Oasys Mobile Announces 2006 Financial Results
Oasys Mobile announced today that total 2006 revenue increased to $8.69 million, an increase of 11.5% over 2005. However, Oasys reports that net losses grew to $9.33 million compared to approximately $4.41 million for the same period in 2005.
Oasys noted that the operating loss for 2006 includes a charge of approximately $960,000 related to the expensing of employee stock options, which were not expensed in 2005. The company also singled out increased development and marketing costs for its off-deck portal oasysmobile.com and severance costs for the former chief executive officer of the Company as reasons for the increased spending.
"We are now focused on three distinct lines of business that we believe have long-term sustainable growth. Our games and mobile publishing business is one of the strongest in the industry. While we have successfully streamlined our operations and reduced our headcount by approximately 33%, we grew fourth quarter 2006 revenues by 35 percent over fourth quarter 2005 revenues. Additionally, our aggregation business, which we launched in the third quarter of 2006, grew 49% over the previous quarter," CEO Doug Dyer said in a statement.
He continued, "In 2006, Oasys Mobile increased headcount and expended resources pursuing an off-deck direct-to-consumer portal strategy. We have now refocused our portal operations and have positioned the portal technology as a white-label business. It is important to note that our fourth quarter 2006 revenues grew approximately 25% percent over the third quarter of 2006. We will continue to introduce new titles in 2007 and focus on global expansion, and we anticipate reaching profitability in 2007."