Midway announced revised estimates for the Company's third quarter ended September 30, 2007, and fiscal year ending December 31, 2007. The changes are primarily to reflect Midway's decision to release Stranglehold for the Playstation 3 in the fourth quarter rather than the third quarter, the expected movement of Unreal Tournament 3 for Playstation3 into the first quarter of 2008, and lower expected sales of BlackSite: Area 51 primarily due to the adverse impact of the split shipment between Xbox 360 and Playstation 3, with the European version of BlackSite: Area 51 for the PLAYSTATION 3 system shifting into the first quarter of 2008.
The Company now expects third quarter revenue of approximately $39 million, as compared to the Company's previous estimate of approximately $50 million, and a net loss of $0.33 per basic and diluted share, compared to the Company's previous estimate of a net loss of approximately $0.23 per basic and diluted share. On a non-GAAP basis, the Company now expects a loss of approximately $0.27 per basic and diluted share, compared to the Company's prior estimate of $0.17 per basic and diluted share. A reconciliation of non-GAAP to GAAP guidance is provided in a table at the end of this press release.
For the year ending December 31, 2007, the Company now expects full year revenue of approximately $170 million, as compared to the Company's previous estimate of approximately $225 million, and a net loss of $0.85 per basic and diluted share, compared to the Company's previous estimate of a net loss of approximately $0.44 per basic and diluted share. On a non-GAAP basis, the Company now expects a loss of approximately $0.66 per basic and diluted share, compared to the Company's prior estimate of $0.27 per basic and diluted share. A reconciliation of non-GAAP to GAAP guidance is provided in a table at the end of this press release.
David F. Zucker, president and chief executive officer, commented, "While we regret that these delays will cause us to lose some valuable holiday sales in the near term as well as shift revenue for some of these titles out of 2007 and into 2008, we remain confident that our technology strategy and product plan position us to grow both revenue and market share as we move into the heart of this console cycle. Looking ahead to 2008, with our core technology platform now in place, we expect to release a number of titles, including already announced console versions of Unreal Tournament 3, a next generation installment of our NBA Ballers franchise, Wheelman, and TNA iMPACT! the video game. We also expect to release several as-yet unannounced titles such as next generation versions of our hit franchises Blitz and Mortal Kombat, and two exciting new ambitious open world games. We intend to give more details on our 2008 release schedule in the near future."
Mark Rein, vice president of Epic Games, was quick to post on their official forums that "As a public company, Midway felt an obligation to its shareholders to let them know about the possibility of a delay. Our goal is still to get the PS3 version of UT3 in stores before the end of 2007. However, we will only ship it once it's ready and is the best game we can deliver.
In addition there is some good news as a little extra time in development means that now the PS3 version will have all of the same maps as the PC version whereas we previously expected to ship a fewer maps on console.
The PC version is still on track for November with a downloadable demo to be made available prior to retail release."