Grow Biz International, recording $879,000 gain on sale of its 200-store Computer Renaissance (CR) chain, said 3rd-quarter net income rose to $1.2 million from $739,000 year ago as sales slipped to $9.1 million from $11.5 million. Grow Biz posted gain nearly year after agreement to sell chain to Hollis Technologies. Hollis had asserted claims against $1 million escrow account companies established in connection with sale of CR. Agreement was reached under which Hollis and Grow Biz received $400,000 and $600,000, respectively, of escrowed funds in exchange for Grow Biz dropping suit it had filed against Hollis. Downturn in revenue in quarter was largely result of sale of CR, which sold refurbished PCs. In quarter merchandise sales fell to $4.8 million from $6.7 million and royalties to $3.9 million from $4.1 million. Grow Biz operates variety of chains selling used products including 62-store Music Go Round.
Philips is adding 3 audio CD recorders to line in Europe, including 2 dubbing decks. Each has 3-CD changer and separate recorder drive. Top-shelf CDR820 ($500) has 4x recording, MP3 playback, Direct Line Recording function that makes bit-for-bit transfer, thereby preserving HDCD and DTS encoding.
Nintendo of America (NOA) said “nearly 600,000 units” of its GameCube console were sold in N. America over 15 days in which system has been on sale -- average of 27 per min. NOA Exec. Sales & Mktg. Vp Peter Main also took shot at competitor Microsoft, saying: “In short, although launching at retail 3 days following the Microsoft Xbox, it seems apparent that we have sold through to consumers more game consoles than they have even been able to deliver to retail outlets.”
EMachines agreed to pay PC supplier Trigem America $3.4 million as part of settlement and release agreement relating to OEM pact signed in Jan. 2000. Under new pact, eMachines can return defective product to Trigem, which is responsible for providing replacement parts. EMachines will handle nondefective returns and resell refurbished PCs that are consigned from Trigem. Among terms is that if nondefective products exceed 10% of those returned, then Trigem gets fee of $150 per unit for returns in excess of 10%. EMachines settlement comes as it seeks to its finalize sale to EM Holdings for $166 million, deal that is scheduled to close by year-end.
Sony Chmn. Norio Ohga was reported in stable condition and conscious in Tokyo hospital after being flown there Tues. by chartered jet from Beijing, where he had been hospitalized for treatment of cerebral hemorrhage. Ohga, 71, collapsed Nov. 7 at Beijing Music Festival while conducting performance of Tokyo Philharmonic Orchestra, of which he also is chmn.
NewKidCo International revised its results for 3rd quarter ended Sept. 30, citing “specific events that have adversely impacted previously reported figures.” N.Y. children’s videogame maker said it was “required to correct several significant inventory movement issues with certain key retailers” that “has resulted in the company taking some conservative reserves against sales in the 3rd quarter, to reduce net revenue to approximately $2 million.” COO Arthur Levine said: “While this adjustment is very disappointing, it is a reflection of the spotty and, at times, uneven conditions at retail, which have been exacerbated by platform transition issues, current trends indicating a recession and retail market instability following the events of September 11.” However, NewKidCo said “current indications suggest that these revenues will be made up in the 4th quarter.” As result, company said it had to “make a downward adjustment in its gross margin contribution” and its earnings by $800,000 from previously reported $200,000 profit. It said last month its 3rd quarter profit fell from year-earlier $900,000 on 20% lower revenue to $5.1 million (CED Nov 19 p6). Company blamed lower revenue on fewer-than-expected shipments of unidentified new title released in quarter on unnamed “older transition platform that has shown signs of retail resistance” in 2001’s 2nd half.
Best DVD and CD of year at Amazon.com are Star Wars: Episode I, The Phantom Menace and soundtrack from movie O Brother, Where Art Thou? respectively. Online retailer said selections were based on customer sales. Amazon editors’ top picks were The Godfather DVD collection and Bob Dylan’s Love and Theft CD.
TDK Mediactive (TDKM) unveiled list of 17 videogames it plans to publish in its fiscal year ending March 31, 2003. Calabasas, Cal., game publishing division of TDK Corp. said 17 titles included 4 for PlayStation 2 (PS2), 3 for GameCube, 2 for Xbox, 6 for Game Boy Advance (GBA), one for next generation or other yet to be announced platforms. PS2 games will include Aquaman (4th quarter), Pryzm Chapter One: The Dark Unicorn (Q1), Robotech (3rd quarter), Shrek (4th quarter). GameCube titles will be Robotech (4th quarter), Shrek (3rd quarter) and one title to be announced mid-to-late 2002. Xbox games will be Robotech and Shrek (each 4th quarter). GBA titles will be Aquaman (4th quarter), Dinotopia (2nd quarter), Lady Sia (4th quarter), Robotech (2nd quarter), 2 Shrek titles (first and 4th quarters), Ultimate Book of Spells (3rd quarter). Platform for Mercedes- Benz (4th quarter) has yet to be announced, company said. TDKM CEO Vincent Bitetti said releases of Lady Sia and Shrek in 2001 “marked a breakout year for our growing company.”
THQ started shipping game Star Wars: Jedi Power Battles for GBA.
Discreet said first software title to include its gmax game pack -- Microsoft’s Flight Simulator 2002 Professional Edition -- had shipped in U.S. San Francisco-based Discreet said players now could import content from Microsoft’s title, including 3D aircraft, buildings and other objects, into gmax software and customize content with new artwork and features. Players also can build detailed new objects for use with Microsoft title, Discreet said. Consumer version of gmax software is available as free download from Discreet Web site, www.discreet.com/products/gmax.