Midway acquires Surreal Software
Midway Games raises its revenue guidance for Q1 2004 and announces the acquisition of Surreal Software.
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Midway Games has today raised its revenue guidance for the first quarter of this year and has also announced its acquisition of developer Surreal Software. Strong initial sales of the developer's latest title, The Suffering, are the primary reason for Midway's improved financial outlook. Midway acquired privately held Surreal Software in an all-stock transaction for 540,317 Midway common shares. A further 137,199 restricted shares have also been issued to key Surreal employees as retention incentives.
For the quarter ended March 31, Midway expects revenues of approximately $18 million--50 percent more than its previous guidance of $12 million. Midway expects its net loss for the quarter to be less than its previous guidance of $19 million but has stated that the change will not be proportionate to the increase in its revenue guidance.
"The positive market reception to The Suffering illustrates our ability to successfully develop and release entirely new properties that resonate strongly with the growing audience of sophisticated, mature gamers," said David Zucker, president and CEO of Midway Games. "The acquisition of Surreal Software Inc., the visionary developer behind The Suffering, strengthens our internal product development team and reinforces our ability to create high quality games."