RNS No 9620w
S.E.A MULTIMEDIA LIMITED
27th November 1997
S.E.A MULTIMEDIA LIMITED
THIRD QUARTER RESULTS FOR THE NINE MONTHS
TO 30 SEPTEMBER 1997
CHAIRMAN'S STATEMENT
Introduction
1997 continues to be a year of transition and investment, the necessary
strategic and operational structures are being put in place for strong growth
into the future. In the period under review, S.E.A concentrated on continuing
to build its games and sports publishing businesses and to invest in its R&D
subsidiary. The anticipated losses reported for this period reflect these
investments.
Current developments
Games Publishing Division
S.E.A. currently has two games in the market, @Range, the online massively
multiplayer submarine game, and Virus, the strategy/action computer game.
@Range is currently available on Mpath's Mplayer game network in the US, and
Virus has been released in Europe by Telstar and in the US by Sirtech. S.E.A.
will begin to see the first results of revenues from these two products by the
end of 1997.
S.E.A. is currently developing three new computer games, The Family, a
strategy/action mafia game, NetRiderZ, a follow-on to Virus, and Subway, an
action game set in the New York subway. All of these games use S.E.A.'s
proprietary 3D technology. S.E.A. is in discussions with publishers in Europe
and the US about distribution deals for these three products. S.E.A.
anticipates receiving advances from publishers for at least one of these games
in second quarter 1998.
On the 28th of July, S.E.A. acquired Kidum Multimedia Ltd. for shares in
S.E.A. The assets acquired totaled $759,000. S.E.A. has decided to write off
$520,000 of these assets as a current expense in this quarter in order to
adopt the most conservative accounting treatment for the acquisition. The
majority of the remaining $239,000 will be recognized by year-end as game
development costs, except for an estimated $50,000 in fixed assets.
Sport Content Division
S.E.A.'s latest Olympic CD-ROM title, Winter Games, is being released in
Japan, Germany, Norway and Finland, before the Nagano (Japan) Games in
February. S.E.A. has also released a DVD-video title, An Olympic Century,
which is being bundled with DVD-video players by Panasonic Europe. S.E.A. has
been selected by the International Olympic Committee to be part of team which
is creating the official IOC Web site, to be launched in February 1998. The
company is currently in discussion with other major media and sport
organizations for future Internet-related projects.
Manna Network Technologies
Tapware Technologies, S.E.A.'s R&D subsidiary, has been officially renamed
Manna Network Technologies, in order to focus on the company's proprietary
Manna technology. Manna Network Technologies specializes in creating high-end
server technology for the deployment of dynamic agents on networks. In order
to avoid further impact on cash resources of S.E.A. and with a view to
creating a separately financed company, the company is currently in
discussions with venture capitalists in the US and Israel to raise financing
required to complete development of its first product, the Manna Agent-Server.
A demo of the Manna Agent-Server will be shown at the Internet World show in
New York in December.
Outlook
S.E.A. believes that all three of these businesses have made significant
progress over the past quarter and will be well-positioned for growth in 1998
and beyond.
Tal Barnoach
President & CEO
Enquiries: Tal Barnoach, C.E.O. and Chairman
S.E.A. Multimedia Limited
Telephone: 00 972 3 6880855
Tim Robertson/Wendy James
Hudson Sandler Limited
Telephone: 0171 796 4133
S.E.A. MULTIMEDIA LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS THREE MONTHS
ENDED ENDED YEAR
SEPT 30 SEPT 30 DEC 31
1997 1996 1997 1996 1996
(unaudited) (unaudited) (audited)
US$ US$ US$ US$ US$
Sales 281,616 3,297,696 111,399 1,008,309 3,940,612
Cost of sales 1,538,598 1,797,103 862,552 528,458 2,151,312
Gross profit (loss) (1,256,982) 1,500,593 (751,153) 479,851 1,789,300
Research and
development expenses 259,212 126,375 90,431 30,213 150,325
Marketing and selling
expenses 995,447 316,289 393,419 137,374 502,448
General and
administrative expenses 505,978 519,969 164,442 199,801 679,920
Total operating
expenses 1,760,637 962,633 648,292 367,388 1,332,693
Operating income
(loss) (3,017,619) 537,960 (1,399,445) 112,463 456,607
Financing income, net 4,216 119,006 1,811 90,104 256,459
Net income (loss)
for the period (3,013,403) 656,966 (1,401,256) 202,567 713,066
Earnings income (loss)
per 100 shares at
Nis 0.01 each (12.79) 3.11 (6.09) 0.88 3.30
Weighted average number
of 100 shares 235,516 211,181 230,160 231,289 215,937
S.E.A. MULTIMEDIA LTD.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30 DECEMBER 31
1997 1996 1996
(unaudited) (audited)
US$ US$ US$
CURRENT ASSETS
Cash and cash equivalents 1,030,495 2,798,652 2,405,851
Trade receivables 417,177 1,026,914 1,291,332
Prepaid expenses 1,110,360 599,712 435,638
Other current assets 51,440 53,260 37,956
Total current assets 2,609,472 4,478,538 4,170,777
FIXED ASSETS
Cost 724,121 533,857 569,848
Less - accumulated depreciation 219,780 94,800 123,148
Total fixed assets 504,341 439,057 446,700
OTHER ASSETS
Cost 749,117 643,074 749,117
Less - accumulated amortization 592,827 179,935 224,993
Total other assets 156,290 463,139 524,124
Total assets 3,270,103 5,380,734 5,141,601
CURRENT LIABILITIES
Short-term bank credit and
current maturities 8,550 39,544 207,099
Advanced payments from customers 458,750 - -
Accounts payable 396,734 298,159 358,970
Other current liabilities 208,567 501,373 153,693
Total current liabilities 1,072,601 839,076 719,762
LONG-TERM LIABILITIES
Loans, net of current maturities - 171,886 -
Liabilities for severance pay 95,945 60,240 56,207
Total long-term liabilities 95,945 232,126 56,207
SHAREHOLDERS' EQUITY
Share capital 76,380 70,075 70,075
Share premium 4,781,994 4,038,971 4,038,971
Retained earnings
(Accumulated deficit) (2,756,817) 200,486 256,586
Total shareholders' equity 2,101,557 4,309,532 4,365,632
3,270,103 5,380,734 5,141,601
S.E.A. MULTIMEDIA LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS THREE MONTHS YEAR ENDED
ENDED SEPT 30 ENDED SEPT 30 DEC 31
1997 1996 1997 1996 1996
(unaudited) (unaudited) (audited)
US$ US$ US$ US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (3,013,403) 656,966 (1,401,256) 202,567 713,066
Adjustments to reconcile
net income (loss) to net
cash used in operating
activities:
Expenses not affecting operating cash flows:
Increase in liabilities
for severance pay 39,738 32,548 19,179 11,666 28,515
Depreciation and amortization 1,165,160 187,015 866,399 68,760 260,421
1,204,898 219,563 885,578 80,426 288,936
Changes in operating assets and liabilities:
Increase (decrease) in trade
receivables 874,155 (783,619) 330,671(143,580)(1,048,037)
Increase in prepaid expenses (674,722)(271,240) (477,578) (47,446) (107,166)
Increase (decrease) in other
current assets (13,484) (32,398) (18,728) 45,490 17,094)
Increase (decrease) in
advanced payments from
customers 458,750 (250,000) 431,750 (233,761) (250,000)
Increase (decrease) in other
current liabilities 37,764 276,806 24,414 (250,865) 173,619
Increase in accounts payable 54,874 213,451 43,352 (216,043) 29,769
Net cash (used) in operating
activities (1,071,168) 29,529 (181,797)(563,212) (216,907)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (105,639)(272,903) (36,715)(121,156) (308,894)
Increase in other assets - (102,384) - (102,384) (208,427)
Net cash used in investing
activities (105,639)(375,287) (36,715)(223,540) (517,321)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share capital
issue, net - 3,327,939 - - 3,327,939
Short-term bank credit, net (198,549) (146,947) 6,025 (480) (141,830)
Long-tern loans received
from related parties - (11,226) - (11,226) -
Repayment of long-term
loans, net - (28,291) - 1,777 (48,965)
Net cash provided by
(used in) financing
activities (198,549) 3,141,475 6,025 (9,929) 3,137,144
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (1,375,356) 2,795,717 (212,487)(796,681) 2,402,916
CASH AND CASH EQUIVALENTS
AT BEGINNING OF THE PERIOD 2,405,851 2,935 1,242,982 - 2,935
CASH AND CASH EQUIVALENTS
AT END OF THE PERIOD 1,030,495 2,798,652 1,030,495 (796,681)2,405,851
SUPPLEMENTARY INFORMATION ON FINANCIAL ACTIVITIES
NOT INVOLVING CASH FLOWS:
Purchased assets in
consideration for shares
issued 740,403 - 740,403 - -
S.E.A. MULTIMEDIA LTD.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
RETAINED
EARNINGS
SHARE SHARE (ACCUMULATED
CAPITAL PREMIUM DEFICIT) TOTAL
Audited: US$ US$ US$ US$
Balance at December 31, 1995 832 780,275 (456,480) 324,627
Distribution of bonus
shares 58,176 (58,176) - -
Shares issued 11,067 3,316,872 - 3,327,939
Net profit the year - - 713,066 713,066
Balance at December 31,
1996 70,075 4,038,971 256,586 4,365,632
Unaudited:
Balance at December 31,
1995 832 780,275 (456,480) 324,627
Distribution of bonus share 58,176 (58,176) - -
Share issued 11,067 3,316,872 - 3,327,939
net income for period - - 656,966 656,966
Balance at September 30,
1996 70,075 4,038,971 200,486 4,309,532
Balance at December 31,
1996 70,075 4,038,971 256,586 4,365,632
Shares issued (see note 4) 6,305 743,023 - 749,328
Net loss for the period - - (3,013,403) (3,013,403)
Balance at September 30,
1997 76,380 4,781,99 (2,756,817) 2,101,557
Balance at July 1, 1996 70,075 4,038,971 (2,081) 4,106,965
Net profit for the period - - 202,567 202,567
Balance at September 30,
1996 70,075 4,038,971 200,486 4,309,532
Balance at July 1, 1997 70,075 4,038,971 (1,355,561) 2,753,485
Shares issued (see note 4) 6,305 743,023 - 749,328
Net loss for the period - - (1,401,256) (1,401,256)
Balance at September 30,
1997 76,380 4,781,994 (2,756,817) 2,101,557
S.E.A. MULTIMEDIA LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AT SEPTEMBER 30, 1997
NOTE 1 - GENERAL
A. The interim financial statements for the nine month period and three
months period ended September 30, 1997 (hereinafter -"the interim financial
statements") are presented in accordance with generally accepted accounting
principles for interim financial statements. In the opinion of the
management, the interim financial statements reflect all adjustments
(consisting solely of normal recurring accruals) necessary for the fair
presentation of the results for the period. The generally accepted
accounting principles applied in the preparation of the interim financial
statement are consistent with those applied in the preparation of the annual
financial statements. Operating results for the three and nine month period
ended September 30, 1997 are not necessarily representative of the results
of operations for the full year.
B. These financial statements should be read in conjunction with the audited
financial statements of the Company as of December 31, 1996 and the
accompanying notes. Copies of the audited financial statements are available
from the Company's registered office at 4 harechev Street, Tel Aviv, Israel
and at the offices of the Company's nominated adviser and broker, Raphael
Zorn Hemsley Limited, Cheapade House, 138 Oheapside, London EC2V 6BJ.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the preparation of these
interim financial statements are consistent with those applied in the audited
annual financial statements as of December 31, 1996.
NOTE 3 - PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of the Company and
MANNA NETWORK TECHNOLOGIES LTD. a subsidiary company wholly-owned.
Intercompany balances and transactions have been eliminated.
NOTE 4 - SHARES ISSUED
On July 28th 1997, the Company purchased from KIDUM MULTIMEDIA (1995) LTD. all
of its assets, products and rights in consideration for 2,235,165 newly issued
shares of the Company.
THE BOARD OF DIRECTORS OF
S.E.A. MULTIMEDIA LTD.
Re: Review of the unaudited interim consolidated financial statements as at
September 30, 1997
At your request, we have reviewed the accompanying consolidated balance
sheet of S.E.A. MULTIMEDIA LTD. as at September 30, 1997, and the related
consolidated statements of operations the consolidated statement of changes
in shareholders equity and cash flows for the three month period and nine
month period three ended. Our review was performed in accordance with the
procedures prescribed by the Institute of Certified Public Accountants in
Israel. Inter-alia, these procedures include: reading the above mentioned
financial statements, reading minutes of meetings of the board of directors
and its committees, and making inquiries of company officers responsible for
financial and accounting matters.
Since our review was limited in scope and does not constitute an audit in
accordance with generally accepted auditing standards, we do not express an
opinion on the above mentioned condensed consolidated financial statements.
During our review, nothing came to our attention that indicated that
significant adjustments should be made in the aforementioned consolidated
financial statements in order for them to be considered as having been
prepared in accordance with generally accepted accounting principles.
From:
R. GOLDBERG & Co.
Certified Public Accountants (Isr.)
Tel Aviv, November, 1997
END
QRTPBGUAGBGMGRQ
Ls -1x Mu (LSE:SMU)
過去 株価チャート
から 5 2024 まで 6 2024
Ls -1x Mu (LSE:SMU)
過去 株価チャート
から 6 2023 まで 6 2024