Midway revitalised as Q4 losses reduced

Midway games has reported a loss of US $2 million (EUR 1.5m) for Q4, a significant improvement over the US $37.8 million (EUR 28.8m) loss for the fourth quarter 2005.

Sales for the period were up 38.8 per cent from US $69.8 million (EUR 53.1m) in 2005 to US $96.9 million (EUR 73.8m) in 2006, with the company singling out Happy Feet, Blitz the League and Mortal Kombat as key performers.

For the full year, revenue was up 10.3 per cent to US $165.6 million (EUR 126.1m) in 2006, compared to US $150.1 million (EUR 114.3m) the previous year. The company reported a loss of US $77.8 million (EUR 59.2m), compared to a loss applicable to common stock in 2005 of US $112.8 million (EUR 85.9m).

David Zucker, CEO of Midway stated: "The fourth quarter of 2006 was a landmark quarter for Midway: our largest revenue quarter in seven years that included our largest initial ship-in for a single title, Happy Feet, the culmination of our marquee franchise Mortal Kombat on current generation systems; and the kick off of our next-generation releases with Blitz: The League on Xbox 360 as well as four Wii titles."

With a healthy portfolio of titles due in 2007, including new IP Stranglehold, Blacksite: Area 51, The Wheelman, The Lord of the Rings Online and Unreal Tournament 3, the company expects revenue growth of 36 per cent, to US $225 million (EUR 171.4m).

"Midway has made considerable progress since we embarked on our aggressive plan several years ago to revitalise the company," commented Zucker.

"We believe significant investment in building next-generation technology and tools, expanding our sales and marketing resources both domestically and internationally, and instilling a culture of quality and innovation throughout the company position Midway for the growth we are projecting for 2007 and beyond," he said.