Game publisher Zoo Entertainment (IndiePub Games) has posted financial results for the second quarter of the 2011 fiscal, showing a sharp decline in revenues and significant losses compared to the last fiscal year.
The company put the results down to
its recent transition to full digital distribution, which Mark Seremet, CEO of Zoo Entertainment, described as "rough" -- although he did note, "we remain very optimistic about our future and are ready to fully expand our new digital business."
He noted that the results were "largely in line with our expectations," and said that the launch of the company's first iOS and Android title,
Kona's Crate, had been strong with more than 150,000 downloads.
The financial results also cited a number of abandoned games that were in development for multiple platforms, including two Nintendo 3DS games, as a reason for the poor results.
For the quarter ended June 30, 2011, Zoo Entertainment's revenues decreased 63 percent to $3.7 million compared to $9.8 million in the same quarter of 2010.
Net loss for the second quarter was $10.1 million, compared to a loss of $965,000 year-on-year.
Zoo may be running into more financial trouble soon, as
a recently filed class-action lawsuit on behalf of the company's stockholders accuses the company's executives of issuing "materially false and misleading statements" to investors.
