Revenues for the fiscal second quarter were $22.9 million, an increase of 11% compared to $20.7 million in the prior year’s fiscal second quarter. Pro forma consolidated net loss in the quarter before warrant expense was $15.2 million, or a loss of $0.40 per share, compared to a loss of $5.9 million, or $0.18 per share in the same quarter last year. On an as-reported basis, the net loss was $16.7 million, or $0.45 per share. Revenues for the fiscal first half were $30.8 million, compared to $33.8 million in the prior fiscal year. As-reported net loss for the first six months of the fiscal year was $43.0 million, or $1.16 per share, compared to $12.7 million, or $0.44 per share, for the same period last year.
Despite ongoing industry pricing pressure and market slowness prior to the introduction of PlayStation(R) 2, we were pleased with the quarter and our revenue and the operating loss were in line with our expectations, said Trip Hawkins, the Company’s chairman and chief executive officer. Even more rewarding, and a better measure of our success, is the acceptance of our products at retail. According to NPD, consumers have moved 3DO into the top 10 publishers of console titles based on revenue for the first eight months of 2000. Last year, we were number 18. Our retail sales of PlayStation titles increased 92% during the first eight months of 2000, compared to an industry average increase of 12%. We expect September’s shipment of Army Men(R) Sarge’s Heroes(TM) 2 on Nintendo(R) 64 to join Army Men — Air Combat(TM) in the top 10 titles for the Nintendo 64. Finally, we have risen from #28 for Game Boy(R) Color publishers to #14 this year, the biggest one-year jump of any company on GBC.
During the quarter, the company released four major new products, including Air Combat and Sarge’s Heroes 2 on N64(R), and Army Men: Land, Sea, Air, and World Destruction League(TM): Thunder Tanks(TM) for the PlayStation game console.
We are looking forward to the second half of the year, with a strong slate of product introductions, including six or more PlayStation 2 titles. We believe that the shipment of PlayStationOne consoles will likely help revitalize the original PlayStation platform, and we are well positioned with over eight titles under development. We are also looking forward to growth in our Game Boy Color business, where we plan to introduce several titles. Finally, we have strong offerings for the PC, notably Legends of Might and Magic(TM) as well as four new installments of the well received Heroes(TM) Chronicles line, continued Hawkins. We expect margins to improve as we enter the second half, due to decreases in the price pressures we have experienced in the first half, and a shift in mix to higher margin products. We expect revenue for our fiscal third quarter to exceed $50 million primarily as a result of the introduction of over ten new titles, which could allow the company to approach break even for the quarter. We remain optimistic on the fourth quarter and we hope to show improvements in operating income compared to our last fiscal year.
