Conspiracy Entertainment Holdings Inc. (“Conspiracy”) (BULLETIN BOARD: CPYE) , a developer, publisher and marketer of interactive entertainment software in North America and Western Europe, reported today a turnaround to profitability for the second quarter ended June 30, 2007.
Revenues for the three months ended June 30, 2007 increased by 128% to $819,330 from revenues of $360,032 reported for the three months ended June 30, 2006. Gross profit for the three months ended June 30, 2007 increased 333% to $442,500, compared to $102,298, for the three months ended June 30, 2006. The increase in revenues and gross profit was primarily attributed to flat fee sales of $780,000 upon receiving manufacturing approval on the Company’s four video games: Counter Force (Wii), Ninjabread Man (Wii), Power Play Pool (DS) and Cocoto Kart Racing (DS).
Net income for the three months ended June 30, 2007 was $7,942 compared to a net loss of $360,938 for the three months ended June 30, 2006. The turnaround to profitability in the second quarter of 2007 was due to a decrease in other expense of $190,213 and a net operating profit of $87,479 for the three months ended June 30, 2007 as compared to a net operating loss of $91,188 for the three months ended June 30, 2006.
Sirus Ahmadi, president of Conspiracy Entertainment, said, “We are very excited to report strong revenue growth and profits during the second quarter of 2007. Our focus on securing video game distribution contracts in the U.S. and Europe is beginning to pay-off. We are preparing to launch several exciting new gaming titles in the second half of 2007, which should continue to propel top- and bottom-line growth.”
Keith Tanaka, CFO of Conspiracy, commented, “In addition to our sales improvements, we have strengthened our cash position significantly during the second quarter. As of June 30, 2007, we had a cash balance of $268,187 compared to $24,976 at December 31, 2006. Total current assets at June 30, 2007 increased to $520,957 compared to $334,390 at December 31, 2006. We plan to use the cash balance and cash generated from operations for working capital reserves and along with additional debt financing, for new product development, securing new licenses, expanding our product portfolio and additional advertising and marketing to continue on a path of accelerated growth.”
Based in Santa Monica, CA, Conspiracy Entertainment Corporation is a developer, publisher and marketer of entertainment software in North America and Western Europe. The company develops and licenses properties from several sources, including global entertainment and media companies, and publishes software for DVD media, wireless devices, personal computers and videogame consoles including those manufactured by Nintendo, Sony Computer Entertainment, and Microsoft Corporation.