SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 13, 1997
BRILLIANT DIGITAL ENTERTAINMENT, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-21637 95-4592204
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
6355 Topanga Canyon Boulevard, Suite 513
Woodland Hills, California 91367
(Address of Principal Executive Offices)
(818) 346-3653
(Registrant's Telephone Number)
<PAGE>
ITEM 5. OTHER EVENTS
Reference is made to the press release of Registrant, issued on May 13,
1997, which contains information meeting the requirements of this Item 5, and
which is incorporated herein by this reference. A copy of this press release
is attached to this Form 8-K as Exhibit 99.1.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
May 14, 1997 BRILLIANT DIGITAL ENTERTAINMENT, INC.
By: /s/ Michael Ozen
---------------------------------
Michael Ozen
Chief Financial Officer
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EXHIBIT INDEX
Exhibits Page Number
- -------- -----------
99.1 Press Release dated May 13, 1997. 5
Exhibit 99.1
For More Information:
BRILLIANT DIGITAL ENTERTAINMENT COFFIN COMMUNICATIONS GROUP
6355 Topanga Canyon Blvd, Ste. 513 15300 Ventura Blvd., Suite 303
Woodland Hills CA 91367 Sherman Oaks, CA 91403
(818) 346-3653 (818) 789-0100
CONTACT: Mark Dyne CONTACT: Bryan G. Crane
Chairman and CEO Partner
Michael Ozen
Chief Financial Officer
For Immediate Release:
May 13, 1997
BRILLIANT DIGITAL ENTERTAINMENT
RELEASES FIRST QUARTER 1997 RESULTS
LOS ANGELES, CALIFORNIA, MAY 13, 1997....BRILLIANT DIGITAL ENTERTAINMENT
INC., (AMEX:BDE) today announced the results for the quarter ended March 31,
1997.
Revenues for the quarter ended March 31, 1997 were $74,000 compared with
$584,000 for the quarter ended March 31, 1996. Net loss for the quarter
ended March 31, 1997 was $996,000, or $0.14 per share, compared to net income
of $173,000, or $0.04 per share for the comparable quarter in 1996. The
results for the quarter ended March 31, 1996 are prior to the formation of
the group's parent company, the acquisition of Sega Australia New
Developments ("SAND"), and the change in the group's focus. The results for
the quarter ended March 31, 1996 are therefore not comparable to those for
the quarter ended March 31, 1997.
The loss in the three months ended March 31, 1997 resulted primarily from an
increase in operating expenses and development costs, and a reduction in
revenues from traditional children's CD-ROM products as the Company focused
its efforts on development of its new generation of three dimensional
digitally created entertainment, and expanded in anticipation of growth.
"We are pleased with our progress to date," said Chairman Mark Dyne.
"'Cyberswine', our first Multipath Movie, is fully laid up and is now in
final Beta stage. 'Gravity Angels' is in production as well as the first
title in our Multipath Movie for kids series. 'Amzor', our fourth Multipath
Movie, is currently in development."
<PAGE>
Chairman Dyne went on to say, "We're also in production on the first title in
the StoryTeller Series, 'The Halloween Party', which is part of our deal with
Bantam Doubleday Dell Books For Young Readers. Two additional titles are now
in development."
Dyne also noted that Brilliant has completed its new state-of-the-art
production studio in Sydney, Australia and has occupied the new space.
Brilliant was formed in July, 1996, and combines the business of Brilliant
Interactive Ideas, Pty. Ltd ("BII Australia"), an entertainment software
developer and producer, and the technology of SAND, a research and
development operation for leading edge software tools, acquired by the
Company in September, 1996. SAND was responsible for developing the
Company's suite of proprietary software tools and production process.
The Company's historical operations reflect only the operations of BII
Australia and are not necessarily indicative of future results. Since its
founding in September 1993, BII Australia has developed and sold interactive
education and entertainment CD-ROM titles primarily for children. With the
acquisition of SAND, the nature and focus of the Company's business has
changed significantly.
Brilliant Digital Entertainment is the production and development studio
responsible for the creation of Multipath Movies, a new generation of digital
entertainment to be distributed over the Internet, on CD-ROM, as television
programming, and for home video. Multipath Movies utilize proprietary,
technologically advanced software tools to produce three-dimensional,
digitally animated stories, each with hundreds of plot alternatives, or
paths, that lead to multiple distinct conclusions that are influenced by the
user. Brilliant has previously announced a strategic alliance with Packard
Bell NEC to distribute its Multipath Movies over the Internet's World Wide
Web and has acquired the exclusive worldwide interactive rights from Bantam
Doubleday Dell Books For Young Readers for the successful Choose Your Own
Nightmare and Choose Your Own Adventure series of interactive books.
Except for the historical information contained herein, the matters discussed
in this news release are forward-looking statements that involve risks and
uncertainties. Potential risks and uncertainties include without limitation
the market acceptance of Multipath Movies, the ability of the Company to
introduce and successfully market its initial release and additional
Multipath Movies on a timely basis, the ability of the Company to derive
benefits expected from its strategic relationships, and the effect of
competitive products on the market for Multipath Movies. Further information
on potential factors that could affect the company's financial results are
included in the Company's Form 10-KSB previously filed with the SEC and will
be included in the Company's Form 10-QSB for its 1997 first quarter to be
filed with the SEC.
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BRILLIANT DIGITAL ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
<TABLE>
<CAPTION>
March 31,
1997
--------
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents. . . . . $6,841
Accounts receivable, net. . . . . 80
Accounts receivable from related
parties . . . . . . . . . . . . 28
Other assets. . . . . . . . . . . 174
--------
Total current assets. . . . . . . . 7,123
Property, plant and equipment, net. 401
Other assets. . . . . . . . . . . . 282
--------
Total assets. . . . . . . . . . . . $7,806
========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $1,134
Deferred revenue. . . . . . . . . 233
Notes payable, related party. . . 82
--------
Total current liabilities . . . . . 1,449
Stockholders' equity:
Common Stock. . . . . . . . . . . 7
Additional paid-in capital. . . . 11,320
Accumulated deficit . . . . . . . (4,951)
Cumulative translation adjustment (19)
--------
Total stockholders' equity. . . . . 6,357
--------
Total liabilities and stockholders' equity $7,806
========
</TABLE>
<PAGE>
BRILLIANT DIGITAL ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
3 mos ended 3 mos ended
3/31/97 3/31/96
(unaudited) (unaudited)
--------- --------
<S> <C> <C>
Revenue:
Total revenues . . . . . . . . . . $ 74 $ 584
--------- --------
Cost of revenues and expenses:
Cost of revenues. . . . . . . . . . 8 136
Sales & marketing . . . . . . . . . 63 37
General and administrative. . . . . 540 105
Research and development. . . . . . 489 99
Depreciation. . . . . . . . . . . . 51 26
--------- --------
Total cost of revenues and
expenses. . . . . . . . . . . . . 1,151 403
--------- --------
Income (loss) from operations . . . (1,077) 181
OTHER INCOME (EXPENSE):
Gain (loss) on foreign exchange . . (10) 3
Interest income (expense), net. . . 92 (11)
--------- --------
Total other income (expense). . . 82 (8)
--------- --------
Income (loss) before
income taxes . . . . . . . . . . (995) 173
Provision for income taxes. . . . . (1) --
--------- --------
NET INCOME (LOSS) . . . . . . . . . $ (996) $ 173
========= ========
NET INCOME (LOSS) PER SHARE . . . . $ (0.14) $ 0.04
========= ========
Common shares used in computing
income (loss) per share . . . . . . 7,200 4,557
========= ========
</TABLE>
