4Kids Losses Widens; Company May Get Buyer

Losses widened and revenues fell at 4Kids Entertainment during its latest financial quarter, the company said today. It also warned that its market capitalization has slipped below the minimum required by the New York Stock Exchange and that its shares could be delisted by the Exchange at any time.

Losses for the three months ended March 31 rose to $3.5 million from $2.0 million as revenues dropped to $4.2 million from $9.3 million. The company blamed the results on lower licensing and television advertising revenues.

The company's market capitalization has also dropped below $15 million. The New York Stock Exchange requires that companies maintain a capitalization of at least that much to remain listed on the Exchange.

4Kids also says it has received a "non-binding indication of interest" from a party interested in acquiring 4Kids, and that its board of directors has authorized management to give this party due diligence information regarding its assets and operations.

[Source: Market Watch]