Midway's Quarterly Revenues Decline Sharply

The company attributed the fall in revenue to to fewer titles released during the quarter (a total of eight titles) and the company's exit from the coin-operated games business. The numbers, however, point to the fact that the company's home videogame revenue also fell significantly, from $58 million to $40 million. The net loss for the quarter was $2.7 million (7 cents per share), compared to a net loss of $3 million (8 cents per share) last year. Included in the results was a "provision to increase the allowance for doubtful accounts by $883,000 related to a major retailer seeking protection under bankruptcy laws" -- undoubtedly this reveals Midway's exposure to the Kmart bankruptcy. For the quarter ending March 31, 2002, Midway said it expects to ship six games, it anticipates net sales of $33-$36 million, and expects a pre-tax loss of between $5.5-$7.0 million excluding a one-time charge associated with the "consolidation of administrative facilities from Corsicana, Texas". The company expects to ship over forty games during calendar 2002, including Mortal Kombat: Deadly Alliance, Freaky Flyers, MLB SlugFest 20-03, and Defender.