Swing! Entertainment Media AG
Swing! Entertainment english
9-month result of Swing! Entertainment Media AG – Outlook
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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9-month result of Swing! Entertainment Media AG – Outlook
Kaarst, 31.05.2001 – Swing! Entertainment Media AG announces its result as at
31.03.2002 for the first nine months of the current fiscal year according to US
GAAP as follows: Compared to the same period of the previous year, turnover
dropped by 21% from EUR 11.94m to EUR 9.39m. Earnings before interest and taxes
(EBIT) decreased from EUR 1,151 TSD to EUR -1,816 TSD and earnings per share
from EUR 0.18 to EUR -0.29.
Up to now the fiscal year 2001/2002 has been heavily affected by a significant
increase in production costs compared to the previous year. This increase mainly
results from unscheduled depreciation of intangible assets and the cancellation
of a development project. In the past third quarter total production costs
amounted to EUR 3.41m, thus exceeding the achieved turnover of EUR 2.31m. In the
first nine months, production costs including the aforesaid special factors
consequently amounted to a total of EUR 8.21m, equalling 87% of turnover against
62% in the previous year.
As at the 31.03.2002 cut-off date, liquid funds amounted to EUR 74,990; cash
flow from operations reached EUR 3,136,690. As at 29.05.2002 the liquid funds
amounted to EUR 410,165.
In the long run, the company expects a lastingly positive business development.
Even though new investments have to be deferred due to the lack of cash flow
resulting from the current product postponements, the next fiscal year is to
continue the course of the successful previous years. Where new investments are
made later than scheduled, consequentially delaying future sales, this will be
partly compensated by the current product postponements to the next fiscal year.
Especially the “Shadowbane” product and the multi-platform title “Enclave”,
which will be distributed in the US by Vivendi Universal, promise to find a
ready market. In addition to this, distribution agreements including sales
guarantees have been concluded in the last few months. A more detailed forecast
for the next fiscal year will be announced in connection with the annual report
of the current fiscal year.
end of ad-hoc-announcement (c)DGAP 31.05.2002
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
In the past quarter, the company was able to deliver three European
publications. As at 31.03.2002, the intangible assets amounted to EUR 11.9m.
They represent the company’s investments in future sales carriers.
Overall the first nine months went negatively for the company. The third quarter
lagged far behind expectations. The main reasons for this were the generally
slow software sales for Nintendo Gameboy Advance, lagging far behind market
expectations, a lack of repeat orders for already published products and the
cancellation of a project. This led to extraordinary depreciation of intangible
assets in the amount of almost EUR 2m.
As already announced before, the fourth quarter will see a negative result as
well, as several products cannot be finished in time for a release in this
fiscal year. In particular cases these delays could also result in the
cancellation of projects, as finalisation seems to be unsure due to insufficient
performances of the contract partners.
The company’s liquidity has to be regarded as strained. This mainly resulted
from overdue receivables and substantial product postponements. Furthermore the
awarding of licences to the USA and sales to Australia with regard to already
completed products could not yet be realised as planned due to the generally bad
market situation for Nintendo Gameboy Advance products. Mainly through new
products to be delivered in Europe and partly adapted terms of payment, the
company expects to receive money in June and July amounting to a total of at
least EUR 1.4m.
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Swing! Entertainment Media AG is the first German computer game publisher at the
Neuer Markt. Including development, license trade and marketing of own and
licensed computer games, the activities of Swing! AG comprise those segments of
the value-added chain in digital entertainment software with the highest
margins.
Contact:
Swing! Entertainment Media AG, Industriestr. 8, D-41564 Kaarst
Investor Relations:
Marion Morell
Tel: +49 (0)2131 4066-253
Fax: +49 (0)2131 4066-260
Email: ir@swing-ag.de
ISIN: DE0005474407 // WKN: 547 440
Exchange symbol SGV; Bloomberg SGV GR; Reuters SGVG.F
Neuer Markt, Frankfurter Stock Exchange
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WKN: 547440; ISIN: DE0005474407; Index:
Listed: Neuer Markt in Frankfurt, Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München und Stuttgart
311753 Mai 02
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