Hip Interactive Reports Earnings, Opens UK Office

Officials from Hip Interactive have released results for the company’s first quarter of fiscal 2005, ended June 30. During this period sales rose by 1.5 percent to $81.2 million, and the company’s gross margin increased to 11.5 percent from 10.5 percent. At the same time, expenses increased to $8.2 million from $5.5 million for the same period last year. Net earnings were down to $100,000, or zero per basic and diluted share, compared with earnings of $1.5 million or three cents per basic and diluted share last year. The increase in expenses is largely due to the company’s various expansions, including the acquisition of Arush Entertainment, which was completed yesterday, and the announcement of a new UK office today. The new London office will handle distribution for all Hip Games and Hip Gear (accessories) product lines in that country. Source: Stockwatch