3DO announced today that founder and Chief Clown, Trip 'Homer J' Hawkins has made a $3 million loan that will meet the short-term capital needs of the company, which expects to return to profitability in the quarter ending March 31, 2003.
In addition, the Company has obtained a conditional waiver from its revolving credit facility lender regarding existing defaults through October 2002. The Company also announced today updated financial guidance for the Fiscal Years ending March 31, 2003 and March 31, 2004.
Another GREAT Game from 3DO... Yawn
The Company outperformed consensus analyst guidance in the First Quarter of Fiscal 2003, but will fall short in the Second and Third Quarters, with combined quarterly revenue of approximately $11-$12 million versus consensus analyst estimates of $19 million.
"The big picture remains the same," said Homer J Hawkins. "Calendar 2002 is all about cash management and product development for calendar 2003. We have now made it 75% of the way through this transition calendar year towards a strong recovery that begins next quarter. The new loan enables the Company to meet its short-term cash needs. And now that Nasdaq has given us a clean bill of health, I believe that our long-term access to capital is greatly improved.
Meanwhile, indications are for a very strong hardware market this holiday season that will significantly improve software opportunities in calendar 2003 and beyond."