ThirdMarioBro
11-04-2006, 10:03 PM
Midway Reports Q3 Losses
Don't worry, it's not a fatality just yet.
by Micah Seff
November 3, 2006 - Yet again, Midway Games has posted quarterly losses. The publisher's financial reports were released today, and much to stock holders' dismay, Midway announced that it had taken a loss of $22.2 million for the quarter ending September 2006. This was, however, an improvement over the same period last year during which Midway lost $29.1 million.
This year, revenues faltered with the company bringing in $27.4 million in its third quarter, a seven percent slip from last year's $29.5 million. Midway has blamed a decline in profit margins for the increase in its full-year net loss expectations to $73 million, up from the previously announced expected loss of $70 million.
Going into the final quarter of the year, Midway has high expectations because of recently released titles such as Mortal Kombat: Armageddon and Unreal Anthology. The company expects net revenues for the quarter ending December 2006 to reach $86 million and to attain a net income of $2 million for the same period.
Despite all of this doom-and-gloom, Midway remained optimistic. President and CEO David Zucker stated that Midway was "pleased to exceed [its] financial expectations for the third quarter."
Who here thinks they'll be gone within two years? Here's hoping they get all of their old games on the VC and XBLA before they get bought by EA.
Don't worry, it's not a fatality just yet.
by Micah Seff
November 3, 2006 - Yet again, Midway Games has posted quarterly losses. The publisher's financial reports were released today, and much to stock holders' dismay, Midway announced that it had taken a loss of $22.2 million for the quarter ending September 2006. This was, however, an improvement over the same period last year during which Midway lost $29.1 million.
This year, revenues faltered with the company bringing in $27.4 million in its third quarter, a seven percent slip from last year's $29.5 million. Midway has blamed a decline in profit margins for the increase in its full-year net loss expectations to $73 million, up from the previously announced expected loss of $70 million.
Going into the final quarter of the year, Midway has high expectations because of recently released titles such as Mortal Kombat: Armageddon and Unreal Anthology. The company expects net revenues for the quarter ending December 2006 to reach $86 million and to attain a net income of $2 million for the same period.
Despite all of this doom-and-gloom, Midway remained optimistic. President and CEO David Zucker stated that Midway was "pleased to exceed [its] financial expectations for the third quarter."
Who here thinks they'll be gone within two years? Here's hoping they get all of their old games on the VC and XBLA before they get bought by EA.