'Get Fit with Mel B' among highlights in shaky SouthPeak financial report
When Get Fit with Mel B is name-dropped no less than three times in your annual fiscal year report as a positive indicator, it tends to raise a red flag. SouthPeak Interactive today shared the financial results of its fiscal 2010 year (July 2009 – June 2010) and did its best to paint an optimistic picture for the current fiscal year. But even fervor over a Spice Girl comeback "this fall" (a firm release date has yet to be locked down) couldn't cover up the bottom line: SouthPeak recorded a net loss of $5.8 million last fiscal year. At least the company has "improved" upon fiscal 2009's $13.3 million loss ... Anybody?
Other highlights from fiscal 2010 include an increase in total units sold to 2.6 million from 2.4 million in fiscal 2009; and the release of 29 titles compared to 18 in fiscal 2009. Read that again -- it seems two "highlights" can combine to form a low point: Average unit sales per title fell from 133.33K in fiscal 2009 to 89.66K last fiscal year.
"While fiscal 2010 was a challenging year, we made critical improvements to our infrastructure and carefully controlled our costs to better align our operations with our revenue stream," SouthPeak CEO Melanie Mroz said in a conference call today. "Fiscal 2011 will be a continuation of controlled expense and a carefully managed title release schedule. Our focus remains on increasing sales with new titles that address gaming in a way that separates us from our competition."
