Alliance Media Hldgs Inc (OTC:ADTR)

Fourth Quarter 2014 Results

• Net sales for the three months ended June 30, 2014 decreased 31% to $12.8 million from $18.6 million for the three months ended June 30, 2013.
• Net income for the three months ended June 30, 2014 decreased to $251,000 compared to $488,000 for the three months ended June 30, 2013.

Jay Gelman, Chairman and Chief Executive Officer, said, "The release of the new PS4™ and Xbox One game platforms during the second quarter of our 2014 fiscal year resulted in a dramatic slowdown in sales of full-price "front-line" product and discounted "value product" for the older PS3® and Xbox360 platforms. Industry-wide sales of value product for last generation consoles have slowly recovered, starting at the beginning of our 3rd quarter 2014. However, sales of front-line product for last generation consoles continue to be weak. Most of our inventory and sales are concentrated in value product."

Gelman continued, "Occasional closeout opportunities allow us to create large volume offerings at low retail prices. The number of these opportunities in our 2013 fiscal year was greater than in the 2014 fiscal year. The reduction in close-out opportunities, combined with the slowdown in consumer purchases in connection with the release of Sony and Microsoft's new platforms, accounted for a substantial portion of the reduction in revenues in our 2014 fiscal year. Net income in the 2014 fiscal year continued to be strong, and was substantially the same as our net income in our 2013 fiscal year."

First Quarter 2013 Results

• Net sales for the quarter ended September 30, 2013 increased 52% to $18.7 million from $12.3 million for the quarter ended September 30, 2012.
• Net income for the 2013 quarter increased to $431,000 from $16,000 in the corresponding period in 2012.

The Company also reported that it signed an agreement with FarSight Studios to publish The Pinball Arcade, a video game developed by FarSight Studios for the new PlayStation®4.  The game has been submitted to Sony Corporation Entertainment America LLC for final approval.

Jay Gelman, Chairman and Chief Executive Officer, said, "The release in November of Microsoft's Xbox One and Sony's PlayStation®4 may negatively impact our results starting in the fourth quarter by reducing revenues from prior generation consoles and games."

Gelman continued, "FarSight Studios is a respected developer in our industry and we are delighted to enter into the publishing arena with them on a great family oriented title that utilizes the best features of the PS4™ console. Subject to Sony's final approval we are aiming to release the title later this month, which would put us in the PS4™ launch window."