SOURCE: Playlogic Entertainment, Inc.

December 21, 2006 14:13 ET

Playlogic Entertainment, Inc. Files Restated Results

AMSTERDAM, THE NETHERLANDS -- (MARKET WIRE) -- December 21, 2006 -- Playlogic Entertainment, Inc. (OTCBB: PLGC) today filed its reviewed financial results for the third quarter, ended September 30, 2006. The results remain in line with Management's expectations.

The Company also filed its restated financial results for the fiscal year 2005 and the restated financial results for the fiscal 2006 first and second quarter. The restatements have the effect of increasing total current liabilities by $0.6 million and increasing the stockholders' deficit by the same amount as of December 31, 2005.

The results for the three and nine months ending September 30, 2006 as follows are different from the unreviewed results filed by the Company on November 20, 2006.

Revenues Q3 2006

Net revenue was $1.5 million for the third quarter ended September 30, 2006, compared to $0.5 million for the three months ended September 30, 2005. This represents an increase of $1.0 million, or 170%, which is mainly due to the release of "Age of Pirates: Caribbean Tales" for the PC platform.

For the nine months ended September 30, 2006, net revenue climbed significantly to $4.6 million from $1.3 million the year before. The increase of $3.3 million, or 260%, in revenue is primarily attributable to the release of four new games and partly due to the revenues derived from the development contract between Playlogic and Sony.

Gross Profit Q3 2006

Gross profit for the three months ended September 30, 2006 was $0.8 million. Gross profit totalled $0.3 million in the comparable year-earlier period. This represents an increase of 137%.

For the nine months ended September 30, 2006 gross profit was $2.0 million, compared to $0.9 million the previous year. This represents an increase of $1.1 million or 114%, due to the increase in revenues.

Net Loss Q3 2006

Net loss for the third quarter ended September 30, 2006 was $4.6 million versus $1.3 million the comparable year-earlier period. For the nine months ended September 30, 2006 net loss was $8.5 million, compared to $4.0 million the same period the year before.

The net losses are higher, primarily due to an additional one-time interest expense of $1.9 million and furthermore to continued investments in the expansion of our games software line-up and higher selling & marketing costs.

"We are glad we accomplished the transition to an audit firm of the size and reputation of Rothstein Kass during the 3rd quarter of 2006. During the transition we determined that we had to restate our previously issued Financial Statements in order to fully comply with the US Generally Accepted Accounting Principles. Although the accumulated impact on Shareholders' Equity is very limited ($0.6 million) I am glad we corrected our financial statements as transparency of our reporting and our integrity are paramount to our values.

"As we continue to hit significant milestones in the execution of our business plans, such as extension of the contract with SONY and an agreement with Eidos for the global distribution of 'Infernal' and 'Ancient Wars: Sparta,' and making significant investments in our organizational infrastructure we are well prepared and on track to maximize our potential from the impressive games line-up we are building and consequently realize our aggressive growth targets," said Willem M. Smit, CEO.

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 a number of studios throughout the world as well as games developed by several teams at Playlogic Game Factory, Playlogic's in-house development studio based in Breda. Currently, 10 games on 13 platforms are under development, including "Age of Pirates: Captain Blood," "Ancient Wars: Sparta," "Infernal," "Xyanide Resurrection" and the "Red Bull Break Dance Game."

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