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Conspiracy Entertainment Reports Strong Growth in Revenues and Net Operating Income in Q2 2008
Aug 29, 2008 (08:08 AM EDT)
LOS ANGELES, Aug. 29 /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 second quarter ended June 30, 2008. Details of the Company's quarterly results are available on Form 10-QSB filed at .
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Revenues for the three months ended June 30, 2008 increased 85% to $1,518,992 compared to $819,330 for the three months ended June 30, 2007. Net operating income was $139,459 in the second quarter of 2008 compared to $87,479 in the second quarter of 2007. Net income (loss) was $3,012,317, or $0.01 per diluted share, for the three months ended June 30, 2008 compared to $(418,023), or $(0.01) per diluted share, for the three months ended June 30, 2007. The increase in profitability was primarily due to a gain on the valuation of a derivative liability in the amount of $2,846,864 in the second quarter of 2008 compared to a loss of $425,965 for the three months ended June 30, 2007.
"Strong revenue growth in the second quarter of 2008 was primarily from our release of the flat fee title 'Garfield-World Lasagna Tour' and substantial reorders for 'Winter Sports' for the Wii," said Sirus Ahmadi, president of Conspiracy Entertainment. "The second quarter also strengthened our video game distribution and publishing agreements. We signed a deal with dtp entertainment of Germany to bring 'Summer Athletics' onto multiple gaming platforms in the third quarter. In addition, we expanded our existing relationship with leading European video games publisher, RTL games, by securing multiple new titles for distribution, sales and marketing in the US and Canada later this year."
Revenues for the six months ended June 30, 2008 were $4,759,858, an increase of 480%, compared to $819,330 for the six months ended June 30, 2007. For the six months ended June 30, 2008, Conspiracy reported net operating income (loss) of $247,498 compared to $(85,461) in the six months ended June 30, 2007. During the six months ended June 30, 2008 and 2007, the gain (loss) on the valuation of derivative liability was ($4,669,052) and $370,866 (as restated), respectively. As a result, Conspiracy reported a net income (loss) of $(4,472,637), or $(0.09) per diluted share, for the six months ended June 30, 2008 compared to net income of $106,184, or $0.00 per diluted share, for the six months ended June 30, 2007.
"Despite having to report a substantial loss in the valuation of derivative liability for the first six months of 2008, we achieved positive net income from operations compared to a net loss one year ago. Any weakening in the US economy is being offset by our ability to source titles from leading European developers. Our relationships overseas enable us to bring popular, next-gen gaming titles for distribution and marketing in established retail channels in North America and Mexico. With several titles slated for release in 2008, our sales momentum and net operating income should continue to show accelerated improvement through the second half of 2008," said Keith Tanaka, CFO of Conspiracy Entertainment.
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: Investor Relations Rick McCaffrey OTC Financial Network 781-444-6100x625 firstname.lastname@example.org http://www.otcfn.com/cpye
CONTACT: Rick McCaffrey, Investor Relations of OTC Financial Network for email@example.comConspiracy Entertainment, +1-781-444-6100, Ext. 625,
Web site: http://www.conspiracygames.com/