The company attributed the fall in revenue to to fewer titles released during the quarter (a total of eight titles) and the company's exit from the coin-operated games business. The numbers, however, point to the fact that the company's home videogame revenue also fell significantly, from $58 million to $40 million.
The net loss for the quarter was $2.7 million (7 cents per share), compared to a net loss of $3 million (8 cents per share) last year. Included in the results was a "provision to increase the allowance for doubtful accounts by $883,000 related to a major retailer seeking protection under bankruptcy laws" -- undoubtedly this reveals Midway's exposure to the Kmart bankruptcy.
For the quarter ending March 31, 2002, Midway said it expects to ship six games, it anticipates net sales of $33-$36 million, and expects a pre-tax loss of between $5.5-$7.0 million excluding a one-time charge associated with the "consolidation of administrative facilities from Corsicana, Texas".
The company expects to ship over forty games during calendar 2002, including Mortal Kombat: Deadly Alliance
, Freaky Flyers
, MLB SlugFest 20-03
, and Defender