New York, NY (PressExposure) August 17, 2009 -- Zoo Entertainment, Inc., (ZOOE.OB), a leading international publisher and developer of interactive entertainment software reported financial results for the second quarter of fiscal 2009.
Second Quarter Fiscal 2009 Financial Results: As compared to the previous quarter and same period a year ago: â¢ Revenues for the quarter totaled $7.7 million, an increase of 40% from $5.5 million a year ago. Exclusive of distribution fees which we recorded in revenue, quarterly revenues were $8.5 million, a 56% increase over 2008. â¢ Net income totaled $2,000 or $0.0 per share, compared to a loss from continuing operations of $2.8 million or ($0.15) per share a year ago. The current period includes a gain on legal settlement of $4.3 million. â¢ Operating EBITDA (Earnings before Interest Taxes Depreciation and Amortization and non-cash compensation), a non-GAAP measure, totaled a loss of $2.9 million or ($0.08) per share, as compared to an operating EBITDA loss of $2.9 million or ($0.15) per share a year ago. A reconciliation of operating EBITDA to operating income is included at the end of this release.
Six Months Fiscal 2009 Financial Results: ● Revenues for the six months ended June 30, 2009 totaled a record $21.6 million, an increase of 49% from $14.5 million in the same period of 2008. Exclusive of distribution fees which we recorded in revenue, quarterly revenues were $24 million a 65% increase over 2008. â¢ Net loss totaled $1.4 million or ($0.04) per share compared to a loss from continuing operations of $6.3 million or ($0.35) per share in 2008. The current period includes a gain on legal settlement of $4.3 million. â¢ Operating EBITDA, a non-GAAP measure, totaled a loss of $2.8 million or ($0.08) per share, as compared to an operating EBITDA loss of $5.5 million or ($0.31) per share a year ago. A reconciliation of operating EBITDA to operating income is included at the end of this release.
"Our operating results for the quarter and six months are in line with our fiscal year business plan," said Mark Seremet, CEO of Zoo Entertainment, Inc. "Revenues, operating EBITDA and net income improved dramatically as our new business model took hold. Our focus on producing high quality casual games coupled with lower development and operating costs has resulted in higher sales and lower operating costs. As we continue to expand our gross margins through higher quality products, we expect our operating results to continue to improve commensurately. Our focus on higher margin products led us to discontinue lower margin games. We took a one-time non-cash amortization charge of approximately $400,000 in connection with such discontinued games. We more than doubled our units sold in this quarter to approximately 1.1 million units from approximately 500,000 units in the comparable period in 2008. Finally, we licensed the rights to the extensive catalog and intellectual property of Empire Interactive Europe Ltd., adding great franchises, such as Hello Kitty, Animal Paradise, and certain rights to the Big Mutha Truckers and FlatOut titles to our portfolio. As we anticipate releasing 25 new SKUs before the end of the year, we, therefore, enter the back-to-school and holiday selling seasons with a strong lineup and tremendous momentum."
Other Q2 Highlights: â¢ Shifted product mix in accordance with market demands from 33% Wiiâ¢ product in 2008 to 61% Wii product in 2009. â¢ Launch of 2BeeGames.com a unique community led site where independent developers from around the world submit their games, competing for cash prizes and the right to have their game published by Zoo. â¢ Broadened international reach by opening a direct European sales office staffed by the former Empire Interactive sales team. â¢ Significantly strengthened Balance Sheet by eliminating over $4.3 million of notes payable and other liabilities at face value as well as obtaining the agreement of convertible bond holders, subject to certain conditions, to convert debt into equity.