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): February 19, 1998
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 120
Woodland Hills, California 91367
(Address of Principal Executive Offices)
(818) 615-1500
(Registrant's Telephone Number)
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ITEM 5. OTHER EVENTS
Reference is made to the press release of Registrant, issued on February
19, 1998, 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.
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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.
February 23, 1998 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 February 19, 1998. 5
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Exhibit 99.1
For More Information:
BRILLIANT DIGITAL ENTERTAINMENT JAFFONI & COLLINS
6355 Topanga Canyon Blvd, Ste. 120 104 Fifth Avenue
Woodland Hills CA 91367 New York, NY 10011
(818) 615-1500 (212) 835-8500
CONTACT: Mark Dyne CONTACT: David Collins
Chairman and CEO Partner
Michael Ozen
Chief Financial Officer
For Immediate Release:
BRILLIANT DIGITAL ENTERTAINMENT
PREVIEWS YEAR-END RESULTS
LOS ANGELES, CA -- February 19, 1998 - Brilliant Digital Entertainment, Inc.
(AMEX: BDE) announced today that revenue for the year is expected to be
approximately $2,500,000, a 105% increase over revenues of $1,213,000 in the
prior year. The Company anticipates a net loss of approximately $2,300,000,
or $0.31 per share, compared to a year-ago net loss of $3,658,000, or $0.77
per share. Brilliant expects to report 1997 fourth quarter revenues of
approximately $110,000 as compared with $69,000 in the prior year's period.
The Company anticipates a fourth quarter net loss of approximately $1,450,000,
or $0.18 per share, compared with a net loss of $1,298,000, or $0.24 per share,
in the comparable period a year ago. As previously scheduled, Brilliant will
report audited year-end results on March 12, 1998.
Brilliant anticipated completing foreign distribution and licensing
relationships in the fourth quarter of 1997, which are now expected to be
completed in the first half of 1998. These relationships were expected to
generate substantial revenues in 1997. In December 1997 guidance in accounting
practice for revenue recognition on software transactions (SOP 97-2) took
effect, and Brilliant now expects revenues from the agreements, once
consummated, to be recognized over their duration in accordance with SOP 97-2.
In addition, delays in duplication, packaging and distribution caused
Brilliant's first Multipath Movies, CYBERSWINE, POPEYE AND THE QUEST FOR THE
WOOLLY MAMMOTH, NIGHT OF THE WEREWOLF and THE HALLOWEEN PARTY to begin arriving
at retailers at the end of December, after the holiday selling season.
As a result of delays in the commencement of the shipment of personal computers
upon which the Company's products are bundled, the first Multipath Movie
bundles are now expected to begin shipment during the second quarter of 1998.
The delay does not affect the number of units to be shipped pursuant to a
three-year, multi-million-unit bundling relationship, but will impact
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the Company's 1998 revenues and earnings since users will not be equipped to
purchase on-line episodes over the Internet as early as expected.
Mark Dyne, Chairman and CEO of Brilliant, said "Despite production and
distribution delays, we commenced initial retail product shipments in late
December and look to substantially broaden distribution in retail and mass
market outlets, including video retailers, during 1998. We also anticipate
the commencement of shipments under our PC bundling relationship in the first
half of the year, creating a substantial base of PC users that will be able
to experience Multipath Movies on an installment basis through the Internet.
"Brilliant's internal Multipath Movie production efforts are now in full gear
with four Multipath Movie titles released to date, the completion this quarter
of our fifth internally developed title, GRAVITY ANGELS and over 25 episodes
in development, including titles based on SUPERMAN, XENA: WARRIOR PRINCESS
and ACE VENTURA. Importantly, we are achieving critical mass in our Multipath
Movie library. Our library of titles span a broad demographic group - ages
three to forty-five - and we are pleased that various titles have already
begun to receive good reviews.
"We are now focused on assuring that our products receive broad and timely
distribution and marketing support through a growing base of partnerships.
Given the variety of entertainment and production benefits provided by the
Multipath Movie format, we remain confident in our ability to successfully
position Multipath Movies as an entertainment product of choice for a range
of target audiences including PC gamers, Internet surfers and conventional
television and movie viewers."
Brilliant Digital Entertainment is the creator and producer of a unique new
generation of interactive digital entertainment called Multipath Movies.
Multipath Movies utilize Brilliant's proprietary software tools to produce
three-dimensional, digitally animated stories, each with hundreds of plot
alternatives that lead to multiple, distinct conclusions influenced by the
user. Multipath Movies, which combine the interactivity of computer games
with the plot and character development of feature films, are currently
distributed over the Internet and on CD-ROM and can also be produced for
distribution on television and home video.
Forward-Looking Statement Disclosure
With the exception of the historical information, the matters discussed above
include forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Act of
1934, as amended. Brilliant's estimate of the revenues that it expects to
report for the fiscal year and fourth quarter ended December 31, 1997 is a
forward looking statement that involves risks and uncertainties. The Company
has not completed its review of its fourth quarter results, and there can be
no assurance that, upon completion of this review, actual results will not be
materially different than those estimated. The statements above relating to
Brilliant's expectation of concluding distribution agreements covering foreign
territories and Brilliant's expectation that its bundled products will be
shipped
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by the end of the second quarter of 1998 are forward looking statements
that are subject to risks beyond the control of Brilliant. Distribution of
bundled products are subject to decisions made by other parties to agreements
with Brilliant and to technical issues not related to the Company's products
that may defer distribution schedules for the computers and other products
with which bundled Multipath Movies are distributed. Also, Brilliant's
ability to consummate foreign distribution agreements is subject to the
possibility of arbitrary decisions on the part of the proposed foreign
distributors and the possibility that remaining issues under negotiation
may not be resolved to the mutual satisfaction of the proposed parties. The
estimates contained herein speak only as of the Company's expectations as of
the date of this press release. The Company expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any such
statement to reflect any change in the Company's expectations or any change
in events, conditions or circumstances on which any such statement is based.
Actual results may differ materially due to a variety of factors. Information
about certain of these factors is contained in the Company's most recently
filed Form 10-QSB report and are available from Brilliant Digital
Entertainment's Investor Relations department and may be obtained by calling
or writing.
