Profitability Plan (catalysts)
1. $50 Annual Savings in SG&A expenses
2. Product development costs will be cheaper
3. Lower software amortization charges
4. Improved gross margins based around fewer units and higher selling prices (Ex. UFC cost me $59.99!)
FY 2010 Estimates compared to FY 2009
Q1 – Up; Q2 – Down; Q3/Q4 – Flat
FY 2010 Product Lineup
1. Red Action Gorilla (strong review with demo launch) 2. Darksiders
Proportion of Revenues
55% revenues off licenses, 45% revenue of personally owned
Product Categories
1.Fighting Games – Core/Top money maker, UFC and WWE
2.Kids Games – Aimed at Nintendo Wii/DS (new games will be Spongebob and CARS)
3.Family Games
Other Notes:
- UFC and WWE are two big games. Each will be heavily marketed; however, brands will not interconnect.
- UFC demo is in top 1% of all downloads for Microsoft Live!!!!!!!!!!
- 2010 will be profitable and has positive FCF.
- Secured $35 million credit line with Bank of America in case they need cash
- $141 million in cash/short-term investments as of March 31, 2009 (only declined $4 million and that was spent on restructuring costs, to improve operations).
- Short-term debt between $9-10 million (No long term debt)
- Working on launch with Shanda Interactive in China on Company of Heroes game. Shanda covered all investment and is waiting China government approval. (Revenues are not forecasted in numbers)
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