After reporting a $25.4 million loss in its last quarter, the troubled publisher reveals it must find new financing by August.
Today, Acclaim released its earnings for the financial year ending March 31, 2004. The figures were grim: The company reported a net loss of $56.4 million for its 2004 fiscal year, with net revenues down $67.4 million from the previous year ($142.7 million versus $210.1 million).
While the FY2004 net loss was slightly less than that of FY2003"s $84.8 million shortfall, it contained a disturbing trend. Nearly half Acclaim"s losses--$25.4 million--were during the quarter that ended March 31, 2004. The shortfall also came despite the fact that the company raised $15.0 million by selling off convertible subordinate notes, short-term bonds convertible to stock, 16 percent of which it has since defaulted on.
Acclaim has also borrowed $5 million in short-term loans from GMAC Commercial Finance, General Motor"s investment-banking arm. In May and June, Acclaim negotiated a series of loan extensions with GMAC, which will now expire on August 4. After that date, GMAC will no longer lend Acclaim any more capital, meaning it must find an alternate source of financing.