Late Release Dates Cause Playlogic to Miss Expectations

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Playlogic Entertainment, Inc. announced today its results for the first nine months 2008, ended September 30.

Net revenues

For the first nine months, ended September 30, net revenues increased to $9.4 million, compared with $8.3 million in 2007, an increase of 13%. For the 3rd quarter of 2008 net revenues decreased to $1.1 million compared with $3.7 million in the 3rd quarter of 2007.

Gross profit

Gross profit for the first nine months of 2008 decreased $0.2 million to $4.6 million, compared with $4.8 million in the first nine months of 2007. For the 3rd quarter of 2008 gross profit showed $0.3 million compared with $2.0 million in the 3rd quarter of 2007.

Operating result

Operating result for the first nine months of 2008 showed a loss of $1.6 million compared with a profit of $0.4 million in the first nine months of 2007.  For the 3rd quarter of 2008 the operating result showed a loss of $2.8 million compared with a profit of $0.5 million in the 3rd quarter of 2007.

Due to a shift in game releases on multiple platforms from Q3/Q4 2008 to Q1 2009 the operating result for the 3rd quarter in 2008 turned from a profit into a loss. These games include titles such as Sudoku Ball Detective, Vertigo, Pool Hall Pro, and Age of Pirates 2: City of Abandoned Ships on Wii, DS and PC platforms.

As a precaution in today’s economic environment Playlogic is recording an extraordinary impairment for several games. Even though game sales are recession resistant management wants to be conservative by taking this impairment charge until the end of 2008. This extraordinary impairment of $1.0 million impacted the financial results.

Net Profit/Loss

Net profit for the first nine months of 2008 showed a loss of $2.0 million compared with a profit of $1.6 million in the same period of 2007. For the 3rd quarter of 2008 Playlogic made a net loss of $3.0 million compared with a profit of $2.0 million in the 3rd quarter of 2007.

EPS

Earnings per share for the first nine months showed a loss of $0.05 compared with a profit of $0.06 in the first nine months of 2007. For the 3rd quarter of 2008 earnings per share dropped to a loss of $0.07 compared with a profit of $0.07 in the same period in 2007.

Outlook 2008

For the full-year 2008 Playlogic expects net revenues in the range of $ 11.0 million and $13 million, compared with net revenue of $10.1 million for the full-year 2007. Net loss per share will be approximately $0.05 for the full-year 2008.

In : PC

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