Broderbund Loss Exceeds Expectations
Broderbund Software Inc. said it had a wider-than-expected loss before charges in its fiscal fourth quarter as the software company spent heavily to market its new video game Riven, the sequel to Myst.
The company said it had a loss of $2.2 million, or 11 cents a share, before the charges, compared with a profit before a charge in the year-ago quarter of $4.2 million, or 20 cents. Broderbund was expected to report a loss in the quarter ended Aug. 31 of 2 cents a share, the average estimate of 14 analysts surveyed by IBES International Inc.
The company said it spent heavily during the quarter for marketing the sequel to Myst, the best-selling video software game ever. Myst and Riven were developed by Spokane-based Cyan Inc.
In Broderbund’s latest quarter, pretax charges for acquisitions, restructuring and write-offs totaled $27.2 million, or 80 cents a share after tax.
Revenue rose 42 percent to $45.7 million from $32.2 million in the year-ago quarter, a larger increase than some analysts were expecting.