Tiger losing money paw over fist
[UPDATE]Company planning to get its stock listed on NASDAQ exchange, reiterates US Gizmondo launch in time for Christmas.
[UPDATE] After yesterday's annual report to the SEC, Tiger Telematics today announced that it is rushing to finish up its Form 10Q report, which will then let the company file for trading on the NASDAQ listed exchange. The company also reiterated its intention to launch the Gizmondo in the US by the end of the year.
"We are gearing up our inventory as a result of an unexpected surge in sales," said Carl Freer, co-founder and Chairman, Tiger Telematics. "We also need product in the USA for our upcoming launch in time for the Christmas season. Recent updates from our manufacturers allow us to expect to have Gizmondos available to meet the increasing demand." [END UPDATE]
History teaches that the console-manufacturing business is not for the faint of heart. Just ask Sega, NEC, or Atari. So when Floor Décor, Inc. left the historical flooring business behind to focus its efforts on the gaming sector and the launch of its Gizmondo portable, it likely had some idea what it was getting into. But according to Tiger's annual report to the SEC, filed earlier this week, it wasn't enough of an idea.
"The company had difficult years in 2004, 2003 and 2002 due to extremely challenging industry conditions and high development costs associated with developing the Gizmondo," the filing states. Those tough years represent net losses of $99 million, $8 million, and $11.1 million, respectively.
This year doesn't look much rosier, as the company racked up operating losses of more than $210 million through June, due in large part to development costs for the Gizmondo. Last week the company announced that it was developing a widescreen version of the Gizmondo to be unveiled at the Consumer Electronics Show in Las Vegas next January. While the standard system has not yet been released in the US, the filing indicated that the company still plans to have it on American shelves by the end of 2005.
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