| CATEGORY: SMALL CAPS NEWS SECTOR: SOFTWARE & COMPUTER SERVICES |
Eidos warns as new Tomb Raider disappoints |
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Fri 09 Jan 2009
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LONDON (SHARECAST) - Computer games maker Eidos has revised down its revenue forecasts and cautioned it may need to renegotiate bank finances after disappointing sales of its new Lara Croft game, Tomb Raider: Underworld.
Eidos, which changed its name from SCi Entertainment, now estimates full year revenue will now be in the range of £160m-£180m compared to previous guidance of £180m-£200m.
"We have passed our peak net debt position and we retain sufficient headroom within our committed banking facility but given revised profit expectations we may need to enter into discussions with our lending bank regarding our June 2009 covenants," it added.
On a global basis to 31 December sales of Underworld were approximately 1.5m units, below Eidos's forecasts, primarily due to a lower start in North America where retailers have restricted inventory levels with heavy price discounts as well.
"Consequently as we enter the second half of our financial year we are cautious about the potential for ongoing price discounting, " it said.
"Looking further into our 2009 financial year, we are encouraged by the positive reaction to our forthcoming Batman: Arkham Asylum videogame," it added.
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