EIDOS PLC WARNS OF MODEST SHORTFALLS
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[ January 21st 2004 ]

British publisher Eidos Plc has warned first-half operating profits are expected to fall short of market forecasts as a result of poor performance on some titles, but claims the figures will be well ahead of the year-earlier period and boasts increased gross margins and positive cash inflow coupled with a strong cash balance. The profit warning shaved 8% from Eidos' share price on the London Stock Market.

"Based on trading performance to date and the strength of the forthcoming release schedule in the second half, the board remains confident in meeting current market expectations for the full year to June 30, 2004," Eidos said in a trading statement issued today. Eidos blames disappointing sales of two popular titles - Commandos 3 and Legacy of Kain: Defiance, which both fell short of projections - coupled with fractured hardware sales in the U.S. for the modest shortfall in revenues.

According to Reuters, analysts' forecasts for annual pre-tax profits range between 19.1 million and 21.4 million pounds, with the consensus figure at 19.86 million. Eidos reported a pre-tax profit of 17.4 million pounds for the year to June 30, 2003.