Artificial Life Reports Strong Growth and Profits for First Quarter 2008
Tuesday April 29, 7:00 am ET
HONG KONG, April 29, 2008 (PRIME NEWSWIRE) -- Hong Kong-based Artificial Life, Inc. (OTC BB:ALIF.OB - News) (http://www.artificial-life.com), a leading full service provider of award-winning mobile technology and applications, today reported results for its first quarter, which ended March 31, 2008.
REVENUES: Revenues for the quarter ended March 31, 2008 were $4,125,004 as compared to $365,688 for the quarter ended March 31, 2007. The increase of revenues of $3,759,316 or 1,028% was mainly due to increased product license income from pre-installation deals for mobile handsets, one-time downloads and monthly subscription revenues for 3G games derived from mobile operators, resellers and handset distributors, and first major license deals for mobile business applications.
INCOME: Income from operations for the quarter ended March 31, 2008 was $2,530,720 as compared to loss from operations of ($543,833) for the quarter ended March 31, 2007. The income from operations is mainly due to revenues of $4,125,004 from the sale of 3G game and business application licenses offset by operational costs of $1,594,284.
Net income for the quarter ended March 31, 2008 was $2,493,585 as compared to a loss of ($532,044) for the quarter ended March 31, 2007.
The basic and diluted net income / (loss) per share for the first quarter of 2008 was $0.06 and $0.05, respectively, as compared to ($0.02) and ($0.02) for the quarter ended March 31, 2007.
``We continued our global expansion in Q1, 2008 and expect further growth for the remainder of the fiscal year 2008. We will extend our global sales channel network and client reach by forming more reseller and operator partnerships as well as by releasing new products and extending our successful activities in the area of mobile business applications,' said Eberhard Schoneburg, CEO of Artificial Life, Inc.
ARTIFICIAL LIFE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three-month Period Ended
March 31,
--------------------------
2008 2007
Revenues:
Software license agreements $ 4,118,377 $ 365,688
Application services and other 6,627 --
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4,125,004 365,688
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Operating expenses:
General and administrative 446,932 278,807
Engineering and cost of sales 646,060 283,961
Research and development 78,657 53,639
Sales and marketing 422,635 293,114
Total operating expenses 1,594,284 909,521
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Income (Loss) from operations 2,530,720 (543,833)
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Other income (expenses):
Interest (expense) income, net (80,557) 6,276
Foreign currency transaction gains and
other 168,977 5,513
----------- -----------
88,420 11,789
----------- -----------
Income (loss) before income taxes 2,619,140 (532,044)
Income tax expense 125,555 --
----------- -----------
Net income (loss) 2,493,585 (532,044)
Foreign currency translation adjustment 37,547 --
----------- -----------
Comprehensive income (loss) $ 2,531,132 $ (532,044)
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Net income / (loss) per share
Basic $ 0.06 $ (0.02)
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Diluted $ 0.05 $ (0.02)
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ARTIFICIAL LIFE, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2008 AND DECEMBER 31, 2007
March 31, Dec. 31,
2008 2007
----------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,160,469 $ 6,210,435
Restricted cash 165,000 --
Accounts receivable 5,645,238 5,198,028
Receivable from issuance of common stock -- 224,500
Prepaid expenses and other 561,972 355,541
Deferred tax asset 207,575 170,000
----------- -----------
Total current assets 9,740,254 12,158,504
----------- -----------
Fixed assets: 2,799,504 1,810,978
----------- -----------
Prepaid license rights 1,091,093 591,093
Prepaid expenses, deposits and other
assets 2,938,189 271,137
Deferred tax asset -- 163,130
----------- -----------
4,029,282 1,025,360
----------- -----------
TOTAL ASSETS $16,569,040 $14,994,842
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable $ 664,304 $ 1,394,767
Accrued expenses 351,112 471,037
Note payable to officer/stockholder 589,684 209,351
Notes payable, net of discount of
$49,500 (2008); $99,000 (2007) 950,500 901,000
----------- -----------
Total liabilities (all current) 2,555,600 3,555,611
----------- -----------
Stockholders' equity:
Preferred stock, $.01 par value;
5,000,000 shares authorized, no shares
issued and outstanding -- --
Common stock, $.01 par value;
130,000,000 shares authorized,
44,502,300 shares issued and outstanding
as of March 31, 2008 and 43,905,509
shares issued and outstanding as of
December 31, 2007 445,023 439,055
Additional paid-in capital 46,352,405 46,315,296
Notes receivable from stockholders (19,577) (19,577)
Accumulated deficit (32,767,844) (35,261,429)
Other comprehensive gain 3,433 (34,114)
----------- -----------
Total stockholders' equity 14,013,440 11,439,231
----------- -----------
$16,569,040 $14,994,842
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About Artificial Life
Artificial Life, Inc. (OTC BB:ALIF.OB - News) is a public U.S. corporation headquartered in Hong Kong with offices in Berlin (EMEA headquarters) and Tokyo. We are a leading global full service provider of award winning mobile technology, mobile TV, content, games and business applications (see also our Company's homepage: http://www.artificial-life.com; and our m-commerce portal: http://www.botme.com).
Forward-Looking Statements:
This press release contains ``forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our future results of operations, financial condition and business prospects. In some cases, you can identify forward-looking statements by terminology such as ``may,' ``will,' ``should,' ``expect,' ``intend,' ``plan,' ``anticipate,' ``believe,' ``estimate,' ``predict,' ``potential,' ``continue,' or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, our ability to obtain additional funding to operate and grow our business; the unproven potential of our mobile gaming business model; changing consumer preferences and uncertainty of market acceptance of our products; timely adoption and availability of 3G mobile technology; market acceptance for use of mobile handheld devices to play the interactive games; unpredictable mobile game development schedules; our reliance on a relatively small number of brands; our ability to license brands from others; our dependence upon resellers and telecommunication carriers and operators to distribute our products; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on March 13, 2008. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.
Contact:
Artificial Life, Inc.
Ada Fong
+852 3102 2800
ir@artificial-life.com
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Source: Artificial Life, Inc.
