Net revenues in the third quarter of 2006 totalled $17.6 million from continuing operations - this compared with a figure of $19.5 million for the same period last year.
The company's lower revenues have been attributed to declines in merchandise licensing revenues from more established properties, such as Yu-Gi-Oh and Teenage Mutant Ninja Turtles. Alfred Kahn, chairman and CEO, also pointed out that the firm did not realise any revenues in the quarter from the long-term extension of the Cabbage Patch Kids master toy agreement that was signed with Play Along, a division of Jakks Pacific.
"We look forward to 2007 when our promising new properties Viva Pinata and Chaotic are expected to be among the significant contributors to the company's revenues," said Kahn. "We should also benefit from the scheduled released of TMNT, the highly anticipated CG-animated movie featuring the Teenage Mutant Ninja Turtles. We further anticipate that significant savings from our cost-cutting initiatives will begin to impact the bottom line, beginning in the fourth quarter of 2006 and continuing into 2007.
"With $116.3 million in total cash and investments and no debt, we continue to be well situated to take advantage of opportunities to expand our content and distribution and build shareholder value."