SOURCE: Playlogic Entertainment, Inc.

May 23, 2006 12:32 ET

Playlogic Entertainment, Inc. Announces First Quarter 2006 Financial Results

Playlogic Shows Substantial Growth of Net Revenues

AMSTERDAM, THE NETHERLANDS -- (MARKET WIRE) -- May 23, 2006 -- Playlogic Entertainment, Inc. (OTCBB: PLGC) announced financial results for the fiscal 2006 first quarter, ended March 31.

For the first quarter ended March 31, 2006, net revenue climbed 440% to $2.7 million from $0.5 million the year before. The change in quarterly revenue is primarily attributable to the investments made in the previous years that have started to pay off in the first quarter. Most of the revenues came from new titles released on PlayStation2, Xbox and PC in both the US (34%) and Europe (66%).

Net loss from operations for the first quarter ended March 31, 2006, was $1.2 million versus $0.56 million the comparable year-earlier period. The higher loss is primarily due to higher selling, marketing, general and administrative expenses. These investments were made to ensure the continual growth and development of the company.

Earnings per share are $(0.05) for the first quarter 2006, compared to $(0.02) in the prior-year period.

The company is dedicated to substantially increase its net revenues for the balance of the year as a result of the planned releases. These include "Age of Pirates: Caribbean Tales," "Age of Pirates: Captain Blood," "Ancient Wars: Sparta," and "Infernal."

The company will continue to invest in its further growth by acquiring and publishing more high quality products.

About Playlogic:

Playlogic Entertainment, Inc. is an independent publisher of entertainment software for consoles, PCs, handhelds, mobile devices, and other digital media. Playlogic, established in early 2002, publishes game concepts across various genres. The company distributes its products worldwide through all available channels, online and offline.

Playlogic, who currently has approximately 75 employees, is listed on the OTC BB under the symbol "PLGC" and is headquartered in New York and Amsterdam. Its internal studio is based in Breda (The Netherlands).

Playlogic's portfolio includes games that are being developed by several teams at Playlogic Game Factory, Playlogic's in-house development studio based in Breda, as well as games developed by a number of studios throughout the world. Currently, 11 games on 16 platforms are under development, including "Age of Pirates: Caribbean Tales," "Age of Pirates: Captain Blood," "Ancient Wars: Sparta," "Infernal," and "Xyanide Resurrection," which will be published this year. "World Racing 2," "Knights of the Temple 2" and "Gene Troopers" have been released throughout Europe and will be released in the course of the year in the US.

Playlogic is always looking for additional, high-quality games and acquires products that can be exploited in the complete value chain of digital entertainment products from games at retail to mobile games and digital TV.

FORWARD LOOKING STATEMENTS

This release contains statements about Playlogic's future expectations, performance, plans, and prospects, as well as assumptions about future events. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, business and economic conditions and trends; fluctuations in operating results; reduced customer demand relative to expectations; competitive factors; and other risk factors listed from time to time in the company's SEC reports. Actual results may differ materially from our expectations as the result of these and other important factors relating to Playlogic's business and product development efforts, which are further described in filings with the Securities and Exchange Commission. These filings can be obtained from the SEC's website located at www.sec.gov Any forward-looking statements are based on information available to Playlogic on the date of this release, and Playlogic assumes no obligation to update such statements.

For further information about Playlogic please visit www.playlogicgames.com

Contact Information

  • FOR MORE INFORMATION
    Playlogic Entertainment, Inc.
    Esther Berger
    Corporate Communication & IR Manager
    T: +31 20 676 03 04
    E: Email Contact