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4Kids Reports US$13.8 Million Loss in Second Quarter
posted on by Egan Loo
The American licensing and distribution company 4Kids Entertainment revealed in its Securities and Exchange Commission 10-Q report on Monday that it had an unaudited net loss of US$13.75 million for the quarter ending on June 30. 4Kids recorded a net loss of US$5.532 million during the same period last year. 4Kids had unaudited net revenues of US$4.401 million during the most recent quarter, compared to US$16.54 million in during the same period last year. For the six months ending on June 30, the company reported US$14.6 million in net revenues and US$15.8 in net loss, compared to US$31.6 million and US$11.9 million, respectively, for the same period last year.
4Kids attributed US$7.25 million of the quarterly net loss to a loss on the sale of "one of its auction rate securities" that are not related to day-to-day business operations. Chairman and CEO Alfred R. Kahn also noted that his company shipped US$2.6 million of Chaotic trading cards during the quarter, but it cannot record those sales as revenue until those cards are actually sold to consumers later in the year.
4Kids confirmed last Wednesday that it has retained the financial advisor Montgomery & Co. to help evaluate its strategic alternatives. 4Kids' Board of Directors plans to consider options "including, but not limited to, asset sales, alliances with strategic partners, and/or a sale of the Company through a merger or other corporate transaction." 4Kids notes that it may decide to execute none of these options. 4Kids' past and current anime licenses have included Pokémon, One Piece, Tokyo Mew Mew, Kirby: Right Back At Ya!, Sonic X, Yu-Gi-Oh!, Shaman King, and Dinosaur King.
Source: ICv2
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