Dutch publisher Playlogic has reported a $3.39 million net loss for the first half of FY 2009 – and admitted that it may struggle to continue as a going concern.
The net loss compared unfavourably year-on-year, way down from the $1.04 million profit posted in H1 2008.
For the six-month period to June 30th, Playlogic reported total sales of $4.68 million, down 43 percent from a year before.
In an SEC filing, the firm reported that, of June 30th, 2009, it had an accumulated deficit of approximately $63.5 million, and that during the preceeding six months, it had incurred ‘negative operating cash flows of approximately $8.0 million.
It continued: ‘These circumstances raise uncertainties about the Company's ability to continue as a going concern.'
It added: ‘While the Company has contracts in place with several third-party developers and is developing titles through its Playlogic Game Factory B.V. subsidiary, and anticipates successful debuts of such titles; the market for interactive entertainment software is characterized by short product lifecycles and frequent introduction of new products. Many software titles do not achieve sustained market acceptance or do not generate a sufficient level of sales to offset the costs associated with product development. A significant percentage of the sales of new titles generally occur within the first three to six months following their release. Therefore, the Company's profitability depends upon the Company's ability to develop and sell new, commercially successful titles and to replace revenues from titles in the later stages of their lifecycles. Any competitive, financial, technological or other factor which delays or impairs the Company's ability to introduce and sell the Company's software could adversely affect future operating results.'
For its three-month Q2 to June 30th, Playlogic – best known for its Obscure and Pool Hall Pro titles – reported sales of $3.47 million, down 20 percent from the same quarter in 2008.
Net loss for the period was $1.64 million, down from a profit of $344,057 for the comparable quarter a year prior.
Playlogic owns UK sales, marketing and distribution firm PlayV.