LOS ANGELES, Calif., Feb. 16, 1999 (PRIMEZONE) -- Showscan Entertainment Inc. (OTC: SHOW) today reported a net loss for the fiscal third quarter ended December 31, 1998 of ($1,365,000), or ($0.24) per share on revenues of $1,336,000, compared with a net loss of ($3,264,000), or ($0.58) per share, on revenues of $3,425,000 in the comparable year earlier period.
For the nine months ended December 31, 1998, the company reported a net loss of ($2,901,000), or ($0.51) per share, on revenues of $5,767,000, compared with a net loss a year ago of ($5,875,000), or ($1.04) per share, on revenues of $7,136,000.
Dennis Pope, President and Chief Executive Officer, said "We are pleased to see the strategy we developed and implemented a year ago take hold and yield the results we anticipated. We will continue to build on that strategy as we look toward improvements in the fourth quarter and for the year. As we move forward, our foundation will strengthen."
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 picture multiplexes, expos, world's fairs, resorts, shopping centers, casinos, museums and other tourist destinations.
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 but not limited to the number or 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 for per share information)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1998 1997 1998 1997
Revenues:
Film licensing and
production services $ 767 $ 791 $ 2,317 $ 2,922
Equipment sales and
related services 569 2,634 3,450 4,214
1,336 3,425 5,767 7,136
Costs of revenues 906 3,889 3,516 6,006
Gross profit 430 (464) 2,251 1,130
Costs and expenses:
General and administrative
expenses 1,425 2,339 4,009 5,505
Depreciation and amortization 166 190 432 579
1,591 2,529 4,441 6,084
Operating loss (1,161) (2,993) (2,190) (4,954)
Other income (expense):
Equity in net operations
of O&O Theatres (15) (104) (149) (468)
Other income, including interest 5 23 62 64
Interest and other expenses (194) (190) (624) (517)
(204) (271) (711) (921)
Net loss $ (1,365) $ (3,264) $ (2,901) $ (5,875)
Basic and diluted net loss per
common share $ (0.24) $ (0.58) $ (0.51) $ (1.04)
CONTACTS: Steven D. Stern
Pondel Parsons & Wilkinson
(310) 207-9300