Tiger Telematics $325 million in the hole
posted Sep 27th 2005 2:40PM
Most businesses aren't immediately profitable, we know that. You're very lucky if your startup—especially if it's a
tech startup—isn't in the hole for a number of years even after taking off (see:
TiVo). But according to an SEC filing on the
company we love to rib, Tiger Telematics
(makers of the Gizmondo portable game system),
the company lost $11.1, $8, and then $99 million dollars in 2002, 2003, and 2004, respectively. Ok, so that's a pretty
steep incline in losses—more than 10x in one year?—but, man, someone must have gone to town between January and June of
this year, because their operating losses for the first half of 2005 are already at $210 million. So basically to pull
this all together: Tiger's in the hole for $328 million with a faltering business model selling a perpetually
unsuccessful console competing against the PSP and
DS—and to add insult to injury, they're
licking their wounds with a continuing series of
self-aggrandizing press releases. Seriously, do we really
have to spell this out any more?
[Thanks, Brian]
what system is that a picture of?
That's the widescreen Gizmondo.
Please oh please stay in business long enough to release the widescreen Gizmondo...
So how long before I can buy one of those for $20, to put along side my(wait, I threw it out) game.com and maybe the Zodiac portable game system?
99 million in losses? How do you even get that much money to lose that much money? This is the first I have ever heard of the gizmodo, and I've seen a WonderSwan. :)
Gee, with games like "Momma, Can I mow the Lawn?", no wonder nobody is buying it. The game literally looks like something Penny Arcade thought of. Their "Colors" game looks like a complete ripoff of GTA.
Again, can't wait to get one on clearence for $20.
I'll be glad when that company doesn't show up on my Google Alerts "telematics" keyword... since they put out a press release every few hours. You shant be missed, Tiger Telematics.
Hey Brian when you know how to read SEC filings then you'll be qualified to make intelligent comments, but not before then. The write-offs do not mean cash but they are expensing research and development. Don't comment above your paygrade.
>Hey Brian when you know how to read SEC filings then you'll be
>qualified to make intelligent comments, but not before then. The
>write-offs do not mean cash but they are expensing research and
>development. Don't comment above your paygrade
Hey mis-informed,
Who said anything about cash, why don't you RTFA? The $325 Million plus in net losses are for the following, according the the SEC filing:
"General and administrative expenses for 2004 were $83,678,000 as compared to $5,582,000 in 2003, an increase of over $78,000,000. This increase can be attributed to highly elevated development activities as the Gizmondo approaches its release date. Personnel costs increased to over $20,000,000 (up from approximately $1,200,000 in 2003); consulting and other professional fees increased by $33,000,000 from 2003 amounts to over $34,000,000 in 2004; and direct R&D costs increased to over $27,000,000 from $3,000,000 in 2003. Expenses paid with common stock (non-cash) in 2004, included in the above amounts, increased to approximately $34,300,000 from approximately $300,000 in 2003. All of these specifically designated development costs were expensed as incurred and were not capitalized for financial reporting purposes."
I don't think the following is the type of "R&D" that can be "expensed":
"Tamela Sainsbury, the corporate secretary of Gizmondo Europe, is the co-habiting partner of Steve Carroll, a director of the Company. In 2004, Gizmondo Europe paid Ms. Sainsbury $149,844 in base compensation, other compensation and bonuses of $82,954 and provided her with a luxury automobile valued at $69,108 at the time of acquisition. In addition, in 2004 the Company issued Ms. Sainsbury a total of 160,681 shares of the Company's common stock valued at $467,213. Ms. Sainsbury's base compensation for 2005 is $192,777."
Just because they're funding their spending spree and lavish lifestyles by issuing common stock and it isn't necessarily cash doesn't mean it's monopoly money.
Sounds a lot like General Motors.
Brian, all that should have been explained in your original post. Investors expect huge write offs with start-ups. You did not reference the stock sales in your first post so most would assume it was a cash loss. But the girlfriend secretary windfall is ridiculous.
informed, stfu. nobody cares to read your patronizing posts. go take out your inferiority complex elsewhere.
Unbelievable. With figures like that how can they announce a version 2 Gizmondo before the first one is even released in the US. Like that won't totally kill what little sales they'll have. And in the EU the Gizmondo is invisible outside the UK. Nice try TT, but you are so out of touch with the market.
This company is so F****** dead. A 300 million dollar loss is unacceptable. IS this Tyco?
The gig is up.
http://gamesindustry.biz/content_page.php?aid=11845
This keeps getting more obvious by the moment. Tiger Telematics has all of the red flags for grand larceny and securities fraud written all over it. Tyco's Ebbers, Swartz, and Kozlowski might have some roomies soon in the form of Carrender, Freer et al.
Correction: WorldCom's Ebbers and Tyco's Swartz and Kozlowski.
Well said #11. Watching this company is so brutal, and yet, I can't look away. The bad of the ads for a reduced pricetag, to the worse of the horrible games add up to bankruptcy. Glad they figured it out this early in the game. But I know I'll still get one for $20 to add to my graveyard of failed consoles. Move over Sega Saturn.
I am just a small investor from London and since yesterday I lost 40% of my investment!!! Am still (stupidly???) holding to half of the shares and honestly don't know what to do. There was a very bad article about the directors/founders of the company last Friday in the London times and since then the stick just keeps falling. Anyone knows anything???? There are some rumours in London (everyone seems to be in that stock) that tiger is being bought out....but by whom and when, who knows. Presumebly this is just another lie.
Frankly the Gizmondo is a sad product. The games are the worst ever and the display is a bit blurrish. Tiger has paid enormous wages to themselves, so my guess is that Tiger management drains all the money from the company and then go bancrupt. Lets face it, it a brilliant idea! The Gizmondo is only a cover-up for investors placing BIG money in Tiger, money which will only drain out to the guys owning the company. Investors should know better...
A swedish newspaper had a piece about Gizmondo yesterday. The people behind are well known criminals! One of them (spent many, many years in jail for fraud and other crimes) got 2M£ last year in compensation. I don't know how they succeeded, but they have hijacked this company.
what system is that a picture of?
That's the widescreen Gizmondo.
Please oh please stay in business long enough to release the widescreen Gizmondo...
So how long before I can buy one of those for $20, to put along side my(wait, I threw it out) game.com and maybe the Zodiac portable game system?
99 million in losses? How do you even get that much money to lose that much money? This is the first I have ever heard of the gizmodo, and I've seen a WonderSwan. :)
Gee, with games like "Momma, Can I mow the Lawn?", no wonder nobody is buying it. The game literally looks like something Penny Arcade thought of. Their "Colors" game looks like a complete ripoff of GTA.
Again, can't wait to get one on clearence for $20.
I'll be glad when that company doesn't show up on my Google Alerts "telematics" keyword... since they put out a press release every few hours. You shant be missed, Tiger Telematics.
Hey Brian when you know how to read SEC filings then you'll be qualified to make intelligent comments, but not before then. The write-offs do not mean cash but they are expensing research and development. Don't comment above your paygrade.
>Hey Brian when you know how to read SEC filings then you'll be
>qualified to make intelligent comments, but not before then. The
>write-offs do not mean cash but they are expensing research and
>development. Don't comment above your paygrade
Hey mis-informed,
Who said anything about cash, why don't you RTFA? The $325 Million plus in net losses are for the following, according the the SEC filing:
"General and administrative expenses for 2004 were $83,678,000 as compared to $5,582,000 in 2003, an increase of over $78,000,000. This increase can be attributed to highly elevated development activities as the Gizmondo approaches its release date. Personnel costs increased to over $20,000,000 (up from approximately $1,200,000 in 2003); consulting and other professional fees increased by $33,000,000 from 2003 amounts to over $34,000,000 in 2004; and direct R&D costs increased to over $27,000,000 from $3,000,000 in 2003. Expenses paid with common stock (non-cash) in 2004, included in the above amounts, increased to approximately $34,300,000 from approximately $300,000 in 2003. All of these specifically designated development costs were expensed as incurred and were not capitalized for financial reporting purposes."
I don't think the following is the type of "R&D" that can be "expensed":
"Tamela Sainsbury, the corporate secretary of Gizmondo Europe, is the co-habiting partner of Steve Carroll, a director of the Company. In 2004, Gizmondo Europe paid Ms. Sainsbury $149,844 in base compensation, other compensation and bonuses of $82,954 and provided her with a luxury automobile valued at $69,108 at the time of acquisition. In addition, in 2004 the Company issued Ms. Sainsbury a total of 160,681 shares of the Company's common stock valued at $467,213. Ms. Sainsbury's base compensation for 2005 is $192,777."
Just because they're funding their spending spree and lavish lifestyles by issuing common stock and it isn't necessarily cash doesn't mean it's monopoly money.
Sounds a lot like General Motors.
Brian, all that should have been explained in your original post. Investors expect huge write offs with start-ups. You did not reference the stock sales in your first post so most would assume it was a cash loss. But the girlfriend secretary windfall is ridiculous.
informed, stfu. nobody cares to read your patronizing posts. go take out your inferiority complex elsewhere.
Unbelievable. With figures like that how can they announce a version 2 Gizmondo before the first one is even released in the US. Like that won't totally kill what little sales they'll have. And in the EU the Gizmondo is invisible outside the UK. Nice try TT, but you are so out of touch with the market.
This company is so F****** dead. A 300 million dollar loss is unacceptable. IS this Tyco?
The gig is up.
http://gamesindustry.biz/content_page.php?aid=11845
This keeps getting more obvious by the moment. Tiger Telematics has all of the red flags for grand larceny and securities fraud written all over it. Tyco's Ebbers, Swartz, and Kozlowski might have some roomies soon in the form of Carrender, Freer et al.
Correction: WorldCom's Ebbers and Tyco's Swartz and Kozlowski.
Well said #11. Watching this company is so brutal, and yet, I can't look away. The bad of the ads for a reduced pricetag, to the worse of the horrible games add up to bankruptcy. Glad they figured it out this early in the game. But I know I'll still get one for $20 to add to my graveyard of failed consoles. Move over Sega Saturn.
I am just a small investor from London and since yesterday I lost 40% of my investment!!! Am still (stupidly???) holding to half of the shares and honestly don't know what to do. There was a very bad article about the directors/founders of the company last Friday in the London times and since then the stick just keeps falling. Anyone knows anything???? There are some rumours in London (everyone seems to be in that stock) that tiger is being bought out....but by whom and when, who knows. Presumebly this is just another lie.
Frankly the Gizmondo is a sad product. The games are the worst ever and the display is a bit blurrish. Tiger has paid enormous wages to themselves, so my guess is that Tiger management drains all the money from the company and then go bancrupt. Lets face it, it a brilliant idea! The Gizmondo is only a cover-up for investors placing BIG money in Tiger, money which will only drain out to the guys owning the company. Investors should know better...
A swedish newspaper had a piece about Gizmondo yesterday. The people behind are well known criminals! One of them (spent many, many years in jail for fraud and other crimes) got 2M£ last year in compensation. I don't know how they succeeded, but they have hijacked this company.