Bam’s Sales Much Lower Than Forecast

Bam Entertainment Inc., a San Jose video-game software developer that went public in November, said fiscal third-quarter sales were significantly lower than forecast and that it has hired an advisor to help explore “strategic alternatives,” including a sale.

Sales in the quarter ended Sunday were $6.5 million to $8.5 million, down from Bam’s forecast of $18 million to $20 million.

The company cited delays in new products and lower-than-expected sales from new titles in the U.S. and Europe. Profit for the fiscal year ending June 30 is expected to be lower by an unspecified amount. In January, the company said it expected to be profitable in the fourth quarter and to have sales of $20 million to $22million.

Bam, which makes games for the Nintendo 64 and Sony PlayStation consoles, expects to post a loss for the quarter when it announces final results in early May. The company said it hired the Jefferies & Co. investment banking firm, and that it is in preliminary discussions with several parties, without being specific.

Bam shares fell $1.61, or 34%, to $3.09 on Nasdaq.