LOS ANGELES, Calif., Nov. 18, 1998 (PRIMEZONE) -- Showscan Entertainment Inc. (OTC BB:SHOW) today reported a net loss for the second quarter ended September 30, 1998 of ($325,000), or ($0.06) per share, on revenues of $2,668,000, compared with a net loss for the comparable period a year ago of ($922,000), or ($0.18) per share, on revenues of $2,472,000.
For the six month period ended September 30, 1998, the company narrowed its net loss to ($1,536,000), or ($0.28) per share, on revenues of $4,430,000, from a net loss a year earlier of ($2,611,000), or ($0.46) per share, on revenues of $3,711,000.
Dennis Pope, President and Chief Executive Officer, said "We are pleased with our progress in reversing the course of Showscan Entertainment. Earlier this year we stated the strategy being put in place in order to return the company to profitability and we are continuing to implement that strategy.
"Moreover, we recently renegotiated and extended the payment dates of an outstanding $1 million promissory note which was due in full on November 15, 1998 to a schedule of monthly payments continuing through March 31, 1999.
"While there remains a very difficult and challenging path ahead, we believe that it is the right path, negotiated with the correct strategy and the path that has the potential to return Showscan to profitability."
Showscan Entertainment is an international leader in the production and exhibition of exciting movie-based entertainment attractions shown in large screen, special format theatres worldwide. Showscan's simulation and specialty theatres are open or under construction in 24 countries around the world, located in theme parks, motion multiplexes, expos, world's fairs, resorts, shopping centers, casinos, museums and other tourist destinations.
See Showscan at WWW.SHOWSCAN.NET.
NOTE: Except for the historical information contained herein, the statements made in this release constitute forward-looking statements that involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward looking statements, including the number of timing of sales of Showscan attractions, the development and acceptance of new products, the impact of competition on the Company's products and pricing, the Company's ability to locate, finance and operate theatres for the Company's account, and the other risks detailed from time to time in the Company's reports on file at the Securities and Exchange Commission.
SHOWSCAN ENTERTAINMENT INC.
Condensed Consolidated Statements of Operations
(Dollars in Thousands Except Per Share Information)
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
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(Unaudited) (Unaudited)
Revenues:
Film licensing and production services $ 924 $ 1,192 $ 1,550 $ 2,131
Equipment sales and related services 1,744 1,280 2,880 1,580
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2,668 2,472 4,430 3,711
Costs of revenues 1,330 1,382 2,610 2,117
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Gross profit 1,338 1,090 1,820 1,594
Costs and expenses:
General and administrative expenses 1,314 1,576 2,584 3,166
Depreciation and amortization 118 190 288 389
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1,432 1,766 2,872 3,555
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Operating loss (94) (676) (1,052) (1,961)
Other income (expense):
Equity in net operations of O&O Theatres (55) (202) (113) (364)
Other income, including interest 39 23 58 41
Interest and other expenses (215) (137) (429) (327)
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(231) (316) (484) (650)
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Net loss $ (325) $ (992) $(1,536) $(2,611)
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Basic and diluted net loss per common
share (Note 5) $ (.06) $ (.18) $ (.28) $ (.46)
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