3DO's Quarterly Report

Following a month of stock swaps and buybacks, 3DO announced a record US$21 million profit in its first fiscal quarter. The company reported net income of $21.2 million, or $0.70 per share, compared to a net loss of $10.4 million, or a $0.39 per share loss, for the same quarter in the previous fiscal year.

While income increased, revenues dipped slightly. 3DO's revenues totaled $14.4 million for the quarter compared to $15.3 million for the first quarter last year. The company ended the quarter in a strong financial position with $46 million in cash and cash equivalents.

Income from the first quarter includes a one-time gain of $18 million from the sale of assets left over from the company's defunct hardware business.

Software publishing revenue increased to $2.3 million in the quarter from $0.9 million in the same period the previous year.

3DO announced earlier this month that the board of directors had approved a plan to buy back up to $5 million of the company's common stock. A few days later, Matsushita returned 3.2 million shares of 3DO's stock in exchange for an agreement not to compete with or collect royalties from M2 technology.