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Conspiracy Entertainment Reports Revenues of $3.2 Million and Operational Net Profit of $108,038 in Q1 2008
May 21, 2008 (08:05 AM EDT)
LOS ANGELES, May 21 /PRNewswire-FirstCall/ -- Conspiracy Entertainment http://www.sec.gov ("Conspiracy"), a developer, publisher and marketer of interactive entertainment software in North America and Western Europe, announced today its financial results for the first quarter ended March 31, 2008. Details of the Company's quarterly results are filed and available on Form 10-QSB at .
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Revenues for the three months ended March 31, 2008 were $3,240,866, compared to $0 for the three months ended March 31, 2007. In the first quarter of 2008, Conspiracy released five (5) new titles as well as received reorders for titles released in the second half 2007. In the first quarter of 2007, Conspiracy had one title ready for release, but per the request of the distributor, it was delayed until the second quarter of 2007.
Gross profit for the three months ended March 31, 2008 was $790,854, compared to $0 for the three months ended March 31, 2007. For the three months ended March 31, 2008, operating expenses totaled $682,816 as compared to $172,940 for the three months ended March 31, 2007. Conspiracy reported net income (loss) from operations of $108,038 in the first quarter of 2008 compared to $(172,940) reported in the first quarter of 2007. Other income (expense) totaled $(7,592,993) for the three months ended March 31, 2008 compared to $727,615 for the three months ended March 31, 2007. Of this total, an expense of $7,515,916 was attributed to the recalculation of the Company's derivative liability, which was a direct reflection of an increase in share price. As a result, the Company reported a net income (loss) of $(7,484,955) for the three months ended March 31, 2008 compared to $524,207 for the three months ended March 31, 2007.
"We are focused on bringing to market family-oriented, classic arcade and licensed cartoon titles to serve the rapidly growing casual gaming market. New titles released in the first quarter were Best of Tests, Biathlon, Cocoto Magic Circus, and Octomania in the U.S. and Counterforce in Europe. During the quarter, we continued to establish our reputation as an agile game publisher for the top-selling platforms of 2007, including the Nintendo DS and Wii," said Sirus Ahmadi, president of Conspiracy Entertainment. "Throughout 2008, we plan to introduce multi-platform new releases for Sony's Playstation 2, Sony's Playstation 3, Sony's PSP, Nintendo DS, Microsoft's XBox360, in addition to titles for the Nintendo Wii. This diversified strategy should continue our sales momentum throughout 2008."
"Despite an increase in staff, professional fees and SG&A expenses to support the release of five titles in the first quarter, we achieved operational profitability. Our net income from operations increased by over $275,000 to $108,038, a dramatic turnaround from an operational loss just one year ago. The net loss for the quarter was entirely attributed to the recalculation of our derivative liability. Excluding this adjustment, our net income for the quarter would have been close to breakeven," said Keith Tanaka, CFO of Conspiracy Entertainment. "We remain very optimistic that sales momentum will continue to improve our operational income and profitability as we execute on several new product development and distribution agreements in the second quarter of 2008."
About Conspiracy Entertainment Corporation
Conspiracy Entertainment Corporation is a developer, publisher and marketer of entertainment software in North America and Western Europe. The Company develops and licenses properties from several sources, including global entertainment and media companies and publishes software for DVD media, wireless devices, personal computers and video game consoles, including those manufactured by Nintendo, Sony Computer Entertainment, Inc., and Microsoft Corporation. Conspiracy Entertainment was founded in 1997 and is based in Santa Monica, CA. For more information, visit http://www.conspiracygames.com/ .
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Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a "Safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
CONTACT: Rick McCaffrey, Investor Relations, +1-781-444-6100, ext. 625, email@example.com, for Conspiracy Entertainment
Web site: http://www.conspiracygames.com/ http://www.otcfn.com/cpye/