Midway Games Reports 2007 Q1 Results

Midway Reports 2007 Q1 Results

Midway Games Inc. (NYSE:MWY) today announced results of operations for the three month period ended March 31, 2007. The Company also confirmed its prior full year guidance and provided revenue and earnings guidance for the second quarter ending June 30, 2007.

FIRST QUARTER RESULTS

Net revenues for the 2007 first quarter were $11.1 million, compared to the 2006 first quarter net revenues of $15.4 million and ahead of prior guidance of approximately $7 million. The 2007 first quarter net loss was $19.8 million, or a loss of $0.22 per basic and diluted share, compared with a 2006 first quarter net loss of $22.6 million, or a loss of $0.25 per basic and diluted share.

On a non-GAAP basis, excluding the impact of stock-option expenses and other non-cash items, the 2007 first quarter loss was $18.2 million or $0.20 per basic and diluted share, compared to the Company’s previous non-GAAP guidance of a loss of approximately $0.23 per basic and diluted share. For the 2006 first quarter, on a non-GAAP basis, the Company reported a loss of $21.5 million, or a loss of $0.24 per basic and diluted share. A reconciliation of non-GAAP results to GAAP results is provided at the end of this press release.

Other recent operating highlights include:
Midway released The Lord of The Rings Online: Shadows of Angmar in North America on April 24th, culminating an extensive beta event and the most successful North American pre-order program in Midway’s history.
In addition, Midway announced that Aqua Teen Hunger Force Zombie Ninja Pro-Am, an interactive title based on the hit comedy series from Cartoon Network’s Adult Swim, is expected to be available for PlayStation 2 this fall.

David F. Zucker, president and chief executive officer, commented, “We exceeded our expectations during the first quarter primarily due to the continuing sales of our holiday 2006 releases and other catalog titles. The second quarter is off to an excellent start with the launch of The Lord of The Rings Online, and our resources are focused on successfully launching several more titles later in the quarter.”