Midway announces Q3 financial results, revised forecasts

Chicago-based Midway Entertainment has announced its Q3 financial results, which show net losses in line with the company's recently revised guidance on both the quarter and the full fiscal year results.

Net revenue is posted at USD 30 million, but the company's net loss for the quarter is expected to be USD 29 million - USD 10 million higher than its August guidance suggested.

Attributing the larger than expected losses to "several factors including accelerated amortization and writedowns of capitalized product development costs primarily associated with both third quarter and fourth quarter releases," Midway is revising its guidance on results for the fiscal year ending December 31st.

Midway expects net revenues of USD 145 million (a drop from the USD 200 million previously forecast) for the full fiscal period, with net losses of USD 95 million, compared to earlier forecasts of USD 60 million. The revised outlook follows lower than expected sales of titles including The Suffering: Ties That Bind and L.A. Rush, as well as a change in the release date of certain titles, which will now enter the 2006 fiscal period.

President and CEO, David F. Zucker, commented: "While we are disappointed with sales of some of our products this year, we continue to be excited about the progress we are making on, and the prospects for, our 2006 and 2007 products. We believe that our recent financing has provided the flexibility and financial resources to meet our goal of developing high-quality games with better game concepts as we move through the upcoming console transition."

"We expect to further expand our product portfolio by leveraging established franchises, creating new owned properties, and building new relationships with licensors," he added.