Electronics Boutique (EB) revised its earnings estimate for 3rd quarter ending Nov. 3. Computer and videogame chain based in W. Chester, Pa., said although it still expected to report year- over-year improvement in income, result would wind up being at low end of previously announced estimate of 11-14? per share. Company posted 6? per share profit for same quarter year ago. EB said it expected to report 3rd quarter sales would fall below estimates but with better-than-expected gross margins due to enhanced operating efficiencies and benefits from expansion of its preowned videogame business. Chain said comparable-store sales would “be in the negative single-digit range” after “delays in consumer purchases attributable, in part, to the events on and after September 11.” EB Pres.-CEO Jeffrey Griffiths said mall traffic was “not at last year’s level [but] appears to be improving and we remain optimistic that the last few weeks of October, a traditionally robust sales period, will be strong.” But he said it was “difficult to gauge the continued impact of recent events on consumer spending.” EB, he said, still expected “videogame market will grow more than 25% annually over the next few years.” Griffiths said “a number of software title introductions were delayed to late in the quarter or have been shifted by publishers from the 3rd to the 4th quarter.” He said that would coincide with U.S. rollouts of GameCube (Nov. 18) and Xbox (Nov. 15). Griffiths also said sales of PlayStation 2 console had “been particularly strong in Australia and Europe since Sony’s price reduction in late September.” Meanwhile, shares in U.K. Electronics Boutique dropped Wed. after U.S. EB sold its 18% stake (66.4 million shares).
In long-awaited comment from CD co-licensor Philips Wed., company told us music discs that impose playback restrictions in interest of copy prevention can’t be called Compact Discs without violating its trademark.
Samsung signed $56 million PDP supply contract with Italy’s Sambers. Samsung will ship 14,000 50W PDPs to Sambers over life of 3-year contract -- 2,000, 4,000 and 8,000 in 2002, 2003 and 2004, respectively. Samsung, which began production in July, has month capacity at Chonan, S. Korea, plant of 30,000 units. Other OEM customers include Acer and Sampo. Samsung also signed on Electrograph to distribute its PDPs in U.S.
InFocus reported 3rd quarter net income shrank to $2.7 million from $16.7 million year as projector maker took $6.1 million charge to cover layoffs in U.S. and Norway and merger- related expenses. Revenue slid 3% to $180.2 million.
NovaLogic is expanding its Comanche game franchise) to Xbox console. Calabasas, Cal., game maker said Xbox helicopter title would ship in late 2002. Comanche will be NovaLogic’s first title for Xbox, it said.
Activision acquired worldwide publishing rights excluding Japan for videogame Wreckless. Santa Monica game maker called title “first mission-based driving game for the Xbox.” Game, developed by Bunkasha Publishing, will ship in first quarter 2002, coinciding with European rollout of Microsoft’s console. Rating for game had yet to be determined as of Wed. Xbox Gen. Mgr. J. Allard said: “As one of the premier titles for Xbox, we are putting full marketing muscle behind Wreckless to build consumer awareness for what we believe to be one of this winter’s most anticipated releases.”
Mad Catz Interactive became latest licensee of Immersion’s TouchSense technology for videogame console peripherals, companies said Wed. Deal expands partnership established by companies in 1998. Mad Catz Pres.-COO Darren Richardson said technology was “valuable asset to console and peripheral manufacturers” because it added “increased sense of realism” to gameplay.
TDK Mediactive tapped investment banking company Wedbush Morgan Securities to be its financial adviser, terms not revealed. But game maker TDK Mediactive said “highlights [of deal] include pursuing future growth opportunities, possible future financings and relisting on Nasdaq.” TDK Mediactive CEO Vincent Bitetti said Wedbush already had served as “market maker” in his company’s common stock and companies would “work diligently to achieve our mutual objectives on behalf of our shareholders. Over the past 12 months, our firm has made significant enhancements to our overall strategy and capabilities. Wedbush Morgan will help to facilitate our communication with the investor community and assist in making the key decisions needed to meet our goals of increasing financial flexibility and valuation.” Separately, game maker said its exclusive Shrek game for Microsoft’s Xbox would be available on store shelves Nov. 15 -- day one of console’s U.S. rollout -- at $49.99.
Philips licensing subsidiary U.S. Philips filed suits against 8 additional chip manufacturers alleging infringement on patent (4,689,740) on inter-integrated circuit bus (I2C bus) devices. Suits, filed in U.S. Dist. Court, N.Y., allege 5 U.S.- based defendants with manufacturing infringing ICs, while 3 Taiwan-based companies are charged with importing infringing devices into U.S. Philips filed similar suits year ago against 6 semiconductor manufacturers, 2 of which have settled.
Promoted at Kenwood USA: Sally House to mktg. communications mgr., Brian Towne to national product mgr., home and mobile electronics, (James Yamasaki to product mgr., navigation… Gary Wesley advanced to dir.-planning & business development for eBridge direct mktg. project, Sony Digital Authoring Services.