RICHARDSON, Texas--(BUSINESS WIRE)--February 11, 1997--7th Level, Inc. (NASDAQ: SEVL) continued to make progress with its cost reduction program and its focus on improving the production processes surrounding title delivery in the fourth quarter ended December 31, 1996. In September 1996, the Company implemented a broad cost reduction program as part of its plan to become cash flow positive and profitable. As a result, quarterly operating expenses have been reduced by more than $1 million on a sequential basis. Net loss for the fourth quarter declined 22% sequentially to ($5.6) million compared to ($7.2) million in the third quarter ended September 30, 1996. The Company said it plans to continue actions to reduce expenses during the first two quarters of 1997.

For the year ended December 31, 1996, net revenues increased 69% to $20.5 million compared to $12.2 million in the year ended December 31, 1995. Net loss was ($24.3) million or ($1.80) per share compared to a net loss of ($14.6) million or ($1.33) per share in the year ago period. For the fourth quarter ended December 31, 1996, net revenues were $6.3 million with a net loss of ($5.6) million or ($0.41) per share. Revenues would have been more than $7 million for...