Midway Results Show Continuing Losses

Midway has announced continuing losses in its most recent quarterly results, revealing revenues of just $27.4 million and a loss of $22.2 million for the period ended September 30th. There was also a slightly larger loss for the year predicted, as the company continued to rely on its forthcoming next-gen products such as Stranglehold for a major comeback. Overall, the 2006 third quarter revenues of $27.4 million compared somewhat poorly with 2005 third quarter net revenues of $29.5 million, though the $22.2 million loss was slightly better than the previous year's loss of $29.1 million. Midway's self-claimed 'highlights' for the quarter were the releases of titles including The Ant Bully for PlayStation 2, Nintendo GameCube, Game Boy Advance, and PC; Spy Hunter: Nowhere to Run for PlayStation 2 and Xbox; and The Grim Adventures of Billy & Mandy for PlayStation 2 and GameCube. For the key holiday quarter, Midway expects net revenues of approximately $86 million and a slim profit of approximately $2 million. It has already released Mortal Kombat: Armageddon for PlayStation 2 and Xbox, and Unreal Anthology for the PC, and expects to release Happy Feet (based on the family movie of the same name) for multiple platforms; The Grim Adventures of Billy & Mandy, Rampage: Total Destruction, and The Ant Bully for the Nintendo Wii; Blitz: The League for the Xbox 360; and Blitz: The League Overtime, Mortal Kombat: Unchained, and Rush for the PSP. Overall, for the year ending December 31, 2006, Midway continues to expect net revenues of $155 million, and but is revising its loss up to $73 million from $70 million, "primarily due to decreasing margins on current generation titles." Midway's CEO and President David Zucker commented of the upcoming releases: "Our fourth quarter line-up demonstrates both our genre and platform diversity. We expect that 2007 will show the fruits of our investment over the last several years in next generation technology and our sales and marketing infrastructure, and we continue to focus our efforts to position the company for revenue and market share growth in 2007 and beyond."