Midway Q1 in line with expectations

Publisher's revenues, losses both growing as company prepares for next generation of consoles.

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Midway Games released its first-quarter financial results today, operating at a loss for the 12th time in the last 13 quarters. For the three-month period ended March 31, Midway brought in $15.4 million in revenue (an 11 percent increase over the same quarter from 2005), but put up a net loss of $22.6 million.

Midway CEO and president David F. Zucker said in a statement that the company was making progress toward its objectives for the year, noting that it met its guidance for the quarter as well as analyst expectations.

"Although 2006 continues to be a transition year for the industry, we are committed to showing modest revenue growth in spite of the overall industry downturn," Zucker said. "We are focused on our goal of increasing our market share early in the new console cycle. To that end, we are concentrating our resources on developing what we believe will be some of the best technology and highest-potential intellectual properties in the industry for the next generation consoles."

With the industry expected to continue its slump this quarter, Midway's expecting its own numbers to follow suit. For the three months ending June 30, Midway is projecting $32 million in losses on $25 million in revenues. For its second quarter last year, Midway posted a loss of $29.9 million and $36.9 million in revenues. The company's key titles for the quarter include Rampage: Total Destructions, the PC real-time strategy game Rise & Fall: Civilizations at War, and MLB Slugfest 2006.

With the Wii and PlayStation 3 slated for release later in the company's fiscal year, Midway is expecting its business plan to start yielding results and for its losses to slow. For the year, it is expecting total revenues of $155 million, and a net loss of $66 million.

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