Another game down the drain

[tesco samoa]

IG3 done like Stars supernova

CDV Software Entertainment AG, publisher of computer games and application software, announced today its outlook on the figures for the second quarter of the current year and announced rigorous restructuring measures.

Net sales from April to June at approx. EUR 4 million are expected to be approximately at the level of the previous year.

The second quarter of the previous year closed with a moderate loss of approx. EUR -1 million (total year 2002: EUR -185,000). In the current quarter, a considerably higher loss of approx. EUR -4 million before taxes is expected.

Targeted sales growth for the second quarter was not realized due to several shifts in release dates and below-schedule sales. Personnel levels, which were built up in expectation of much higher growth, will be adjusted to the new situation at short notice. The restructuring measures impact all areas of the company and will be realized by allowing limited work contracts to expire and also by operation-related notices of termination.

With sales lagging behind expectations, a value adjustment of EUR 930,000 was taken on the Heaven & Hell game in the Last quarter. As the prospects for the success of the Galaxy Andromeda project are also not considered to be very high, the project will be ended and a value adjustment made.

Despite the very promising product pipeline for the 2nd half of this year, the Management Board no longer expects a positive result for the whole of the financial year.

The Management Board