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Alliance Distributors Holding Inc. Reports September 30, 2012 Financial Results
Nov 29, 2012 (03:11 PM EST)
Also Reports Signing Publishing Agreements with Microsoft, Sony and Nintendo
NEW YORK, Nov. 29, 2012 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor of interactive video games and gaming products, today announced its financial results for its first quarter ended September 30, 2012.
Net sales for the first quarter in 2012 were $12.3 million, up 19% from the comparable 2011 period. Net income for the first quarter in 2012 declined to $16,000 from $46,000 in the first quarter of 2011. The decrease in net income reflects in part $125,000 in severance and related charges in connection with the previously announced outsourcing by the Company of its warehousing and fulfillment operations.
Jay Gelman, Chairman and Chief Executive Officer, said, "Year-over-year video game industry revenue continues to show a decline. We have been able to avoid significant downturns in our revenues by investing in value software and pursuing opportunities in key frontline software titles, and operations should increasingly benefit from the outsourcing we completed in the October. However, our results in the current quarter ending December 31, 2012 will be negatively impacted by business disruption from recent Hurricane Sandy.
"The first quarter also saw progress in our branching out into the publishing aspect of the video game business. Alliance Metaversal Studio LLC, our content development arm, signed publishing license agreements with Microsoft, Sony Computer Entertainment of America, and Nintendo of America. The addition of these rights to our iOS, Android, and Steam publishing rights gives Metaversal Studios platforms to publish offerings that may be made available to us from a wide variety of developers."
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc. (www.alliancedistributors.com), which does business as Alliance Distributors, is a full-service wholesale videogame distributor, specializing in gaming products and accessories for all key manufacturers and 3rd party publishers. Alliance Distributors offers support on: PS3®, PlayStation®Vita, PSP®, PS2®, Xbox 360® video game and entertainment system from Microsoft, Wii U, Wii, 3DS and DS, peripherals and software titles. Alliance develops downloadable and social content video games through Metaversal Studios (www.metaversalstudios.com), which it wholly-owns.
Certain statements contained in this press release contain forward-looking statements including without limitation, statements concerning our operations, economic performance, and financial condition. The words "estimate," "believe," "expect," "should" and "anticipate" and other similar expressions generally identify forward-looking statements, which speak only as of their dates.
Investors are cautioned that all forward-looking statements, which are based largely on our current expectations, involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including without limitation, risks associated with technological change, competitive factors and general economic conditions, including the related impact on discretionary consumer spending, changes in marketing and distribution strategies by manufacturers, continued shortages of new platform systems, timely development and release of video game products we produce, potential cost overruns in our development of video games, ability to protect our intellectual property rights, potential claims that we have infringed the intellectual property rights of others, market acceptance of games we develop, ability to realize anticipated benefits of acquisitions, potential undiscovered liabilities of companies that we acquire, changes in our business or growth strategy, the emergence of new or growing competitors, various other competitive and technological factors. There can be no assurance that the results referred to in the forward-looking statements contained in this release will occur. The Company has no duty and undertakes no obligation to update any forward-looking information, whether as a result of new information, future developments or otherwise.
Xbox, Xbox 360 and Xbox LIVE are either registered trademarks or trademarks of the Microsoft group of companies.
SOURCE Alliance Distributors Holding Inc.