Midway’s Quarter 2 Losses

Revenue is down at Midway, but was expected.

Midway announced its second quarter earnings today, reporting decreased sales and net losses in line with expectations. For the three-month period ended June 30, 2006, Midway saw net revenues of $25.9 million, down from $36.9 million reported in the same period last year. The company’s bottom line remained fairly level over last year, though Midway is still in the red: Q2 net losses were $31 million, compared to $29.9 million in the previous second quarter.

Looking into the third quarter, Midway expects net revenues of approximately $24 million, with a net loss of approximately $23 million. For the full year, Midway expects revenues of $155 million and net losses of $70 million. Midway’s roster for the remainder of the year includes Ant Bully, Spy Hunter: Nowhere to Run, Mortal Kombat: Armageddon, and the penguin-filled Happy Feet. 

“We are continuing to position Midway to succeed in the next console cycle,” commented Midway president and CEO David F. Zucker, “and we believe we have demonstrated to gamers and investors at this year’s E3 conference that we have a strong line-up both short term, with upcoming releases of Mortal Kombat, Spy Hunter, Happy Feet, and Blitz: The League for Xbox 360 and PSP, as well as longer term for next generation and PC markets with Stranglehold, Unreal Tournament 2007, The Lord of the Rings Online, and The Wheelman. We continue to believe that 2007 will show our true potential and the reemergence of Midway as a top tier video game publisher.”

justin_hazlett2001@yahoo.com'

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Justin – who has written posts on NintendoFuse.