Interplay Engages in Creative Accounting

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While it has seemed to the rest of the world that Interplay has been effectively dead for some time, Interplay has announced the results of its fiscal third quarter ended September 30, 2007.
For the quarter, Interplay reported net income of $497,000, compared to net income in the same quarter the previous year of $1.633 million. In both quarters, Interplay actually had a large operating loss, and then managed net income thanks to clever accounting and the sale of its few remaining assets.

Essentially, the net income comes from Interplay reversing outstanding accruals and accounts payable. Interplay does this when an account remains uncollected for more than three years. In other words, Interplay has owed certain parties money for more than three years, and since it has remained unpaid, Interplay has reversed the charge and that is creating the "income."

Interplay's Chairman and Chief Executive Officer Herve Caen claims that the company plans to rebuild its internal development studio and that it has hired Jason Anderson as the creative director of an unannounced massively multiplayer online game.

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This page contains a single entry by Editor published on November 13, 2007 3:26 PM.

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