Acclaim Entertainment is facing some financial trouble. Acclaim issued a press release announcing its financial results for the fourth quarter and fiscal year ending March 31, 2004. In it, Acclaim mentioned some of the issues the company is currently facing.
If the Company does not timely implement the new credit facility, substantially achieve its overall projected revenue levels as reflected in its business operating plan, continue to realize additional benefits from the expense reductions it has already implemented, and continue to receive the support of key suppliers and vendors, the Company will need to make further significant expense reductions, including, without limitation, sale of assets or the consolidation or closing of certain operations, additional staff reductions, and the delay, cancellation or reduction of certain product development and marketing programs.
Acclaim reported a loss of $56.4 million for its 2004 fiscal year, with revenues down $67.4 million from the previous year. Some analysts speculate Acclaim can dig itself out of this hole with several of its game releases later this year.
In the meantime, Acclaim is seeking loans but says that if such agreements are not finalized it may "be forced to cease operations or seek bankruptcy protection".