XM Satellite Radio Thurs. carried through with earlier announced plans to expand commercial service across southern half of U.S. and announced agreement on $66 million financial package that company said would be sufficient to fund operations “deep into” 2nd quarter of 2002.

TDK Mediactive reported $94,918 loss for 2nd quarter ended Sept. 30, reversing $153,669 profit (2? per share) in same quarter last year, but revenue for game maker rose to $4.6 million from $1.2 million. CEO Vincent Bitetti said: “Although our sales improved substantially over the prior year and the prior quarter, the results were somewhat impacted by slower than anticipated sales of Game Boy Advance hardware at retail, the natural next-generation cycling of the Game Boy Color marketplace and a general disruption of business during the month of September, exacerbated by the tragic events of September 11.”

Game maker Activision is confident 2001 will be strongest year in industry to date for rollout of new hardware platforms. But it still offered conservative take this week on how many GameCube and Xbox consoles would sell through to U.S. consumers this holiday season.

Three-Five Systems scaled back forecast revenue from liquid- crystal-on-silicon (LCoS) microdisplay business for current fiscal year to $3-$4 million from $15 million as OEM customers start to bring product to market. Thomson had been expected to deliver first 50W rear-projection TVs containing Three-Five’s 0.78” microdisplay to West Coast dealers by late Sept., but since had postponed move until late this year. “We had some refinements we had to make before the product met our specifications,” Thomson spokesman said. Samsung and 3M have licensed technology for PC monitors and front projectors, respectively, but have yet to deliver product. Samsung was to deliver product year ago, but pushed it back as it sought to improve resolution of microdisplays panels. “The revenues [from LCoS] will be below plan, but the demand remains high,” CEO Jack Saltich told analysts in earnings conference call late Wed. Some issues remain with components of display, including color quads and lamps, he said. Ramp-up for volume production of microdisplays is expected to begin in Tempe, Ariz., in first half next year, Saltich said. Three-Five, citing costs of developing LCoS, said it lost $4 million in 3rd quarter, reversing $4.3 million profit year earlier, as sales plunged to $26.6 million from $40.2 million. Earnings downturn also was tied to lower selling prices for LCD modules that Three-Five builds for cellular phones marketed by Motorola, which accounted for 75% of revenue in quarter. While Three-Five had hoped to reduce Motorola to 60% of revenue by 4th quarter, slower-than-expected rollout of LCoS will prevent it from meeting target, Saltich said. Three-Five’s LCD production, most of which has been switched to Far East after shutdown of Ariz. facility, is expected to break even in 4th quarter, he said. LCoS business will break even with sales of $15-$20 million, he said. Three- Five’s organic light-emitting diode (OLED) joint venture with DuPont is expected to start pilot of production of 1-5” passive matrix displays in 4th quarter, shifting to volume quantities by 2nd half 2002 at contract manufacturer Ritek’s plant in Taiwan. While Saltich earlier this year indicated OLEDs would target cellular phones at start, he told analysts that “power and lifetime” issues remain with that application and that joint venture would look at other products. OLEDs will generate $2 million revenue in 2002, Saltich said.

Jakks Pacific reported $10.9 million profit (56? per diluted share) for 3rd quarter ended Sept. 30, up from $9.8 million profit (48?) year ago. Revenue inched up to $92.8 million from $91.8 million. CEO-Chmn. Jack Friedman said: “In light of recent world events and the slowdown that is affecting virtually all segments of the economy including retail, we are well satisfied” with results. Malibu, Cal., company makes videogames and toys. Friedman said his company’s key videogame franchise -- World Wrestling Federation (shared with game maker THQ) -- would spawn 3 new titles in 4th quarter, including SKUs for Game Boy Advance, PlayStation 2, Xbox: “As the installed base for the new hardware systems increases, it bodes extremely well for sales of our World Wrestling Federation videogames for the 4th quarter, fiscal 2002 and beyond.”

TV ad campaign backing Bam! Entertainment’s Sports Illustrated For Kids Baseball and Football Game Boy Advance titles will run through Nov. on Cartoon Network and WB Network. E-rated (Everyone) games, developed by Sennari Interactive, ship this month at $39.99 each. Bam! said print ads would run in Nov.-Dec. issues of Sports Illustrated For Kids Magazine, along with Web campaign at www.SIkids.com.

Kimball International said first quarter net income plunged to $4.8 million from $10.8 million year ago as sales slid to $285.7 million from $320.8 million. Lower profit came as sales of Kimball’s furniture and cabinets business, including rear- projection TVs, and electronic contract assemblies dropped. Furniture revenue fell to $193.5 million from $223.7 million as sales shifted to lower margin products, company said. Operating profit improved at Kimball’s projection-TV cabinet plant in Juarez despite downturn in sales. Kimball purchased Juarez factory from Zenith in late 1990s as CE company disposed of manufacturing businesses. Electronic contract assemblies segment sales declined to $92.2 million from $97.1 million in year.

Microsoft declined to say how many Xbox consoles would actually ship on first day of videogame system’s European rollout in spring. Company said Xbox would ship March 14 at 479 euros (1 euro = 90 cents) in 16 major European markets. Details were announced by company at X01 show in Cannes, France, Wed. after our deadline. Microsoft did say, however, that through end of June, it planned to ship 1.5 million Xbox hardware units in Europe. Shipments there will include weekly replenishment from Xbox manufacturing facility in Hungary, it said. Majority of Xbox games would be priced at 69 euros but company didn’t say how many titles would ship at European rollout. Microsoft spotlighted 40 playable games at X01 while other games were announced for first time or shown on video. New games announced included Xbox exclusive BC from Lionhead Studios division Intrepid Games. Lionhead also demonstrated role-playing game Project Ego for first time. Both games are being published by Microsoft Games. Microsoft also announced more new first party titles, including Brute Force and Rallisport Challenge. Games were announced and/or demonstrated by Activision, Eidos, Electronic Arts, Infogrames, Sega, Tecmo, THQ, Ubi Soft. X01 was held at Maison Bulles mansion designed almost 30 years ago by Pierre Cardin. Xbox is scheduled to ship in N. America Nov. 15 and in Japan Feb. 22. As in Europe, it remained unclear at our deadline how many consoles would ship in N. America on Day One. Nintendo said its GameCube, to be available in N. America Nov. 18, would ship in Europe early next year but has yet to provide ship date.

Online music company Pressplay signed licensing agreements with 6 independent labels. Pressplay said deals expanded its online music library that already included tracks from major record labels EMI Recorded Music, Sony Music Entertainment, Universal Music Group. Latter 2 companies jointly own Pressplay. New, nonexclusive deals included one with Navarre. Via new agreements, Pressplay’s library will be getting songs by artists including Marshall Crenshaw, Herman’s Hermits, Billie Holiday, Alison Krauss, Mannheim Steamroller, Charlie Parker, Graham Parker, Jonathan Richman, Kenny Rogers, George Thorogood, 2 Live Crew, Buckwheat Zydeco. Pressplay service is scheduled to start this fall, but date hasn’t been announced. Competing MusicNet service jointly owned by BMG, EMI, RealNetworks and Warner also is also to start soon, although that date also hasn’t been announced.

Handspring said first quarter loss widened to $32 million from $16.3 million year ago as revenue declined to $61.4 million from $70.5 million. Gross profit margin slid to 8.6% from 12.6% as Handspring cut prices on handheld PCs to clear out inventory for arrival of new Neo and Pro models. Inventory rose in quarter to $6.7 million from $2.8 million June 30. International revenue declined to $4 million, 7% of revenue, from 24%. Sales in Japan suffered from Handspring’s lack of color screen version of its handheld, while models sold in Europe encountered stronger competition from Microsoft’s Pocket PC platform, CEO Donna Dubinsky said. New Treo handheld PC, first of which ships in Jan. at $399, combines organizer, cellphone and Web browser and will be based on GSM standard at start. Color screen version of Treo is expected to be available by mid-2002 at $599. Treo, which is based on 3.5 version of Palm operating system, isn’t compatible with Springboard modules used in other Visor devices. Software upgrade to GPRS standard will be completed in 2nd quarter when Handspring also expects to add always-on e-mail feature. Treo also has full on-screen keyboard that allows user to dial phone number. With introduction of Treo, Handspring said it would close out largely unsuccessful VisorPhone by year-end. While Handspring has studied adding Java to handheld platform, it has “no immediate plans” to do so, Chief Technology Officer Jeffrey Hawkins said: “We're always looking at Java and we can support it if we need to.”