SouthPeak Reports Lower Sales, Slimmer Losses For Fiscal Q2

Midlothian, VA-based My Baby publisher Southpeak Interactive posted lower sales and narrower losses for its second fiscal quarter ended December 31. The company reported a 26 percent year-on-year drop in quarterly revenues to $7.5 million. SouthPeak attributed the decline to a 28 percent drop in the number of units shipped during the current fiscal year. Net loss for fiscal Q2 was $2.1 million, slimmer than the $2.6 million loss from the same quarter a year prior. SouthPeak chairman Terry Phillips said in a statement that during the quarter, the publisher made a "substantial investment" in the release of the Reality Pump-developed RPG Two Worlds II, which released in North America in January. SouthPeak is handling North American distribution and marketing of the game. Also in fiscal Q2, the publisher partnered with Nvidia on Android-based mobile games that use the Nvidia Tegra 2 chip. SouthPeak also noted that it won its court case against developer Nobilis over the rights to the My Baby franchise during the quarter. SouthPeak CEO Melanie Mroz called it a "significant legal victory." She added that "the quarter saw excellent progress as we look to the future and our digital strategy."