on
Gamerankings.
FULL YEAR
RESULTS
Revenues for the year ended December 31, 2004 were $161.34 per share, compared with a
loss applicable to common stock of
$117.8 million reduction in administrative expenses resulting
from the favorable settlement of a litigation matter and the
associated reduced reserves for this
matter; and
-- $1.6 million of charges associated with the departures of two
senior executives
. "We will continue to invest heavily during 2005,
particularly in the areas of product development
and our product
pipeline. Zucker.midway.midway. is a leading developer and publisher of
interactive
entertainment software.34) $(2.43)
======== ======== ========= ========
Diluted $0. Fedesna.75 million.
(6) The Company incurred restructuring
and other charges related to
the consolidation of California product development and marketing
operations implemented during late 2002 and 2003.
(7) During the three-months ended December
31, 2004, the Company
settled aggregate liabilities of $6.3 million of accelerated imputed
dividends which were recorded upon the conversion of 4,304 shares
of Series D redeemable convertible
preferred stock to common stock
shares during June and July 2004.3 million of accelerated imputed
dividends which were recorded
upon the redemption of 1,312.
(9) Basic and diluted income
per share of common stock for the
three-months ended December 31, 2004 is calculated using income
allocable to common shares of $17. 31,
2004 2003
--------- ---------
Assets
Current assets:
Cash and cash equivalents $118,313 $41,682
Receivables
, net 15,724 15,814
Inventories
6,893 3,566
Capitalized product development costs 27,850 11,292
Prepaid expenses and other current assets 6,570 4,634
--------- ---------
Total current assets
175,350 76,988
Capitalized product development costs 809 -
Property
and equipment, net 15,470 13,272
Goodwill
39,533 33,464
Other assets 11,155
1,725
--------- ---------
Total assets
$242,317 $125,449
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts
payable $6,673 $5,413
Accrued compensation and related benefits
5,183 3,674
Accrued royalties 3,493 2,961
Accrued selling and marketing 3,525 2,016
Current portion of long-term
debt 3,333 -
Other accrued liabilities 11,249
12,255
--------- ---------
Total current
liabilities 33,456 26,319
Long-term debt
10,278 -
Due to related parties - 12,402
Deferred income taxes 6,773 5,460
Other noncurrent liabilities
340 1,219
Redeemable convertible preferred stock, Series D,
redeemable at $4,460 and $35,000 at December 31,
2004 and 2003
4,453 32,156
Stockholders' equity:
Common stock
879 588
Additional paid-in capital 392,177 244,963
Accumulated deficit (190,612) (170,667)
Accumulated translation adjustment
(1,420) (919)
Deferred compensation (4,379)
(347)
Treasury stock (9,628) (25,725)
--------- ---------
Total stockholders' equity
187,017 47,893
--------- ------
---
Total liabilities and stockholders' equity $242,317 $125,449
========= =========
Revenues by Platform
(In thousands)
Three-Months Ended ------------
--------------------------------------------------------
Platform
2004 2003
-------- ------
--
Sony PlayStation 2 $45,583 $18,033
Microsoft Xbox
28,666 8,081
Nintendo GameCube
2,143 2,015
Nintendo Game Boy Advance 66 1,288
Other
769 682
-------- --------
Total Revenues $77,227
$30,099
======== ========
Revenues by Platform
(In thousands)
Twelve-Months Ended --------------------------------------------------------------------
Platform
2004 2003
--------- --------
Sony PlayStation 2 $97,299
$53,292
Microsoft Xbox 54,889 22,804
Nintendo GameCube
4,764 8,068
Nintendo Game Boy Advance
293 4,713
Other 4,350 3,647
--------- --------
Total Revenues
$161,595 $92,524
=========
========
trading top
Shortly thereafter, Taj Systems entered the online gaming
industry with the acquisition
of Costa Rica-based LoboGaming Corporation, a
software development company specializing in gaming
, with a concentration
in Asian card games. Taj Systems subsidiary LoboGaming
develops complete
online gaming systems offering operators a turn key
solution including software, technical support
, and customer service. Information concerning potential factors
that could affect the Company is
detailed from time to time in the
Company's reports filed with the Securities and Exchange Commission
.
(Nasdaq: ADSK), today announced that leading game developer and publisher
Midway has adopted
Autodesk 3ds Max(R) animation software for use in its
next-generation games production. As a result
, customers turn ideas into competitive advantage by
becoming more productive, streamlining project
efficiency, and maximizing
profits.com.,
in the USA and/or other countries.2 million, up 156%
from $30. Net income was $17.6 million or $0.0 million due to a settlement that reduced
liabilities
to Midway's former parent, WMS Industries Inc.com for independent publishers with more than one
reviewed product; and,
Three titles surpassed the one million units shipped milestone
(worldwide) during the fourth quarter: Mortal Kombat:
Deception, NBA Ballers,
and Midway Arcade Treasures.9 million, compared with a net loss of $115. The loss applicable to common
stock was $24.8 million of charges relating to the writedown of
capitalized product development costs;
-- $5.0 million of other income due to a settlement that reduced
liabilities to Midway's
former parent, WMS Industries Inc. Zucker. In the first months of 2005 we have already taken two
important
steps in this direction through our arrangement to license
Unreal Engine 3. Interested parties may
also access the live
call on the Internet at www.
Additionally, a replay of the call will be available
for twelve months
on the Internet via www.com is not an endorsement of
that site. (the
"Company
") based on currently available information that involve risks
and uncertainties.
Consolidated Statements of Operations
(In thousands, except per share amounts
)
Three-Months Ended Twelve Months Ended
December 31, December 31,
-------------------- ----
---------------
2004 2003 2004 2003
-------- -------- --------- --------
Revenues $77,227
$30,099 $161,595 $92,524
Cost of sales:
Product costs
and distribution
26,904 14,311 62,742 47,206
Royalties and
product
development
(1) 14,557 19,646 41,275 66,099
-------- --------
--------- --------
Total cost of sales 41,461 33,957 104,017 113,305
-------- -------- --------- --------
Gross profit (loss) 35,766
(3,858) 57,578 (20,781)
Research and
development expense 5,963 7,206
25,621 (2) 22,809
Selling and marketing
expense 13,142 12,546 41
,159 35,044
Administrative expense
(3) 4,946 3,733 15,949
(4) 27,688 (5)
Restructuring and other
charges (6) 21 595 (106
) 9,653
-------- --------- --------- ----------
Operating income
(loss) 11,694 (27,938) (25,045) (115,975)
Interest income 505 119
1,267 751
Interest expense (338) (25) (1,248) (70)
Other
income, net (7) 6,098 409 6,395 1,331
-------- -
-------- --------- ----------
Income (loss) before
income taxes 17,959 (27,435
) (18,631) (113,963)
Provision for income
taxes 329 328
1,314 1,264
-------- --------- --------- ----------
Net income
(loss) 17,630 (27,763) (19,945) (115,227)
Preferred stock
dividends:
Distributed
64 501 1,884 1,455
Imputed (8) 1 301
2,915 1,252
-------- --------- --------- ----------
Income
(loss) applicable
to common stock $17,565 $(28,565) $(24,744) $(117,934)
======== ========= ========= ==========
Income (loss) per share
of common
stock:
Basic $0.52) $(0.19 (9) $(0.3 million of
charges incurred
under the terms of the Company's severance
agreement with Mr. In
October 2004, we entered
into an agreement with the plaintiff to
settle all related claims. During the twelve-months ended
December
31, 2003, we recorded a $2.0 million estimate for a loss
contingency related
to this matter. Nicastro ceased to serve as Chairman of
the Board of the Company.5
million
of charges incurred under the terms of the Company's
severance agreement with Mr.5 million due
to its former
parent, WMS Industries Inc.0 million related to the
settlement of these
liabilities.
(8) Imputed preferred stock dividends for the twelve-months ended
December
31, 2004 include $2. 31, Dec.games top
PRESS RELEASE Taj Systems to Begin Trading Under New Ticker Symbol TJSS
The new name of the company is Taj Systems, Inc.
(OTC: TJSS) and effective Monday, October 24th
the company will begin
trading under its new ticker symbol TJSS.
A controlling interest in
Taj Systems was acquired in September of 2005 by
Senticore, Inc. These
forward-looking statements
may be impacted, either positively or
negatively, by various factors. The decision to advance its
use of
3ds Max software comes as the company wraps up an intensive review of tools to
drive future
development.
"We're very happy that, after carefully evaluating the power and long-term
value
of different software packages, Midway is choosing Autodesk 3ds Max
software as it launches into
production of its first next-generation game
titles," said Michel Kripalani, Games Industry Manager
, Autodesk Media and
Entertainment."
Midway will be debuting its latest games lineup at E3
May 18-20, 2005, at
the Los Angeles Convention Center in Petree Hall, Booth 4001. Autodesk will
be demonstrating 3ds Max, the most installed 3D animation software tool used
worldwide, at E3
, in the Concourse Hall, Suite 5018. is wholly focused on ensuring that great ideas are turned
into
reality.
Founded in 1982, Autodesk is headquartered in San Rafael, California. For
additional
information about Autodesk, please visit http://www.g. The Company also provided
revenue and earnings
guidance for the quarter ending March 31, 2005
and year ending December 31, 2005.
FOURTH QUARTER
RESULTS
Revenues for the 2004 fourth quarter were $77.19 per diluted share in the 2004 fourth
quarter, compared with a 2003 fourth quarter loss applicable to common
stock of $28.9 million
of charges related to the
writedown of capitalized product development costs. The net
loss was
$19.2 million in
the prior year.9 million or $2.43 per share in the prior year. The results for
the
year ended December 31, 2004 include:
-- $9.
-- $2.5 million of charges associated with
the departure of a
senior executive; and
-- $2. Zucker.
In addition to the progress we
made in improving our operations, we
also made several strategic acquisitions and partnerships that
strengthened our product development capabilities, brought us key
franchise content and extended
our reach into new markets, such as PC
games," added Mr.
The Company expects to release Mortal
Kombat: Deception for GameCube
and NARC for PlayStation 2 and Xbox in North America during the
quarter
.
CONFERENCE CALL
Midway Games Inc.m. EST today, Monday,
February 28, 2005.com.
Following
its completion, a replay of the call can be accessed until
March 1 at 4:45pm EST, by dialing 800
/633-8284 or 402/977-9140
(international callers). The information on that site has been prepared
by third
parties, and Midway does not monitor, endorse or have any
responsibility for its content
.34) $(2. Fedesna ceased to serve as executive
vice president - product development of the Company
. As a result of this
settlement, we reduced administrative expense during the
twelve-months
ended December 31, 2004 by $1.
(4) During June 2004, Neil D.
(5) During May 2003, Mr.
Nicastro ceased to serve as chief executive
officer, president and chief operating officer of
the Company. As
a result of this event, administrative expense for the
twelve-months ended
December 31, 2003 included an additional $9. Imputed preferred stock
dividends for the twelve
-months ended December 31, 2003 include
$0.5 shares of Series B redeemable
preferred stock
during May 2003.3 million in accordance with
applicable accounting standards.kombat card
(OTC BB: SNIO)
, a publicly traded holding company based in
Hollywood, FL.
The purpose of the company's recent
name change is to reflect the focus of
its new management group, target market, and newly implemented
business
plan as a software development company. SAN RAFAEL, Calif. "Midway has been a long-time
3ds Max customer and this deal
represents a re-commitment to a platform that has proven to be successful
and
truly helps them realize their ideas for innovative game development. Autodesk's solutions
help
customers create, manage, and share their data and digital assets more
effectively.
NOTE:
Autodesk and 3ds Max are registered trademarks of Autodesk, Inc.Midway Reports Q4 Net Income of $17
.6 Million and Diluted EPS of $0.19; 2004 Full Year Revenues Rise 75%
The 2003
fourth quarter
results included $5.6 million,
up 75% from $92.2 million of charges relating to the writedown of
capitalized product development costs;
-- $9.
"Our 2004 fourth quarter results cap
a year of progress at Midway
which has positively repositioned the Company for the future,"
commented
President and Chief Executive Officer, David F.
OUTLOOK
For the year ending December 31
, 2005, Midway expects revenues to
grow approximately 40% to $225 million and expects a net loss of
approximately $38 million including approximately $2 million of stock
options expense in the second
half of the year. The benefits of
continued revenue growth will be offset in 2005 by investment in
titles releasing in 2006 and 2007 for next generation consoles. Although we expect to grow revenues
approximately 40% in 2005,
we are even more excited about our 2006 product lineup when we expect
to see results from our investment in next generation console
development, major PC franchise
launches and licensed content from our
Warner agreements," added Mr.com or at
www.
This
press release contains forward-looking statements concerning
future business conditions and the outlook
for Midway Games Inc.20 (9) $(0.43)
======== ======== ========= ========
Weighted average number
of shares:
Basic 85,720 54,471 72,421
48,486
======== ======== ========= ========
Diluted
89,253 54,471 72,421 48,486
======== ========
========= ========
(1) Royalties and product development costs include charges relating
to the writedown of capitalized product development costs of $5.6
million and $5.2
million during the twelve-months ended December 31, 2004 and 2003,
respectively. As a result
of this event, research and development expenses for the
twelve-months ended December
31, 2004 include $1. As a result of this event,
administrative expense for the twelve-months
ended December 31,
2004 includes an additional $0.3 million of charges. Nicastro. As a result
, the
Company has reflected other income of $5.
MIDWAY GAMES
INC.
Consolidated Balance Sheets
(In thousands
)
Dec.mortal games
Midway will be using 3ds Max 7.com/cgi-bin
/prnh/20050415/SFF034LOGO )
Midway has been a 3ds Max software customer for years, creating scores
of
successful game titles, including AREA 51(R) and the upcoming Mortal
Kombat(R): Shaolin Monks
(TM) and Blitz: The League(TM), out of its Chicago,
San Diego, Austin and Los Angeles studios.
About Autodesk
Autodesk, Inc. With six million users, Autodesk is the world's leading
software
and services company for the building, manufacturing, infrastructure, media
and entertainment
, and wireless data services fields.autodesk.
Contact: Kevin G.1 million in the 2003 fourth
quarter.8 million.6 million or $0.52 per diluted share.5 million in the year ended December 31, 2003
.7 million
or $0.3 million of accelerated imputed preferred stock dividends
which were recorded
upon the conversion of 4,304 shares of
preferred stock to common stock during June - $1. "By
focusing
on improving our key operating functions such as product
development and marketing, Midway produced
much higher quality games
and generated much better visibility and demand for our games in 2004.
We
believe that further strengthening these functions will lay the
foundation for successfully
navigating the upcoming console transition
while expanding and diversifying our revenue base to achieve
the size
and scale necessary to generate consistent and significant profits,"
remarked Mr.0 technology
for next generation console development
and through our multi-product agreements with Warner Brothers
to bring
a broad portfolio of Cartoon Network programming to the videogame
market. The conference
call number is (706) 679-7522;
please call five minutes in advance to ensure that you are connected
prior to the presentation. The access code for the replay is 21231842.com
Midway Games Inc
.
MIDWAY GAMES INC.9 million during the three-months ended December
31, 2004 and 2003, respectively; and $9.
(2) During June 2004, Kenneth J. for $1.trading kombat
MRLD Holdings, Inc. (OTC: MRHD) has undergone
a name and symbol change.
Safe Harbor Statement:
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward
-looking statements.
5 to bring
game players titles with new levels of dimensionality, artistic
quality and
fun. As content becomes more complex
and workflow and creative management prove more
challenging, companies look
not only to the market-proven 3ds Max modeling, animation and rendering
toolset, but also to Autodesk's commitment to providing solid cost of
ownership benefits through
engineering advancements, re-investment in R+D, and
progressive subscription service advantages.
Clark, 415-547-2457
Email: kevin.clark@autodesk.com
(NYSE:MWY) today announced
results of operations for the fourth
quarter and year ended December 31, 2004.6
million in the
2004 fourth quarter, compared with a 2003 fourth
quarter net loss of $27. Income applicable to common
stock
was $17. The 2004 fourth
quarter results include $5.6 million of charges related to the
writedown of capitalized product development costs which were offset
by other income of $5.
Other key operating and financial highlights include:
Midway released two new titles in North
America: Mortal
Kombat: Deception for PlayStation 2 and Xbox, and Midway
Arcade
Treasures 2 for PlayStation 2, Xbox and GameCube;
On November 30, 2004 Midway announced it acquired
Paradox
Development, the Moorpark, California-based studio working on
Midway's
upcoming new videogame, Mortal Kombat: Shaolin Monks.
The results for the year ended December
31, 2003 included:
-- $33.7 million of restructuring and other charges related to the
consolidation
of California product development and marketing
operations;
-- $9.0 million of administrative
expenses due to reserves
established for a litigation matter. For
the quarter ending March 31
, 2005, the Company expects revenues of
approximately $14 million and a net loss of approximately
$18 million.
"We look to build on the progress we made in 2004 by continuing to
pursue major franchise
products and by continuing to build
industry-leading product development and marketing organizations
. Zucker. is hosting a conference call and simultaneous
web cast open to the general public at 4:45
p.investor.fulldisclosure. Please log-on fifteen minutes in advance to
ensure that you are connected
prior to the call's initiation.investor. Midway videogames are available
for play on major videogame
platforms including the PlayStation(R)2
computer entertainment system, Xbox(TM) video game system
from
Microsoft, and Nintendo GameCube(TM) and Game Boy(R) Advance.
Our reference above to
Gamerankings. The Company's actual results could differ
materially from those anticipated in the
forward-looking statements as
a result of these risks and uncertainties, 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, the upcoming console
platform
transition and other technological changes, dependence on
major platform manufacturers and other
risks more fully described
under "Item 1. Business - Risk Factors" in our Annual Report on Form
10
-K for the year ended December 31, 2003, and in the more recent
filings made by the Company with the
Securities and Exchange
Commission.52) $(0.8 million and $33.
(3) We were the defendant
in an intellectual property infringement
case involving characters appearing in one of our videogames
.5 million.trading games
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