The company now expects revenues for the quarter ended June 30 to be between $28-$30 million with a pre-tax operating loss of between $11.5 and $12.5 million. Midway had earlier predicted $40-$50 million in revenues with a pre-tax operating loss of $5-$10 million. Midway lowered Q2 guidance due to the delay of Gravity Games Bike: Street. Vert. Dirt.
for the Xbox and the European releases of Red Card Soccer
for the Xbox and Gauntlet: Dark Legacy
for the GameCube. The company said that lower-than-expected sales of games launched late in the quarter also hurt its financial results.
For the year, Midway now expects revenues between $295-$310 million, and a pre-tax operating profit of between $25-$33 million. The Company previously provided full-year 2002 guidance of approximately $330-$340 million in revenues and $49-$54 million in operating profit. The fiscal year guidance was lowered due to the lower-than-expected Q2 as well as a delay in shipping Mortal Kombat: Deadly Alliance
and the cancelled production of Gravity Games Bike: Street. Vert. Dirt.
for the GameCube.
Midway also announced that the company intends to recruit a chief operating officer to support the company's operating plans.