Acclaim Entertainment Inc, the games software publisher that scratched its way back from the brink of bankruptcy in the last couple of years, has reported third-quarter numbers that blew away Wall Street expectations. The Glen Cove, New York-based company posted net income of $5.7m, or $0.09 per share, when the consensus of analysts surveyed by First Call was for just $0.03 per share. The year-ago quarter saw a loss of $69.7m. Revenue for the quarter soared 75.8% to $73.2m, mostly buoyed by sales of the company’s sports titles. Acclaim said it is now reaping the benefits of its cost reduction initiatives, which have seen it restructure and consolidate administrative and operational functions and shed 115 jobs to save about $40m per annum. The company also announced the closing of its coin-operated unit in an effort to focus on its core home market. Gross revenues by platform were 50% to N64, 30% for PlayStation, and 18% for the PC and others. Gross margins were helped by Nintendo Ltd’s price reductions on N64 cartridges to third-party licensees, the company said. For the nine-month period, net income came in at $12.5m, or $0.22 per share, on revenue up 59.4% at $234.8m, compared to a net loss of $105.5m last year. First Call is looking for $0.04 per share next time.
