Beam International Limited (ASX/BEM), Australia's leading
computer game publisher, is pleased to announce strong profit
and revenue figures for the year ending June 30, 1997, which
exceed Prospectus forecast.
 Beam's net profit of $2.116 million was earned on revenues of $12.531 million and an EBIT of $2.551 million, figures
which were 4 per cent and 11 per cent higher than forecast in the Prospectus.
The key earnings driver for the Company was the outstanding international success of its computer games, KKnD and
Cricket 97, which achieved Top Ten sales status in key overseas markets.
The Board of Directors believes Beam International Limited is well positioned to achieve strong earnings growth in the
1997 / 1998 financial year.
The Chairman of Beam International Limited, Mr. Alfred Milgrom, has prepared the following message to shareholders:
"It is with great pleasure that I am able to advise you of the Company's results to 30 June 1997, its first financial
year as a public company.
The Company has exceeded its Prospectus Forecasts with:
- Revenue growth from $5.28 million to $12.53 million, and
- Profit (EBIT) growth from $1.03 million to $2.55 million
The summary of results is as follows:
| Results | ($'000s) |
| |
| Total Revenue | 12,531 |
| Profit (EBIT) | 2,551 |
| Abnormals | |
| Adjustments for prior periods | (285)1 |
| Interest expense | (150)2 |
| Net Profit | 2,115 |
| |
| EBIT Profit per share 6.1 cents |
Notes:
- Abnormals relate to Group tax and payroll tax for prior
year periods (1990-1995)
- In order to maintain consistency with the information
provided in the Prospectus, Interest Expense has been
calculated as Actual Interest Expenses Paid less Interest
Received other than Interest Income from R&D Term deposits.
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Overview
Shareholders will recall that the main objective in listing the Company was to enable it to operate as a publisher of
computer games, rather than only as a developer of computer and video games.
This strategy has been successful, with over 70% of revenue in the year being derived from its publishing activities.
The Company published two titles during the period - 'KKnD', a strategy wargame for PC CD-ROM and a sports game simulation, 'International Cricket '97', also for the PC CD-ROM.
Both titles were successful internationally, with both titles achieving Top Ten status in many countries. 'KKnD'
was released in over 20 different countries and included Mandarin, Simplified Mandarin, French, German, and Spanish versions as well as the English language version.
Future activities
Publishing of computer games will continue to be the Company's main activity in the forthcoming period and will drive the Company's growth.
The Company will also continue to be involved in the development and publishing of educational interactive products, such as the Company's own widely acclaimed 'Languages for Kids' series.
Other activities include the exploitation and development of the Company's technology, such as its authoring system, its video compression technology and the results of its R&D activities in optical facial capture systems (to be marketed as 'Famous Faces').
The Board of Directors believes this Company will grow further in the 1997 / 1998 financial year. It expects EBIT to exceed $3 million in the next financial year.
Summary
In summary, the first year's results exceed Prospectus projections with strong revenue and profit growth.
The Company has demonstrated its ability to develop, market and distribute its products internationally and expects its computer games publishing division to continue to grow in the next year."
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