LANGHORNE, Pa., April 30, 2010 (GLOBE NEWSWIRE) -- eGames, Inc. (Pink Sheets:EGAM), a developer and publisher of casual games for leading social networks, the PC, game consoles and the Internet, today released preliminary financial results for the three and nine months ended March 31, 2010.
For the three months ended March 31, 2010, the Company anticipates reporting:
- Net revenues of $1,100,000;
- Gross profit margin of 60%; and
- Net income of $20,000.
For the nine months ended March 31, 2010, the Company expects to report:
- Net revenues of $2,850,000;
- Gross profit margin of 60%; and
- Net income of $35,000.
The Company completed a private placement on March 19, 2010 in which eGames received a total of $500,000 in gross cash proceeds in exchange for 1,000,000 shares of restricted eGames Common Stock and a three-year Warrant to purchase 1,000,000 shares of eGames Common Stock at an exercise price of $0.80 per share. The Company intends to use the net cash proceeds from the private placement to fund product development of future game titles for social networks and for general working capital requirements. At March 31, 2010, the Company had approximately $859,000 in cash, compared to $344,000 at June 30, 2009.
The Company will issue a press release containing its final financial results for the three and nine months ended March 31, 2010 on or about May 12, 2010.
Comments:
"The continuing solid performance of our titles at North American retail stores, combined with an improved gross profit and reduced operating expenses, are factors that we continued to build upon during the third quarter of the fiscal year," said Jerry Klein, President and CEO. "While we continued to reduce development expenses, we have been directing our development efforts towards games aimed at the fastest-growing segment of the video game market, the social network market," Klein said.
"We recently launched our first social game application, Burger Island®, on Sonico, the Latin American social network that helps people organize their lives online, and on the Orkut® online community, the leading social network in Brazil. In the coming weeks we also expect to launch Burger Island on Latin America-targeted MySpace and hi5 websites, both leading Latin American social networks. Burger Island was developed in conjunction with our partner, Brazil-based Techfront Studios. Burger Island is our first social network game, based on the award-winning downloadable casual game of the same name. We are truly excited about the possibilities that these new markets represent for eGames. Our recent retail success and private placement has enabled us to fund our progress in expanding our games into the social networking markets, and we are hopeful that the combination of a strong retail presence and an aggressive online strategy will strengthen our outlook for the future," Klein stated. "Our plan is to launch four more social games in the Latin American social network market during the remainder of 2010, which will put us in the forefront of development of the social game market in that region, while leveraging our TechFront relationship and development capacity in Brazil."
About eGames, Inc.
eGames, Inc., headquartered in Langhorne, Pennsylvania, develops and publishes casual games for leading Social Networks, the PC, Nintendo DS and Wii, iPhone, and the Internet including The Dracula Files, Burger Island®, Burger Island 2: The Missing Ingredient, Satisfashion®, Purrfect Pet Shop®, and more. Additional information regarding eGames, Inc. can be found at http://www.egames.com/">http://www.egames.com.
Orkut is a registered trademark of Google, Inc. iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. Nintendo DS and Wii are registered trademarks of Nintendo. All other trademarks are the property of their respective owners.
The eGames, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7123
Forward-Looking Statement Safe Harbor
This press release contains certain forward-looking statements, including without limitation, statements regarding: our intention to use the net cash proceeds from the private placement to fund product development of future game titles for social networks and for general working capital requirements; our plan to launch Burger Island on Latin America-targeted MySpace and hi5 in the coming weeks; our hope that the combination of a strong retail presence and an aggressive online strategy will strengthen our outlook for the future; and our plan to launch four more social games in the Latin American social network market during the remainder of 2010 which will put us in the forefront of development of the social game market in that region. The Company cautions readers that the risks and uncertainties that may affect the Company's future results and performance include, but are not limited to, delays in the development of future titles; inability to fund continued development of future titles; technical and other issues that may delay or halt development of future titles; competition in the social gaming market; the failure of new titles to sell well or be used by consumer on social networks; our inability to enter into and maintain commercially successful publishing, licensing and distribution relationships; and an increase in worldwide competition in the overall videogame market; as well as the risks and uncertainties discussed under the heading "Factors Affecting Future Performance" in the Company's Annual Report for the fiscal year ended June 30, 2009 as posted on the Company's website and on www.pinksheets.com.