Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Edward Wu – Wedbush Morgan.
Edward Wu – Wedbush Morgan
Good job on making progress towards getting back on track. It seems like you guys are putting out more titles in fiscal ’08 than you guys are doing in fiscal ’07. Does that imply more revenues per title, or is that the effect of having a lot of catalog sales in the prior year?
Gui Karyo
That is an interesting question. It is not easy to do a title-by-title comparison year over year, but certainly within 2007 there were things such as the continued catalog sales of Jaws and the sales of the DDR product that isn’t one for one matches to the products that were launched in 2008.
Operator
Your next question comes from John Taylor – Arcadia.
John Taylor – Arcadia
John, I wonder if you could give us what the accounts receivable reserves were that you have got on the books at the end of the year?
John Gross
You are talking about the reserve?
John Taylor – Arcadia
Yes. For markdowns, price protection, that sort of thing.
John Gross
Bear with me one second.
John Taylor – Arcadia
Okay, while you are looking for that, do you know offhand what your NOL stands at right now, your U.S. NOLs?
John Gross
Hold on a second, John. The allowances at the end of 2007 were $3.1 million and at the end of 2006 they were a little over $4 million.
The NOLs, there certainly will be more detail in the 10-K, but we can provide that offline.
John Taylor – Arcadia
I wonder if you can talk a little bit about the studio and the implications, I know you are working hard to keep fixed cash expenses in that range that you specified, but by the same token it sounds like your guidance is prior to that.
Can you bracket for us how much you are thinking the annual budget of the studio might look like this year or next year, a going run rate, in a little while?
Jesse Sutton
I will take a shot at it and maybe Gui can jump in afterwards, but basically the way that we are looking at it is this is really almost a swap-out of development costs that were external coming internally. So expenses for the studio that are related specifically to the production of specific games will end up showing up in the development cost area. Only those that would be considered R&D would show up down below in G&A.
- To read the full transcript on Seeking Alpha, click here »
