<strong>[Company -> Update]</strong>
Per this <A href="http://www.sec.gov/Archives/edgar/data/ ... >report</a>, <A href="Http://www.interplay.com">Interplay</a> ended the last quarter with a heaping <b>$7,000</b> in the bank, and <b>Herve Caen</b> is thinking of filing for protection from the creditors, selling or merging the company, and all kinds of other fun things.
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<br>So, basically, <i>end is nigh</i> and all that.
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<br>Spotted this at <a href="http://www.nma-fallout.com">No Mutants Allowed</a>.
Interplay hosed
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Saint_Proverbius
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Spazmo
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This makes me giggle uncontrollably, especially since FOBOS will probably make less than $7,000.
I also like Caen's KONTINGENCEY PLAN!:
(ii) I don't think any company stupid enough to buy Interplay could possibly have enough in the bank to buy anything more than a bagel.
(iii) At this point, they should seek protection from their own employees. That cheap mexican labour may look like a deal, but when they don't get they five cents per diem, they get ANGRY! Watch out, Herve! Chucky's a-comin', so you'd better RUN LIKE HELL!
I also like Caen's KONTINGENCEY PLAN!:
(i) Liquidate your assets--well, IPLY has already pissed away ever franchise it's ever had and I don't think anyone would want any part of BIS now that all the stars are gone, not to mention crap like Mayhem Action Studios or whatever it is. Maybe they can sell the coffee machines at a flea market.Financial whizzes wrote:If we are unable to substantially reduce our working capital needs, are unsuccessful in collecting amounts owed to us, fail to adequately exploit our game assets, or otherwise do not receive sufficient financing we may pursue a number of actions, including, but not limited to, (i)liquidation of any or all of our assets, (ii) sale or merger of the Company and/or (iii) seek protection from our creditors.
(ii) I don't think any company stupid enough to buy Interplay could possibly have enough in the bank to buy anything more than a bagel.
(iii) At this point, they should seek protection from their own employees. That cheap mexican labour may look like a deal, but when they don't get they five cents per diem, they get ANGRY! Watch out, Herve! Chucky's a-comin', so you'd better RUN LIKE HELL!
Last edited by Spazmo on Sat Nov 15, 2003 4:32 am, edited 3 times in total.
Financial report
Please note, that when you reference that, it indicates the number is in thousands.
7,722 x 1000 = 7, 722,000
A company the size of Interplay would have to close down immediately if they only had 7K in the bank.
They are operatiing at a nice loss though, I must say.
7,722 x 1000 = 7, 722,000
A company the size of Interplay would have to close down immediately if they only had 7K in the bank.
They are operatiing at a nice loss though, I must say.
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InfinityBall
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Interplay is in a finanicial death spiral. Their revenues are falling because they only released one gold master in 3Q, 2003, and sales from their back catalogue of older games is declining because they have fewer games going into the back catalogue because of their downsizing. As noted they are looking at cutting titles that don't meet profit projections, but yet they need titles to generate cash and cover fixed overhead. They're damned if they do and damned if they don't.
Current assets are only $5.3MM, total assets are $7.7MM, while total liabilities - all current - are $23.6MM. There is no way they are coming back from this - all they are doing is running out the clock. It looks like the only thing that kept them afloat last year was the gain on sale of Shiny for $28.7MM - apparently they have already run through that. They also say that this year they sold the rights to "Run Like Hell" for $15MM, which is most of their revenue for this year in looking at the numbers ytd. So, with no more sources of quick cash, I don't see them lasting much longer, which they pretty much admit to in their filing:
As of September 30, 2003, we had a working capital deficit of $18.3 million, and our cash balance was approximately $7,000. We anticipate our current cash reserves, plus our expected generation of cash from existing operations, will only be sufficient to fund our anticipated expenditures, including payroll, into the fourth quarter of fiscal 2003. The Company expects to receive certain funds in November 2003. However, if such funds are not received, the Company will not be able to meet its current cash obligations. We expect that we will need to substantially reduce our working capital needs and/or raise additional funds. We entered into the August 2002 distribution agreement with Vivendi, which accelerates cash collections through non-refundable minimum guarantees. If we are unable to substantially reduce our working capital needs, are unsuccessful in collecting amounts owed to us, fail to adequately exploit our game assets, or otherwise do not receive sufficient financing we may pursue a number of actions, including, but not limited to, (i) liquidation of any or all of our assets, (ii) sale or merger of the Company and/or (iii) seek protection from our creditors.
These conditions, combined with our historical operating losses and deficits in stockholders' equity and working capital, raise substantial doubt about our ability to continue as a going concern.
The filing is interesting reading. Their finances are all screwed up. IP's majority shareholder is Titus - and IP's European distributor is Avalon, a Titus subsidiary. But Avalon is in financial difficulty and has been unable to make payments to the developer of "Galleon" which IP was producing and Avalon was supposed to distribute - so IP has had to take up the slack. Subsequently, Avalon filed for the UK equivalent of bankruptcy. So Titus obviously can't cover Avalon's debts, and ends up not covering IP since Avalon owes IP - which screws Titus since they own the majority of IP. So Titus ends up screwing itself, LOL!
What I can't figure out is what happened to the cash they got from the sale of Shiney. In looking at the statement of cash flows, they got $33.1MM for Shiney. It's clear they used that to pay off some debt, but there is also $21.9MM in "Advances" they used cash for. Wonder what that was for? That seemed to be their largest use of cash, but I can't figure that out.
Anyway, lots of interesting reading if you're interested in the game industry. Too bad IP is imploding. With only two releases planned in 4Q, and maybe one in 1Q, I don't see much cash coming in to keep them going
Grifman
Current assets are only $5.3MM, total assets are $7.7MM, while total liabilities - all current - are $23.6MM. There is no way they are coming back from this - all they are doing is running out the clock. It looks like the only thing that kept them afloat last year was the gain on sale of Shiny for $28.7MM - apparently they have already run through that. They also say that this year they sold the rights to "Run Like Hell" for $15MM, which is most of their revenue for this year in looking at the numbers ytd. So, with no more sources of quick cash, I don't see them lasting much longer, which they pretty much admit to in their filing:
As of September 30, 2003, we had a working capital deficit of $18.3 million, and our cash balance was approximately $7,000. We anticipate our current cash reserves, plus our expected generation of cash from existing operations, will only be sufficient to fund our anticipated expenditures, including payroll, into the fourth quarter of fiscal 2003. The Company expects to receive certain funds in November 2003. However, if such funds are not received, the Company will not be able to meet its current cash obligations. We expect that we will need to substantially reduce our working capital needs and/or raise additional funds. We entered into the August 2002 distribution agreement with Vivendi, which accelerates cash collections through non-refundable minimum guarantees. If we are unable to substantially reduce our working capital needs, are unsuccessful in collecting amounts owed to us, fail to adequately exploit our game assets, or otherwise do not receive sufficient financing we may pursue a number of actions, including, but not limited to, (i) liquidation of any or all of our assets, (ii) sale or merger of the Company and/or (iii) seek protection from our creditors.
These conditions, combined with our historical operating losses and deficits in stockholders' equity and working capital, raise substantial doubt about our ability to continue as a going concern.
The filing is interesting reading. Their finances are all screwed up. IP's majority shareholder is Titus - and IP's European distributor is Avalon, a Titus subsidiary. But Avalon is in financial difficulty and has been unable to make payments to the developer of "Galleon" which IP was producing and Avalon was supposed to distribute - so IP has had to take up the slack. Subsequently, Avalon filed for the UK equivalent of bankruptcy. So Titus obviously can't cover Avalon's debts, and ends up not covering IP since Avalon owes IP - which screws Titus since they own the majority of IP. So Titus ends up screwing itself, LOL!
What I can't figure out is what happened to the cash they got from the sale of Shiney. In looking at the statement of cash flows, they got $33.1MM for Shiney. It's clear they used that to pay off some debt, but there is also $21.9MM in "Advances" they used cash for. Wonder what that was for? That seemed to be their largest use of cash, but I can't figure that out.
Anyway, lots of interesting reading if you're interested in the game industry. Too bad IP is imploding. With only two releases planned in 4Q, and maybe one in 1Q, I don't see much cash coming in to keep them going
Grifman
Re: Financial report
/me slaps odln018 across the face with this and points out to the solitary "7" in a particular column.odln018 wrote:Please note, that when you reference that, it indicates the number is in thousands.
7,722 x 1000 = 7, 722,000
A company the size of Interplay would have to close down immediately if they only had 7K in the bank.
Obsidian:
Now working on Fallout: New Undermountain!
They promise to spend only a year on this title - only a year less than the original Descent to Undermountain!
Now working on Fallout: New Undermountain!
They promise to spend only a year on this title - only a year less than the original Descent to Undermountain!
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Briosafreak
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^very well said , that was what caught my attention. But they can be an easier target this way too...InfinityBall wrote:I think you guys are missing the real story on that 10-q: not the low liquidity, but that they have negative equity. No one would buy them because they owe more than they're worth.
Holy Shit
Brios was right, there were consequences!
Seriously though... we all pretty much expected this; Interplay hasn't had anything but trouble and when they sold of Shiny and lost the D&D license, there was nothing in the pipeline expected to sell to the point where there'd be any shoring up of their fiscals.
I'm proposing getting a collection together and trying to buy the Fallout license before it goes to someone who isn't going to respect it.
Seriously though... we all pretty much expected this; Interplay hasn't had anything but trouble and when they sold of Shiny and lost the D&D license, there was nothing in the pipeline expected to sell to the point where there'd be any shoring up of their fiscals.
I'm proposing getting a collection together and trying to buy the Fallout license before it goes to someone who isn't going to respect it.
Dan Wood
Nothing like a slow-moving localized apocalypse to really make you think about proper data backup procedures.
Nothing like a slow-moving localized apocalypse to really make you think about proper data backup procedures.
to bad its going to suck and theyre only going to lose more money.
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Sol Invictus
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Looking at the amount 3DO sold their franchises for:
UbiSoft Holdings Inc. - "Might and Magic" and "Heroes of Might and Magic," - $1.3 million
Namco Hometek - "Street Racing Syndicate" - $1.515 million
JoWooD Productions "Jacked" - $90,000
Crave Entertainment "Army Men" - $750,000
Microsoft Corp. "High Heat Baseball." - $450,000
Fallout would be in the range of <estimated> $250,000 - $750,000
UbiSoft Holdings Inc. - "Might and Magic" and "Heroes of Might and Magic," - $1.3 million
Namco Hometek - "Street Racing Syndicate" - $1.515 million
JoWooD Productions "Jacked" - $90,000
Crave Entertainment "Army Men" - $750,000
Microsoft Corp. "High Heat Baseball." - $450,000
Fallout would be in the range of <estimated> $250,000 - $750,000
Thanks for the list. Though High Heat Baseball sold a hell of alot more copies than all of the Fallout games combined, and if F:BOS tanks as expected it should drive the price even lower.Piotr wrote:Looking at the amount 3DO sold their franchises for:
UbiSoft Holdings Inc. - "Might and Magic" and "Heroes of Might and Magic," - $1.3 million
Namco Hometek - "Street Racing Syndicate" - $1.515 million
JoWooD Productions "Jacked" - $90,000
Crave Entertainment "Army Men" - $750,000
Microsoft Corp. "High Heat Baseball." - $450,000
Fallout would be in the range of <estimated> $250,000 - $750,000
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InfinityBall
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Saint_Proverbius
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Re: Financial report
Please note this:odln018 wrote:Please note, that when you reference that, it indicates the number is in thousands.
7,722 x 1000 = 7, 722,000
A company the size of Interplay would have to close down immediately if they only had 7K in the bank.
They are operatiing at a nice loss though, I must say.
- Current Assets:
Cash ........................................ $ 7
Obviously they wouldn't have to close down with just $7k in the bank, because that's all they had at the end of September. If Interplay had $7M in the bank, we wouldn't even be having this conversation.
Well, that's been established. They're not getting sold, no one wants them.I think you guys are missing the real story on that 10-q: not the low liquidity, but that they have negative equity. No one would buy them because they owe more than they're worth
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