It’s a good day to be a gamer.
Stocks were extremely bullish for independent game publisher Playlogic Entertainment Inc. (OTCBB: PLGC), opening at 90 cents a share Thursday morning, a 20 percent gain from yesterday’s close at 75 cents a share – yesterday’s movement of 67 percent was enough to post the company on the “Price Percentage Gainers” list of the Wall Street Journal.
As an independent publisher of entertainment software for PCs, consoles, handhelds, mobile devices and other digital media, Playlogic distributes a number of video games such as Ancient Wars: Sparta, Infernal, Age of Pirates: Caribbean Tales, World Racing 2, and Knights of the Temple 2.
The rise in stock comes almost directly after posting two releases today. In one, Playlogic confidently states it expects to raise $10 million in private placement from accredited investors and intends to formalize the placement in a few weeks. According to the release, these new funds will be used to improve the working capital and equity position of the company, give Playlogic the chance to execute its business plan, and adhere to its game release schedules.
The second release is just as important; in it, Playlogic states that its net revenues for the first quarter of 2007 climbed to $3.5 million, an increase of 30 percent over the year before. Ever more exciting was its gross profit, which saw an amazing increase of 140 percent to $2.4 million. Net profit also rose from $1.1 million to $1.2 million.
“The profit results from our clear and independent strategy, and continued focus on the development and release of quality games through our network of trusted distributors. We expect this trend which started to become visible in the second half of last year to continue,” said Playlogic’s President Willem M. Smit. “Playlogic is reversing its initial losses and will continue to invest in its further growth by acquiring and publishing high quality content on all platforms to diversify our product portfolio.”
