Southpeak losses narrow to $2.1m
Optimistic about 2011 but "no assurance" that recovery will be successful
Publisher Southpeak has revealed results for the second quarter of its fiscal 2011, announcing net revenues of $7.5 million.
This is a decline from $10.1 million for the same period in the previous year, but the firm did narrow its net loss from $2.6 to $2.1 million.
This later was largely due to operating expenses reducing by 37 per cent to $3.3 million, but remains the latest in a recent string of unprofitable quarters.
Southpeak observed that the current resolution of a legal battle with developer Nobilis over publishing rights to the My Baby series had been a highlight of the last quarter, and meant the firm could distribute My Baby First Steps.
Observed CEO Melanie Mroz, "In regaining our rights to the highly popular My Baby First Steps we experienced a significant legal victory. We capitalized upon this returning My Baby to the retail channel, where we hope to continue the phenomenal sales initiated by our innovative marketing and PR strategies.
"In addition, the quarter saw excellent progress as we look to the future and our digital strategy, which included the acquisition of an industry veteran to lead this important part of our business model. Furthermore, our operational strategy delivered positive changes including continued and substantial expense reductions, effectively aligning our cost structure with our anticipated revenue stream."
Also on the cards was a 'strategic relationship' with NVIDIA, intended to lead to phone and tablet releases. Commented chairman Terry Phillips, "We are thrilled by our new relationship with NVIDIA; we believe that they are an ideal partner as we head toward our goal of becoming a market leader in mobile and tablet gaming."
However, the firm's fiscal statement acknowledged that times remained hard: "While the Company is committed to pursuing options to continue to address its viability as a going concern, there can be no assurance that the Company's efforts will prove successful."