For the quarter ended March 31, 2001, net revenues totaled $12,263,708, compared with $20,699,519, reported for the first quarter ended March 31, 2000. Net income for the quarter was $5,289,493, or $0.40 per common share diluted, compared with net income of $9,329,999, or $0.71 per common share diluted for the first quarter of 2000.
Results for the first quarter were in-line with our expectations. Reduced merchandise licensing revenues for the quarter reflect Pokemon’s continued transition to a more stable worldwide brand. The property continues to demonstrate its popularity in the world market and maintains its position as the number one children’s network television program. As a result, we are optimistic that Pokemon will continue to make important contributions to our results in the foreseeable future, said Al Kahn, Chief Executive Officer of 4Kids Entertainment. ‘Pokemon 3,’ the latest film, was released in April, extending the property’s visibility and storyline throughout the U.S. children’s market and further supporting our licensing efforts. The film is slated to be released in Europe during the second quarter of 2001, added Kahn.
The Company continues to expand its presence in the children’s entertainment market through the acquisition of new property rights and the licensing of proprietary properties such Cubix: Robots for Everyone. Our recent acquisition of the merchandising and television rights to the successful Japanese property YU-GI-OH! for the world outside Asia builds on our strategy of acquiring and developing content for the children’s entertainment market.
This property, together with Cubix, Cabbage Patch Kids, Tama and Friends, Ultraman Tiga, Kinnikuman: The Ultimate Muscle and USHRA Monster Jam will create additional revenue streams for the Company, some of which will be recognized before the close of the fourth quarter of 2001.
The Company added that it continues to negotiate licensing agreements for Cubix: Robots For Everyone!, as well as promotional programs to support the property’s debut on Kid’s WB! later this year.
