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.