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Perfect World Announces First Quarter 2013 Total revenues USD100.6 million.
revlot
Member Posts: 0 Arc User
http://www.prnewswire.com/news-releases/perfect-world-announces-first-quarter-2013-unaudited-financial-results-209237311.html
"online game developer and operator based in China"
"Our revenues in the first quarter of 2013 were in line with our expectations."
"As we expected, the overall performance of our existing games in the first quarter was softer, but we are pleased with the recent progress we have made in our portfolio and pipeline development."
BEIJING, May 28, 2013 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its unaudited financial results for the first quarter ended March 31, 2013.
(Logo: http://photos.prnewswire.com/prnh/20090416/CNTH023LOGO)
First Quarter 2013 Highlights[1]
Total revenues were RMB624.5 million (USD100.6 million), as compared to RMB679.9 million in 4Q12 and RMB718.5 million in 1Q12.
Gross profit was RMB477.9 million (USD77.0 million), as compared to RMB522.6 million in 4Q12 and RMB591.4 million in 1Q12.
Operating profit was RMB133.1 million (USD21.4 million), as compared to RMB12.4 million in 4Q12 and RMB234.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP operating profit[2] was RMB149.8 million (USD24.1 million), as compared to RMB67.1 million in 4Q12 and RMB256.6 million in 1Q12.
Net income attributable to the Company's shareholders was RMB131.0 million (USD21.1 million), as compared to RMB86.4 million in 4Q12 and RMB209.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP net income attributable to the Company's shareholders[2] was RMB147.6 million (USD23.8 million), as compared to RMB141.1 million in 4Q12 and RMB231.6 million in 1Q12.
Basic and diluted earnings per American Depositary Share ("ADS")[3] were RMB2.70 (USD0.44) and RMB2.69 (USD0.43), respectively, as compared to RMB1.79 and RMB1.78, respectively, in 4Q12, and RMB4.52 and RMB4.38, respectively, in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP basic and diluted earnings per ADS[2] were RMB3.05 (USD0.49) and RMB3.03 (USD0.49), respectively, as compared to RMB2.92 and RMB2.90, respectively, in 4Q12, and RMB4.99 and RMB4.83, respectively, in 1Q12.
Mr. Robert Xiao, CEO of Perfect World commented, "Our revenues in the first quarter of 2013 were in line with our expectations. During the quarter, we continued to primarily focus on developing new content for our portfolio and pipeline and slow down promotional activities. As we expected, the overall performance of our existing games in the first quarter was softer, but we are pleased with the recent progress we have made in our portfolio and pipeline development."
"We are looking forward to bringing many exciting titles from our pipeline to our players, including the highly-anticipated 'Swordsman Online' and 'Dota 2,' our recently-unveiled 3D MMORPG 'Holy King,' as well as a number of web games and mobile games. We are pleased with some of the progress our R&D team in China made lately. In mid-May, we launched open beta testing for 'Saint Seiya Online,' a 3D comic-based MMORPG adapted from the famous comic series 'Saint Seiya.' We also launched several web and mobile games recently. We are actively investing in this area, and we plan to bring more web and mobile games to players throughout the year. 'Swordsman Online,' a self-developed 3D MMORPG, is now in the final stages of development as we fine-tune details of the game. And 'Dota 2,' a world-famous title with a unique mix of action, RTS and RPG gameplay, is also in the varied line-up of titles that we are bringing to our players in China. In addition to these exciting titles in China, our overseas studios also made great progress in pipeline development. At the end of April, we launched open beta testing for the English, French and German versions of 'Neverwinter' in the U.S. and Europe. 'Neverwinter' is a widely-acclaimed MMORPG developed by Cryptic Studios, our subsidiary in the U.S. Our specialized R&D studios in China and abroad are not only essential to producing more high-quality entertainment for our gamers worldwide, but also critical to further strengthening our global strategy."
"Our global strategy continues to be one of the key competitive advantages of our business. We continued to strengthen our global presence by launching more games through both our own overseas subsidiaries and our overseas partners. Recently, we further expanded overseas operations through our subsidiaries in Korea and Southeast Asia. Moving forward, we will continue to buttress our leading position in the overseas markets through our extensive overseas network, which covers over a hundred countries and regions and generates over one-fourth of our total revenues. Through the continued development of our global operating network, we look forward to providing more high-quality games and services to players worldwide."
"We believe, our ongoing efforts to develop our diverse portfolio and pipeline, solid global R&D capabilities, and extensive global operating network will translate into more exciting and innovative entertainment for game players worldwide and new growth drivers for our business for the remainder of 2013 and beyond."
First Quarter 2013 Financial Results
Total Revenues
Total revenues were RMB624.5 million (USD100.6 million) in 1Q13, as compared to RMB679.9 million in 4Q12 and RMB718.5 million in 1Q12.
Online game operation revenues, which include both domestic and overseas online game operations, were RMB556.2 million (USD89.6 million) in 1Q13, as compared to RMB599.7 million in 4Q12 and RMB665.1 million in 1Q12. In the first quarter, the Company continued to slow down in-game promotional activities and primarily focused on content development of its portfolio and pipeline.
The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 554,000 in 1Q13, as compared to 620,000 in 4Q12 and 804,000 in 1Q12. The decrease from 4Q12 was mainly due to adverse seasonality factors affecting user traffic in 1Q13.
Licensing revenues were RMB30.1 million (USD4.9 million) in 1Q13, as compared to RMB36.5 million in 4Q12 and RMB49.2 million in 1Q12. The decrease from 4Q12 was mainly due to a decrease in usage-based royalty fees in overseas markets in 1Q13.
Other revenues were RMB38.2 million (USD6.1 million) in 1Q13, as compared to RMB43.7 million in 4Q12 and RMB4.2 million in 1Q12. Most of the other revenues were associated with "Torchlight 2," a popular pay-per-install game developed by Runic Games, the Company's majority-owned subsidiary based in the U.S.
Cost of Revenues
The cost of revenues was RMB146.6 million (USD23.6 million) in 1Q13, as compared to RMB157.3 million in 4Q12 and RMB127.1 million in 1Q12. An impairment associated with certain of the Company's smaller games was charged off in 4Q12, whereas there was no similar cost in 1Q13.
Gross Profit and Gross Margin
Gross profit was RMB477.9 million (USD77.0 million) in 1Q13, as compared to RMB522.6 million in 4Q12 and RMB591.4 million in 1Q12. Gross margin was 76.5% in 1Q13, as compared to 76.9% in 4Q12 and 82.3% in 1Q12.
Operating Expenses
Operating expenses were RMB344.9 million (USD55.5 million) in 1Q13, as compared to RMB510.2 million in 4Q12 and RMB356.6 million in 1Q12. The decrease in operating expenses from 4Q12 was mainly due to decreases in sales and marketing expenses, R&D expenses, goodwill impairment, and general and administrative expenses in 1Q13.
R&D expenses were RMB181.0 million (USD29.1 million) in 1Q13, as compared to RMB230.9 million in 4Q12 and RMB179.4 million in 1Q12. The decrease from 4Q12 was primarily due to a decrease in staff cost.
Sales and marketing expenses were RMB96.6 million (USD15.5 million) in 1Q13, as compared to RMB159.7 million in 4Q12 and RMB101.4 million in 1Q12. The decrease from 4Q12 was primarily due to a decrease in advertising and promotional expenses in 1Q13. The Company did not launch any major new game or release any major expansion pack in 1Q13.
General and administrative expenses were RMB67.3 million (USD10.8 million) in 1Q13, as compared to RMB78.8 million in 4Q12 and RMB75.8 million in 1Q12. The decrease from 4Q12 was mainly due to a decrease in staff cost.
Goodwill impairment was Nil in 1Q13, as compared to RMB40.8 million in 4Q12 and Nil in 1Q12. A goodwill impairment associated with the Company's Japanese subsidiary was charged off in 4Q12, whereas there was no such charge in 1Q13.
Operating Profit
Operating profit was RMB133.1 million (USD21.4 million) in 1Q13, as compared to RMB12.4 million in 4Q12 and RMB234.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP operating profit was RMB149.8 million (USD24.1 million) in 1Q13, as compared to RMB67.1 million in 4Q12 and RMB256.6 million in 1Q12.
Total Other Income
Total other income was RMB34.2 million (USD5.5 million) in 1Q13, as compared to RMB75.6 million in 4Q12 and RMB21.0 million in 1Q12. In 1Q13, the Company did not recognize as much government grant subsidy income as in 4Q12.
Income Tax Expense
Income tax expense was RMB33.5 million (USD5.4 million) in 1Q13, as compared to RMB1.1 million in 4Q12 and RMB47.8 million in 1Q12. The increase from 4Q12 was primarily because an R&D super deduction was recognized during the annual tax filing for some of the Company's PRC entities in 4Q12. The increase from 4Q12 is also a result of the increase in the operating profit in 1Q13.
Net Income Attributable to the Company's Shareholders
Net income attributable to the Company's shareholders was RMB131.0 million (USD21.1 million) in 1Q13, as compared to RMB86.4 million in 4Q12 and RMB209.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP net income attributable to the Company's shareholders was RMB147.6 million (USD23.8 million) in 1Q13, as compared to RMB141.1 million in 4Q12 and RMB231.6 million in 1Q12.
Basic and diluted earnings per ADS were RMB2.70 (USD0.44) and RMB2.69 (USD0.43), respectively, in 1Q13, as compared to RMB1.79 and RMB1.78, respectively, in 4Q12, and RMB4.52 and RMB4.38, respectively, in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP basic and diluted earnings per ADS were RMB3.05 (USD0.49) and RMB3.03 (USD0.49), respectively, in 1Q13, as compared to RMB2.92 and RMB2.90, respectively, in 4Q12, and RMB4.99 and RMB4.83, respectively, in 1Q12.
Cash and Cash Equivalents
As of March 31, 2013, the Company had RMB904.8 million (USD145.7 million) of cash and cash equivalents, as compared to RMB799.6 million as of December 31, 2012. The increase was mainly due to the cash inflow from some matured short-term structured deposits.
Recent Development
Open Beta Testing for "Saint Seiya Online"
The Company launched open beta testing for "Saint Seiya Online," the Company's 3D comic-based MMORPG, on May 16, 2013.
Business Outlook
Based on the Company's current operations, total revenues for the second quarter of 2013 are expected to be between RMB656 million and RMB687 million, representing an increase of 5% to 10% on a sequential basis. This takes into consideration the anticipated additional revenue contribution from the recent launches of "Saint Seiya Online" in China and "Neverwinter" in the U.S. and Europe.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company's shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge and the goodwill impairment from operating profit, net income attributable to the Company's shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will continue to be incurred and goodwill impairment may recur in the future. They are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company's results. None of the non-GAAP measures is a measure of net income attributable to the Company's shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation charge and the goodwill impairment in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release.
"online game developer and operator based in China"
"Our revenues in the first quarter of 2013 were in line with our expectations."
"As we expected, the overall performance of our existing games in the first quarter was softer, but we are pleased with the recent progress we have made in our portfolio and pipeline development."
BEIJING, May 28, 2013 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its unaudited financial results for the first quarter ended March 31, 2013.
(Logo: http://photos.prnewswire.com/prnh/20090416/CNTH023LOGO)
First Quarter 2013 Highlights[1]
Total revenues were RMB624.5 million (USD100.6 million), as compared to RMB679.9 million in 4Q12 and RMB718.5 million in 1Q12.
Gross profit was RMB477.9 million (USD77.0 million), as compared to RMB522.6 million in 4Q12 and RMB591.4 million in 1Q12.
Operating profit was RMB133.1 million (USD21.4 million), as compared to RMB12.4 million in 4Q12 and RMB234.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP operating profit[2] was RMB149.8 million (USD24.1 million), as compared to RMB67.1 million in 4Q12 and RMB256.6 million in 1Q12.
Net income attributable to the Company's shareholders was RMB131.0 million (USD21.1 million), as compared to RMB86.4 million in 4Q12 and RMB209.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP net income attributable to the Company's shareholders[2] was RMB147.6 million (USD23.8 million), as compared to RMB141.1 million in 4Q12 and RMB231.6 million in 1Q12.
Basic and diluted earnings per American Depositary Share ("ADS")[3] were RMB2.70 (USD0.44) and RMB2.69 (USD0.43), respectively, as compared to RMB1.79 and RMB1.78, respectively, in 4Q12, and RMB4.52 and RMB4.38, respectively, in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP basic and diluted earnings per ADS[2] were RMB3.05 (USD0.49) and RMB3.03 (USD0.49), respectively, as compared to RMB2.92 and RMB2.90, respectively, in 4Q12, and RMB4.99 and RMB4.83, respectively, in 1Q12.
Mr. Robert Xiao, CEO of Perfect World commented, "Our revenues in the first quarter of 2013 were in line with our expectations. During the quarter, we continued to primarily focus on developing new content for our portfolio and pipeline and slow down promotional activities. As we expected, the overall performance of our existing games in the first quarter was softer, but we are pleased with the recent progress we have made in our portfolio and pipeline development."
"We are looking forward to bringing many exciting titles from our pipeline to our players, including the highly-anticipated 'Swordsman Online' and 'Dota 2,' our recently-unveiled 3D MMORPG 'Holy King,' as well as a number of web games and mobile games. We are pleased with some of the progress our R&D team in China made lately. In mid-May, we launched open beta testing for 'Saint Seiya Online,' a 3D comic-based MMORPG adapted from the famous comic series 'Saint Seiya.' We also launched several web and mobile games recently. We are actively investing in this area, and we plan to bring more web and mobile games to players throughout the year. 'Swordsman Online,' a self-developed 3D MMORPG, is now in the final stages of development as we fine-tune details of the game. And 'Dota 2,' a world-famous title with a unique mix of action, RTS and RPG gameplay, is also in the varied line-up of titles that we are bringing to our players in China. In addition to these exciting titles in China, our overseas studios also made great progress in pipeline development. At the end of April, we launched open beta testing for the English, French and German versions of 'Neverwinter' in the U.S. and Europe. 'Neverwinter' is a widely-acclaimed MMORPG developed by Cryptic Studios, our subsidiary in the U.S. Our specialized R&D studios in China and abroad are not only essential to producing more high-quality entertainment for our gamers worldwide, but also critical to further strengthening our global strategy."
"Our global strategy continues to be one of the key competitive advantages of our business. We continued to strengthen our global presence by launching more games through both our own overseas subsidiaries and our overseas partners. Recently, we further expanded overseas operations through our subsidiaries in Korea and Southeast Asia. Moving forward, we will continue to buttress our leading position in the overseas markets through our extensive overseas network, which covers over a hundred countries and regions and generates over one-fourth of our total revenues. Through the continued development of our global operating network, we look forward to providing more high-quality games and services to players worldwide."
"We believe, our ongoing efforts to develop our diverse portfolio and pipeline, solid global R&D capabilities, and extensive global operating network will translate into more exciting and innovative entertainment for game players worldwide and new growth drivers for our business for the remainder of 2013 and beyond."
First Quarter 2013 Financial Results
Total Revenues
Total revenues were RMB624.5 million (USD100.6 million) in 1Q13, as compared to RMB679.9 million in 4Q12 and RMB718.5 million in 1Q12.
Online game operation revenues, which include both domestic and overseas online game operations, were RMB556.2 million (USD89.6 million) in 1Q13, as compared to RMB599.7 million in 4Q12 and RMB665.1 million in 1Q12. In the first quarter, the Company continued to slow down in-game promotional activities and primarily focused on content development of its portfolio and pipeline.
The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 554,000 in 1Q13, as compared to 620,000 in 4Q12 and 804,000 in 1Q12. The decrease from 4Q12 was mainly due to adverse seasonality factors affecting user traffic in 1Q13.
Licensing revenues were RMB30.1 million (USD4.9 million) in 1Q13, as compared to RMB36.5 million in 4Q12 and RMB49.2 million in 1Q12. The decrease from 4Q12 was mainly due to a decrease in usage-based royalty fees in overseas markets in 1Q13.
Other revenues were RMB38.2 million (USD6.1 million) in 1Q13, as compared to RMB43.7 million in 4Q12 and RMB4.2 million in 1Q12. Most of the other revenues were associated with "Torchlight 2," a popular pay-per-install game developed by Runic Games, the Company's majority-owned subsidiary based in the U.S.
Cost of Revenues
The cost of revenues was RMB146.6 million (USD23.6 million) in 1Q13, as compared to RMB157.3 million in 4Q12 and RMB127.1 million in 1Q12. An impairment associated with certain of the Company's smaller games was charged off in 4Q12, whereas there was no similar cost in 1Q13.
Gross Profit and Gross Margin
Gross profit was RMB477.9 million (USD77.0 million) in 1Q13, as compared to RMB522.6 million in 4Q12 and RMB591.4 million in 1Q12. Gross margin was 76.5% in 1Q13, as compared to 76.9% in 4Q12 and 82.3% in 1Q12.
Operating Expenses
Operating expenses were RMB344.9 million (USD55.5 million) in 1Q13, as compared to RMB510.2 million in 4Q12 and RMB356.6 million in 1Q12. The decrease in operating expenses from 4Q12 was mainly due to decreases in sales and marketing expenses, R&D expenses, goodwill impairment, and general and administrative expenses in 1Q13.
R&D expenses were RMB181.0 million (USD29.1 million) in 1Q13, as compared to RMB230.9 million in 4Q12 and RMB179.4 million in 1Q12. The decrease from 4Q12 was primarily due to a decrease in staff cost.
Sales and marketing expenses were RMB96.6 million (USD15.5 million) in 1Q13, as compared to RMB159.7 million in 4Q12 and RMB101.4 million in 1Q12. The decrease from 4Q12 was primarily due to a decrease in advertising and promotional expenses in 1Q13. The Company did not launch any major new game or release any major expansion pack in 1Q13.
General and administrative expenses were RMB67.3 million (USD10.8 million) in 1Q13, as compared to RMB78.8 million in 4Q12 and RMB75.8 million in 1Q12. The decrease from 4Q12 was mainly due to a decrease in staff cost.
Goodwill impairment was Nil in 1Q13, as compared to RMB40.8 million in 4Q12 and Nil in 1Q12. A goodwill impairment associated with the Company's Japanese subsidiary was charged off in 4Q12, whereas there was no such charge in 1Q13.
Operating Profit
Operating profit was RMB133.1 million (USD21.4 million) in 1Q13, as compared to RMB12.4 million in 4Q12 and RMB234.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP operating profit was RMB149.8 million (USD24.1 million) in 1Q13, as compared to RMB67.1 million in 4Q12 and RMB256.6 million in 1Q12.
Total Other Income
Total other income was RMB34.2 million (USD5.5 million) in 1Q13, as compared to RMB75.6 million in 4Q12 and RMB21.0 million in 1Q12. In 1Q13, the Company did not recognize as much government grant subsidy income as in 4Q12.
Income Tax Expense
Income tax expense was RMB33.5 million (USD5.4 million) in 1Q13, as compared to RMB1.1 million in 4Q12 and RMB47.8 million in 1Q12. The increase from 4Q12 was primarily because an R&D super deduction was recognized during the annual tax filing for some of the Company's PRC entities in 4Q12. The increase from 4Q12 is also a result of the increase in the operating profit in 1Q13.
Net Income Attributable to the Company's Shareholders
Net income attributable to the Company's shareholders was RMB131.0 million (USD21.1 million) in 1Q13, as compared to RMB86.4 million in 4Q12 and RMB209.8 million in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP net income attributable to the Company's shareholders was RMB147.6 million (USD23.8 million) in 1Q13, as compared to RMB141.1 million in 4Q12 and RMB231.6 million in 1Q12.
Basic and diluted earnings per ADS were RMB2.70 (USD0.44) and RMB2.69 (USD0.43), respectively, in 1Q13, as compared to RMB1.79 and RMB1.78, respectively, in 4Q12, and RMB4.52 and RMB4.38, respectively, in 1Q12. Excluding the share-based compensation charge and the goodwill impairment, non-GAAP basic and diluted earnings per ADS were RMB3.05 (USD0.49) and RMB3.03 (USD0.49), respectively, in 1Q13, as compared to RMB2.92 and RMB2.90, respectively, in 4Q12, and RMB4.99 and RMB4.83, respectively, in 1Q12.
Cash and Cash Equivalents
As of March 31, 2013, the Company had RMB904.8 million (USD145.7 million) of cash and cash equivalents, as compared to RMB799.6 million as of December 31, 2012. The increase was mainly due to the cash inflow from some matured short-term structured deposits.
Recent Development
Open Beta Testing for "Saint Seiya Online"
The Company launched open beta testing for "Saint Seiya Online," the Company's 3D comic-based MMORPG, on May 16, 2013.
Business Outlook
Based on the Company's current operations, total revenues for the second quarter of 2013 are expected to be between RMB656 million and RMB687 million, representing an increase of 5% to 10% on a sequential basis. This takes into consideration the anticipated additional revenue contribution from the recent launches of "Saint Seiya Online" in China and "Neverwinter" in the U.S. and Europe.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company's shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge and the goodwill impairment from operating profit, net income attributable to the Company's shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will continue to be incurred and goodwill impairment may recur in the future. They are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company's results. None of the non-GAAP measures is a measure of net income attributable to the Company's shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation charge and the goodwill impairment in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release.
Post edited by revlot on
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Comments
Been around since Dec 2010 on STO and bought LTS in Apr 2013 for STO.
Mr. Gorbachev, tear down this wall.
keep in mind they spent between 40-50million to buy cryptic.
any mention of investing in the game companies they already own?
So that their games might actually work? Cuz that would be just peachy
50million to PWE is small change. if their profit figures are accurate for market quarters.
Been around since Dec 2010 on STO and bought LTS in Apr 2013 for STO.
Despite the decline, 11.8% drop is outperforming the industry they're in.
Mine Trap Supporter
Plus(again someone correct me if I am wrong)......they(PWE) have already bought most of the infrastructure so they are just spending maintenance dollars at this point?
I.E. like when you get a cable box from your cable provider they have already bought and paid for the box a long time ago.....they are just reusing the same piece of equipment over and over.....
There's tons of money to be made off of IP's like Star Trek and Never Winter and I'm sure that now that Cryptic and PWE have figured out that if they show us the product we'll show them the money that the future can be bright.
Revenues steadily declining over the last year (and not that much comparatively)
Total Revenues means every cent received by the company. That does not take into account ANY money spent on salaries, equipment, office supplies, break room coffee, etc.
Profits steadily declining over the last year. Thats a global profit of 77 million spread out over a dozen titles.
Gross profits means Revenues less (minus) Expenses. But before any taxes are paid.
Statement implying that they are relying on future game development and launches to recoup market share and profitability.
I think that given the market constraints of the poor economy, the market saturation and competition within the gaming community, and the finite resources and manpower able to be dedicated to STO, PWE/Cryptic have done a fantastic job at producing, maintaining, and expanding this niche game.
While there will likely always be bugs, and room for improvement given the circumstances above, instead of bemoaning every flaw, and decrying the lack of perfection while holding Crptic to unreasonable industry standards, the player base, small and loyal to the franchise as it is, should revel that such a game exists at all, much less in a constantly supported manner, while simply urging and supporting continued interest and development from Cryptic. It's about perspective.
::WARNING:: This game is not intended for use as a source of self-esteem.
I actually think that 100000000 is a pretty good number for PWE if it is only accounting for its US interests.
Granted I do not know how many games that PWE is currently backing here in the states.
The thing that concerns me a little bit is that PWE main branch overseas is getting its backside handed to it by a lot of its gaming industry competitors over there.
There was an article on Massively towards the end of 2012 that highlighted the main branch of PWE financial situation and stated that there profits were down from prior years to the tune of something like 230000000.
I think that one of the main reasons PWE ventured into our gaming market was to help establish itself in the US before its competitors could do the same and to help generate some revenue to help offset its loses back home.
All in all I'm not worried about PWE/Cryptic or the future of STO.
Good summary
the other big thing to bear in mind as far as the cryptic stable is concerned is that these figures reflect the investment and development cos of NWN and LoR, but wont reflect the recouping of that cost, so these two launches should make Cryptic look healthier..
provided enough people play
That's because it's a newswire article and not a tweet.
You youngsters. /sigh
That is outstanding, >300% profit:expense ratio when most industries are lucky to get 20%
as soon as Cryptic starts being unprofitable or a liability; PWE will either sell Cryptic off or liquidate the company
PWE is a huge MMO company; buying Cryptic was just a tool to get a greater market share of the western players
This post tells us nothing about Cryptic's future itself and its not a good sign that Cryptic wont even give account stats (number of players online/active) like most other MMOs