HONG KONG, Nov. 9, 2007 (PRIME NEWSWIRE) -- Hong Kong based Artificial Life, Inc. (OTCBB:ALIF), a leading full service provider of award winning mobile technology and applications, today announced its third quarter 2007 results.
Revenues for the quarter ended September 30, 2007 were $1,611,704 as compared to $189,697 for the quarter ended September 30, 2006 and as compared to $707,066 for the second quarter of 2007. The increase of revenues of $1,422,007 or 750% compared to Q3, 2006 and $904,638 or 128% compared to Q2, 2007, respectively, was mainly due to increased product license income from pre-installment deals for mobile handsets, one time downloads and monthly subscription revenues for our 3G games derived from mobile operators, resellers and hand set distributors and license fees for SMS Galaxy.
Revenues for the first nine months of 2007 were $2,684,458 as compared to $596,452 for the same period of 2006, an increase of 350%.
Income from operation for the third quarter of 2007 was $466,059 as compared to a loss from operation of $531,617 for the third quarter of 2006. The change from a loss from operation to income from operation was mainly due to the increase of revenues generated in the third quarter of 2007.
Net income for the quarter ended September 30, 2007 was $28,478 compared to a net income of $1,475,469 for the quarter ended September 30, 2006. The reduction of net income is mainly due however to a one time gain of $2,004,000 on the value of derivative stock option liabilities that was recognized in Q3, 2006.
The basic and diluted net income per share for the third quarter of 2007 was $0.00 as compared to basic net income of $0.05 and diluted net income of $0.04 for the quarter ended September 30, 2006.
The Company also announced the recent extension of sales channels and the signing of further distribution agreements with major resellers for the following territories: the United States, Mexico, Chile, Venezuela, Greece, and Hungary.
"In the third quarter of 2007 we have sold over 1.1 million of our 3G games -- as many as in the first half of the year. Hence, in the first nine months we sold over 2.2 million games around the world, a major increase over the 100,000 games sold by end of 2006. Most of the recent revenue growth is coming from our new clients and channels in Europe. We have also sold a first SMS Galaxy license to Swiss TV. We signed more distributors and operator/carriers and our direct distribution network has grown to 43 countries with over 100 active sales channels globally now. We expect to continue with this successful roll-out and global expansion strategy. We believe our current organic growth provides us with the means to expand our activities into even more territories and new mobile business fields as recently announced. We also currently evaluate potential strategic acquisitions in certain territories," said Eberhard Schoeneburg, CEO of Artificial Life, Inc.
About Artificial Life
Artificial Life, Inc. (OTCBB:ALIF) is a public U.S. corporation headquartered in Hong Kong with offices in Berlin (EMEA headquarters) and Tokyo. We are a leading global full service provider of award winning mobile technology, mobile TV, content, games and business applications (see also our Company's homepage: www.artificial-life.com; and our m-commerce portal: www.botme.com).
Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our future results of operations, financial condition and business prospects. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, our ability to obtain additional funding to operate and grow our business; the unproven potential of our mobile gaming business model; changing consumer preferences and uncertainty of market acceptance of our products; timely adoption and availability of 3G mobile technology; market acceptance for use of mobile handheld devices to play the interactive games; unpredictable mobile game development schedules; our reliance on a relatively small number of brands; our ability to license brands from others; our dependence upon resellers and telecommunication carriers and operators to distribute our products; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB filed on April 3, 2007. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.