Mark Androvich
22:55 (BST)
01/11/2007
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Midway reports $33.5 million Q3 loss
Lowering outlook for fiscal year
Midway has released third quarter financial results showing a net loss of USD 33.5 million, a 50 per cent increase from last year's third quarter loss of USD 22.2 million.
Net revenues for Q3 were USD 36.7 million, up from USD 27.4 during the same period last year.
During the quarter, Midway released Stranglehold worldwide for the Xbox 360 and PC. The Xbox 360 version became a top-10 title in the UK for the five weeks following launch according to Chart Track as well as a top-10 selling Xbox 360 title in North America for September according to The NPD Group.
The PS3 version of Stranglehold shipped on October 29, with the European release to follow later this month.
"We are happy with the response to our first front-line next generation game, Stranglehold, and believe that it has provided a solid foundation to build our standardised toolset for all of our next generation titles," said Midway CEO and president David F. Zucker.
"Additionally, our commitment to our expanded direct presence in Europe has been validated with strong results for Stranglehold throughout the territory."
Midway expects net revenues of approximately USD 80 million for the fourth quarter, with a net loss of approximately USD 0.21 per basic and diluted share.
The company is lowering its financial outlook for the full year 2007 to reflect the movement of certain Nintendo Wii and DS titles out of this fiscal year as well as lower expectations for PS3 product sales due to delayed release dates.
For the fiscal year ending December 31, 2007, Midway now expects net revenues of approximately USD 160 million, with a net loss of approximately USD 0.95 per basic and diluted share.
"We remain confident that our technology strategy and product plan position us to grow both revenue and market share as we move into the heart of this console cycle," said Zucker.
"In the coming months, as we reveal more details on our strong line-up of new IP and major franchises for 2008, we expect to show investors how we plan to realize significant growth in 2008."
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