LANGHORNE, Pa., Aug. 20, 2009 (GLOBE NEWSWIRE) -- eGames, Inc. (Pink Sheets:EGAM), a developer and publisher of games for the PC, game consoles and the Internet, today released preliminary financial results for its quarter and year ended June 30, 2009.
For the quarter ended June 30, 2009, the Company anticipates reporting: * Net revenues of $800,000; * Gross profit margin of 57%; and * Net loss of $600,000. For the year ended June 30, 2009, the Company expects to report: * Net revenues of $3,500,000; * Gross profit margin of 57%; and * Net loss of $1,700,000.
Included in the anticipated net loss for the quarter ended June 30, 2009 is a $420,000 non-cash charge to operating expenses for the write-off of the Company's intangible assets related to the fiscal 2006 acquisition of the Cinemaware video game properties. Excluding this non-recurring charge, the Company's fiscal fourth quarter preliminary net loss would have been less than $200,000.
During its fiscal fourth quarter, the Company continued cost reduction efforts by reducing its product development expense by approximately $260,000, or 52%, compared to the similar quarter a year earlier. Additionally, other operating expenses, (excluding the write-off of the Cinemaware intangible assets), decreased by approximately $100,000 or 20% compared to last year's fourth fiscal quarter.
At July 31, 2009, the Company had approximately $230,000 in cash, compared to $344,000 at June 30, 2009 and $516,000 at March 31, 2009. Considering the Company's net losses for the most recent quarters in fiscal 2009 and fiscal years 2008, 2007 and 2006, and the fact that eGames does not currently have access to a credit facility, the Company continues to evaluate its options to fund future operations.
Following the completion of its financial statement audit, the Company will issue a press release containing its audited financial results for the year ended June 30, 2009 on or about September 17th, 2009.
Comments:
"We were able to minimize our net loss during the current quarter by focusing our resources on our strongest product development projects. During the second half of fiscal 2009, Burger Island(r) for the Nintendo DS and Wii, as well as Puzzle City(r) for the Nintendo DS, shipped to various retailers through our relationship with Destineer, Inc. Our title Satisfashion(r) is also slated for release by Destineer on the Nintendo DS and Wii platforms during the holiday selling season. The Dracula Files, our newest title for the Internet and PC, is scheduled for release online in early October, with an early calendar 2010 retail release to follow," said Jerry Klein, President and CEO. "We expect to continue to enter into publishing, distribution and licensing agreements with the goal of expanding our game portfolio and presence onto console platforms, Internet game portals and at retail stores while riding out the current difficult economic conditions and retail environment."
About eGames, Inc.
eGames, Inc., headquartered in Langhorne, Pennsylvania, develops and publishes games for the PC, game consoles, Nintendo DS and Wii, iPhone and the Internet which include the eGames(tm), Cinemaware(r) and Cinemaware Marquee(r) brands. Additional information regarding eGames, Inc. can be found at http://www.egames.com.
Accessing Our Financial Information
Shareholders have three ways to access our financial and other information: by going to the Investor Relations page of the eGames website at www.egames.com, where shareholders can access our annual reports for fiscal 2008 and 2007, as well as press releases containing quarterly financial information for fiscal 2009, 2008 and 2007; by going to the Pink Sheets website at www.pinksheets.com and typing in our symbol "EGAM"; or by requesting a paper copy of financial information by contacting us by mail at eGames, Inc., 2000 Cabot Boulevard West, Suite 110, Langhorne, Pennsylvania 19047 to the attention of the Chief Financial Officer. Shareholders can also be placed on a list to receive press releases, as they are issued, via email by going to the following link on the eGames investor relations webpage: http://www.egamesonline.com/egames/investors/alert.asp.
Forward-Looking Statement Safe Harbor
This press release contains certain forward-looking statements, including without limitation, statements regarding: the anticipated date that the Company will issue a press release containing its audited financial results for the year ended June 30, 2009; the expected release date for Satisfashion on the Nintendo DS and Wii platforms; the expected release dates for the Dracula Files for the Internet and retail; the potential for publishing, distribution and licensing agreements entered into during the quarter and in the future to expand our portfolio and presence on other platforms, on portals and at retail; and the Company's efforts to evaluate future funding options. eGames cautions readers that the risks and uncertainties that may affect our future results and performance include, but are not limited to: continued overall economic problems in the United States and around the world that negatively affect consumer spending and retail markets; the potential failure of business partners with which we do business, including distributors, retailers, licensees and publishers; delays in the development and release of future titles; inability to fund continued development of future titles; technical and other issues that may delay or halt development of future titles; the failure of new titles to sell well or achieve retail placement; our inability to enter into and maintain commercially successful publishing, licensing and distribution relationships; and an increase in competition; as well as the risks and uncertainties discussed under the heading "Factors Affecting Future Performance" in our Annual Report for the fiscal year ended June 30, 2008 as posted on the Company's website and on www.pinksheets.com.
iPhone and App Store are trademarks of Apple Inc. Nintendo DS and Wii are trademarks of Nintendo.