Third quarter losses hit 4Kids - Licensing.biz

Third quarter losses hit 4Kids

Firm reports $9.8m loss for period; Acquisition discussions continuing; Chaotic business closed.
Author:
Publish date:
11_184_5772_184_5740_184_5477_4Kids logo - good sized.jpg

4Kids Entertainment has endured another tough quarter - reporting losses of $9.8 million for the three months ending September 30th 2010.

The firm is also continuing to explore its strategic options. The Special Committee of the Board of Directors is involved with ongoing discussions with several companies which may be interested in investing in 4Kids or acquiring all or a portion of the company's business.

At the end of the third quarter, 4Kids also discontinued business operations of trading card subsidiary, TC Digital Games, and majority owned website company, TC Websites. CEO Alfred Kahn said that the cessation of the Chaotic related businesses should save $1 million per quarter, as well as enabling the firm to concentrate on its core merchandise licensing business.

"4Kids had another tough quarter as the company continues its efforts to rationalise its cost structure, rebuild revenues and execute its turnaround plan," Kahn said. "Despite the reported third quarter losses of $(.73) per share, the cash burn in the third quarter was approximately $700,000."

Net revenues for Q3 totalled $3 million, compared to $5.3 million for the same period in 2009. For the nine months ending September 30th, meanwhile, net revenues were $9.7 million, compared to $18 million for the same period in 2009. Net loss was $19.8 million.

As of September 30th, 4Kids had approximately $4 million in cash and $10.9 million in investment securities at their fair market value.

Related

Featured Jobs

Warner Bros Logo 620 x 349

Senior Category Manager.

Warner Bros. Entertainment Inc. is the entertainment arm of the world's leading communications company, Time Warner. Warner Bros. Entertainment Inc. comprises numerous divisions including Television, Home Video, Theatrical, On-line and Consumer Products.

Roaddahl_job_logo_final

JUNIOR GRAPHIC DESIGNER

Roald Dahl | Marylebone, London | Salary Dependent on experience | Contract 6-month FTC | 5-day week, Monday to Friday | Start ASAP

Endemol_new_job_logo

Senior Product Development Designer

Endemol Shine Group is a global content creator, producer and distributor with a portfolio of international hits including Big Brother, Black Mirror, Deal or No Deal, Humans, Hunted, MasterChef, Mr. Bean, The Biggest Loser, The Island, Spelling Star, Your Face Sounds Familiar and many more. Endemol Shine Group’s businesses have creative operations in over 30 markets, with a diverse portfolio of over 600 revenue generating formats across scripted and non-scripted genres, alongside digital, gaming, and distribution operations.