LOSES WIDEN AT
Copyright 2000 www.tombraiderchronicles.com
[ September 1st 2000 ]
the computer games publisher best known for creating
Lara Croft, said talks with a potential bidder
were continuing on Thursday as it reported wider
first-quarter losses amid difficult trading conditions.
Eidos, which revealed 10 weeks ago that it was
in discussions with an unamed suitor, said the
outcome of the talks was too early to determine.
It is understood that Eidos has held early stage
negotiations with Infogrames Entertainment, the
French software company, about a cash and shares
offer, but it is not thought that any deal is
McGarvey, chief operating officer, said Eidos
would make a further announcement as soon as appropriate.
One of the stellar performers of last year, Eidos
has seen its value fall by about a third since
a series of profit warnings sparked by the downturn
in sales ahead of the arrival of new games consoles.
Although Eidos shares have risen recently on takeover
speculation, the company does not expect the difficult
trading conditions to ease in the second quarter.
Nick Gibson, games analyst at Durlacher, said:
"In the medium term, Eidos will be subject to
the rhythms of the market, which is not going
to be very favourable for the next 12 months."
on Thursday said the release of new titles such
as the Sydney Olympics game, Chicken Run and 102
Dalmatians would lift sales in the run-up to the
release of Sony's PlayStation 2 - now expected
in the UK in November. Mr McGarvey said he hoped
the release of the Tomb Raider film would stimulate
demand, while the company was developing a version
of the game for Microsoft's X Box console. He
added that the company was considering a return
to the strategy employed in the early years of
Tomb Raider of striking exclusive deals with hardware
losses increased to £22.3m in the three months
to June 30, from £20.9m a year ago. Revenues were
flat at £16.8m while losses per share were 14.8p
(16p). Eidos shares closed up 1.28 per cent at
495p on Thursday.