Midway Posts $34.8 Million Quarterly Loss
Midway announced its second fiscal quarter results today, reporting a $34.8 million net loss for the three-month period that ended June 30, 2008. The shortfall represents a 143 percent increase year-over-year from the Q2 2007 loss of $14.3 million.
Revenue fell as well, dropping 26 percent year-over-year from $31.8 to $23.4. Despite the decreased performance, the figure beat Midway's own guidance, which projected revenue of $18 million.
For the fiscal quarter ending September 30, 2008, Midway expects to see a significant revenue increase to $52 million.
Second quarter sales highlights listed by the company included NBA Ballers: Chosen One, which launched worldwide for Xbox 360 and in North American for PlayStation 3, and the Xbox 360 version of Unreal Tournament III, which launched in Europe. During a conference call, company execs specifically singled out Unreal Tournament III as being a large contributor to the better-than-expected revenue figure.
Looking forward, the company is confident in its upcoming lineup, citing a positive E3 reception to Mortal Kombat vs. DC Universe and TNA iMPACT!, and pointing to other titles under development including Blitz: The League II as well as the casual products Game Party 2, Touchmaster 2, Mechanic Master, and MidwayArcade.com.
Said interim president and CEO Matt Booty, "At E3 this year, Midway showed that we have possibly our strongest holiday line-up in recent years."
In a conference call following the announcement, Booty spoke on Midway's recent decision to close Midway Studios Los Angeles in Moorpark and consolidate the studio into Midway Home Entertainment in San Diego.
"Our lease was coming due in our Moorpark location, but more importantly this move will enable teams to leverage synergies with our other development studios, and work more closely with third-party production, licensing, and quality assurance groups that are currently in San Diego," Booty explained, going on to note that the enlarged studio will also be able to take better advantage of the San Diego development talent pool.