Midway Games Loss Deepens

James P. Miller - Chicago Tribune

Midway Games Inc.'s first-quarter loss deepened from the year-ago deficit, the Chicago based maker of enterntainment software disclosed late Monday.

In the latest quarter, the company known for its "Mortal Kombat" video game, said it had a net loss of $34.0 million, or 37 cents a diluted share, compared with a loss of $19.8 million, or 22 cents a share, in last year's quarter.

Midway's loss worsened though the company's first-quarter revenue swelled to $29.9 million from $11.1 million a year earlier.

Adjusted to exclude certain unusual items and the effect of stock options, Midway said, its loss was 29 cents a share, worse than earlier guidance of a 21-cents-share adjusted quarterly loss.

Publicly traded Midway, which is 87 percent owned by media magnate Sumner Redstone, has been struggling with an aging product line and has experienced technical difficulties in developing new games.

The company last reported an annual profit in 1999, and in the years since recorded $559 million losses, not including the $34 million loss in first-quarter 2008. In the latest quarter, Midway ousted its CEO and shook up its management in other areas. Those changes came not long after Sumner installed his daughter Shari, who is president of his National Amusements investing vehicle, as Midway's chairman in late December.

Midway's latest quarter was hurt, among other things, by a surge in interest costs to $108 million from $3.6 million a year earlier.

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