Midway Posts Larger Than Expected Q1 Loss, Lowers 2003 Guidance

Both revenue and loss increased over the same period last year, when Midway reported a $6.4 million loss on income of $31 million. The quarter ended March 31 saw the release of just one title, MLB SlugFest 20-04, which CEO Neil Nicastro described in today's conference call as “not terrific-selling.” Anticipating factors including lower sales on the Gamecube and the need to increase advertising during the critical fourth quarter holiday season, Midway lowered its fiscal-year guidance to $200 million in revenue from $230 million, while raising its projected net loss for the year from $7.6 million to $25.6 million. Midway’s stock promptly dropped 25 percent on the news to $3 in after-hours trading.