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Beam releases results for 1998: 'Positioned for growth'

Beam International Limited today released its results for the full 1997 / 1998 financial year, and reported that it was extremely well positioned for sales and profit growth in the coming financial years.
 Chairman of Beam International Limited, Alfred Milgrom, said that the company had achieved very positive results in the past financial year. These included:
  • Developing the Company's publishing business, Melbourne House, to a capacity of 5 titles per year commencing in 1998 / 1999.
  •  Signing international distribution agreements for the Melbourne House range of products.
  •  Obtaining unconditional minimum sales guarantees from those distributors in excess of A$ 13 million.
For the financial year 1997 / 1998, the Company reported sales of $6.6 million and an EBIT loss of $1.85 million.
 "These results reflect the most conservative position possible for the company", commented Alfred Milgrom.
 "The Board of Beam International Limited decided on an accounting approach which does not take up that $13 million in guarantees as sales."
 "Had we taken up all of the guarantees as sales, our EBIT result would have been a profit of over $2.5 million.
"Although the Accounting Standards would not prevent us from doing so, the Directors felt that doing so would create confusion in the minds of shareholders, analysts and prospective investors", continued Alfred Milgrom.
 The guarantees of sales are unconditional sales commitments from GT Interactive and Infogrames for the North American and European markets respectively, over a range of Melbourne House titles.
 "Our decision to take a hit in this financial year means that we now have a very solid underpinning to our forecasts for the coming year", commented Mr. Adam Lancman, Managing Director for Beam International Limited.
 The independent Directors, Dr. Terry Cutler and Mr. John Thompson, strongly support this conservative approach.
 "Any real assessment of the company must take account of the locked-in sales guarantees," said Dr. Cutler, "and this picture shows that the Company's long-term strategy is firmly on track."
 To explain further, Mr. Alfred Milgrom said: "In this financial year we have expanded our development capacity and secured a first-rate distribution network. The end result is a strong range of products for the 1998/1999 and 1999/2000 years and products that have great appeal to consumers world-wide, as evidenced by the guarantees we have obtained from our distributors."
Beam International Limited is Australia's only multimedia development company listed on the Australian Stock Exchange (and trades under the symbol BEM). More information about Beam International Limited, Melbourne House and Beam Software can be found on the Web site at http://www.beam.com.au.
 For further information concerning Beam International Limited, please contact Ms. Crystal Eid
Beam International Limited
By tel.: +61 (0)3 9866.8300, ext, 207,
by fax on +61 (0)3 9866.8674
or by email at crystale@beam.com.au
Press release:- Friday September 11, 1998