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Midway Games Reeling

The video game maker posts loss for quarter due to poor sales and delays in the release of titles.

Video game publisher



missed analyst expectations for the third quarter on poor sales of some games, delays in the release of other titles and a lower financial outlook for the year.

The company

warned on Oct. 2 that it would miss analyst estimates because of delays in the release of two games and lower sales expectations for another,

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Net losses for the quarter widened to $33.5 million, or 37 cents a share, compared with a loss of $22.2 million, or 24 cents a share, in the year-ago quarter.

Excluding stock option-related expenses and other charges, Midway reported a third-quarter loss of $28 million, or 31 cents a share. A year ago, the company reported a loss of $20.3 million, or 22 cents a share. Analysts polled by Thomson Financial were expecting a loss of 33 cents a share.

Net revenue for the 2007 third quarter was $36.7 million compared with $27.4 million a year ago. Analysts were expecting revenue of $39.17 million in the quarter.

Shares of Midway were off 7 cents, or 2.4%, to $2.83 in recent after-hours trading.

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For the fourth quarter, Midway expects revenue of $80 million with a net loss of 21 cents a share.

Excluding charges, the company expects to report a fourth-quarter loss of 13 cents a share. Analysts are expecting a loss of 14 cents a share on revenue of $88 million.

Midway also lowered its financial outlook for the full year 2007 because of a delay in the release of some of its games for the Nintendo Wii and DS titles and lower expectations for sales of


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PlayStation 3 consoles.

Earlier the company had said that it plans to release its game,


, for Sony's PlayStation 3 console in the fourth quarter rather than the third quarter, and has pushed back the release of a key franchise title,

Unreal Tournament 3

for the PS3 to the first quarter of fiscal 2008.

For the year ending Dec. 31, Midway expects a net loss of 95 cents a share on $160 million in revenue. Excluding charges, Midway expects a loss of 76 cents a share. Analysts are expecting a loss of 85 cents a share on $170 million in revenue.