SCi Reports $61 Million Year-End Loss
Game publisher Eidos Interactive [http://games.sci.co.uk/corporate/], reported a $61 million loss in its 2006-2007 fiscal year.
Revenues for the 12 month period ending June 2007 were $291 million, down from $398.5 million the previous year. According to the company's report, the revenue reduction was primarily the result of poorly-timed product launches and lower prices on previous-generation hardware, which the company ascribes to "the hardware transition in the videogames market."
Jane Cavanagh, SCi Chief Executive, said, "Despite the challenges posted in a hardware transition year the Board has continued to focus on the objective of building long-term value. We have made significant investments in the year to increase and broaden our product pipeline, improve the long-term efficiency of our development studios and grow our New Media business. We have the strongest portfolio of products moving forward in the history of the company."
The PlayStation 3 [http://www.playstation.com]was an area of particular concern for SCi, which set aside an $8 million provision against its expenditure on PlayStation 3 development costs. The company also called for further PlayStation 3 price cuts to spur growth of the user base, saying, "The Board continues to believe in the long-term commercial success of PlayStation 3 but believes this may take more time than originally forecast by Sony. The Board is of the opinion that the key driver to the acceleration of the installed base of PlayStation 3 will be a further hardware price cut."
A potential buyout of the company is also addressed in the report, confirming numerous "approaches and discussions" that have occurred since a September 4 announcement of a possible offer. "There remains no certainty that any offer for the Company will be made or as to the terms of any such offer were one to be made," the report said. "A further announcement will be made in due course."
SCi's full year-end report is available here [http://www.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=50912542350104&ir_client_id=3144].
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Game publisher Eidos Interactive [http://games.sci.co.uk/corporate/], reported a $61 million loss in its 2006-2007 fiscal year.
Revenues for the 12 month period ending June 2007 were $291 million, down from $398.5 million the previous year. According to the company's report, the revenue reduction was primarily the result of poorly-timed product launches and lower prices on previous-generation hardware, which the company ascribes to "the hardware transition in the videogames market."
Jane Cavanagh, SCi Chief Executive, said, "Despite the challenges posted in a hardware transition year the Board has continued to focus on the objective of building long-term value. We have made significant investments in the year to increase and broaden our product pipeline, improve the long-term efficiency of our development studios and grow our New Media business. We have the strongest portfolio of products moving forward in the history of the company."
The PlayStation 3 [http://www.playstation.com]was an area of particular concern for SCi, which set aside an $8 million provision against its expenditure on PlayStation 3 development costs. The company also called for further PlayStation 3 price cuts to spur growth of the user base, saying, "The Board continues to believe in the long-term commercial success of PlayStation 3 but believes this may take more time than originally forecast by Sony. The Board is of the opinion that the key driver to the acceleration of the installed base of PlayStation 3 will be a further hardware price cut."
A potential buyout of the company is also addressed in the report, confirming numerous "approaches and discussions" that have occurred since a September 4 announcement of a possible offer. "There remains no certainty that any offer for the Company will be made or as to the terms of any such offer were one to be made," the report said. "A further announcement will be made in due course."
SCi's full year-end report is available here [http://www.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=50912542350104&ir_client_id=3144].
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