Artificial Life (PINK:ALIF)

HONG KONG, Jan. 18, 2012 (GLOBE NEWSWIRE) -- Artificial Life, Inc. (OTCPK:ALIF), an innovative investment Company, announced today that it has won a contract from the Asia Pacific regional office of one of the biggest banks in the world to implement the first phase of a custom IT development project.

The project goal is to develop a smart sales support system for the bank as well as its clients.

"This is an interesting opportunity for us and our Alife Studios. We have been very active and successful in the banking and finance world in the past with our intelligent Portfolio Manager™ product. It seems that the finance industry is moving in this direction now again, albeit with a stronger focus on mobile devices and mobile platforms. We hope for a long term relationship with our new client," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

Third Quarter 2011 Results

• Revenues for the quarter ended September 30, 2011 were $146,155 as compared to $10,560,747 for the quarter ended September 30, 2010.
• Loss from operations for the quarter ended September 30, 2011 was $(3,789,975), as compared to income from operations of $4,280,746 for the quarter ended September 30, 2010.
• The basic and diluted net (loss) income per share for the third quarter of 2011 was $(0.04), as compared to $0.08 for the quarter ended September 30, 2010.

Current financial results of Artificial Life, Inc. are considered not to be directly comparable with past and future expected results of the Company due to its recent shift in business focus and business model. The Company has ceased to actively sell its former products under the historic licensing business model and started implementing instead its new business model by evaluating and actively pursuing various investments and joint venture opportunities. Therefore, in the short term the Company does not expect substantial revenues as its old income stream is fading out while its new income will mostly come from future investments. The Company will engage in investment activities over the coming months and will only be able to generate income when selling equity stakes or assets. The first substantial asset sales and trades or sales of equity in its new investment companies are currently expected in early 2012.

"We are satisfied with the careful step-by-step implementation of our new business model and the evaluation of several promising investment opportunities. Everything is starting to take shape. Our first investments are taking off and are becoming active operational entities. Especially our ALife Studios are doing very well already, just weeks after their launch. Hence we are confident in our new strategy and our new business approach and expect to show strong growth and more promising and substantial results to our shareholders already in the near future," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

The agreement entails Artificial Life (ALIF) to sell their games through the MXit social networking and mobile chat platform in the Republic of South Africa and Africa. MXit users are able to purchase games with MXit's virtual currency, Moola.

Due to the delayed filing, the Company today issued guidance for its fiscal year 2010 anticipated earnings based on its current unaudited results as follows:

For the fiscal year 2010, management of the Company anticipates

• revenues to be in the range of $40,000,000 to $42,000,000 as compared to $27,454,474 for the year ended December 31, 2009;
• income from operations is expected to be in the range of $12,000,000 to $14,000,000 as compared to income from operations of $6,125,050 for the year ended December 31, 2009;
• net income is expected to be in the range of $10,000,000 to $12,000,000 as compared to $7,568,719 for the year ended December 31, 2009;
• basic and diluted net income per share is expected to be in the range of $0.19 to $0.21, as compared to $0.15 for the basic and diluted net income per share for the year ended December 31, 2009.

The above described unaudited financial guidance is based on assessments and information currently available to management and based on assumptions and assessments which they deem reasonable. Any of such preliminary unaudited results are subject to potential substantial change or adjustment pending the completion of the Company's audit for the year ended December 31, 2010. As explained above, the Company is presently in the process of identifying an independent auditor to complete the audit of its 2010 results and will file audited results as part of its Form 10-K at such time as the audit has been completed.

Current and potential investors are cautioned that any preliminary unaudited results may still change and that they should not place undue reliance upon them. As set forth in the Company's Form 8-K filing, filed April 6, 2011 regarding the termination of the engagement of KPMG as disclosed above, there were still some unresolved accounting issues at the time that KPMG's engagement was terminated.

HONG KONG and LOS ANGELES, Jan. 13, 2011 /PRNewswire-Asia/ -- Artificial Life, Inc. today revealed its current iPhone/iPod and iPad title sales, download numbers and key ranking statistics.

As of December 31st, 2010, the Company has produced and released 36 applications for the iPhone, iPod touch and iPad. The top title was downloaded for over 6.2 million times, the second most for over 3.4 million times, and the third most for close to 3.1 million times. The average number of downloads per game was about 0.66 million. Paid iPhone games were sold at between USD 0.99 to USD 4.99 with an average price per game of USD 2.27. All the new games released have achieved Top 100 or higher download rankings in their categories. Artificial Life's games have reached #1 on Apple App Store Top Charts in over 74 countries or 83% of all the offered countries.

Third quarter ended September 30, 2010 

• Revenues for the quarter ended September 30, 2010 were US$10,560,747 as compared to US$8,723,481 for the quarter ended September 30, 2009.

• Income from operations for the quarter ended September 30, 2010 was US$4,280,746, an increase of 14%, as compared to income from operations of US$3,750,768for the quarter ended September 30, 2009.

• Net income for the quarter ended September 30, 2010 was US$5,055,651, an increase of 29%, as compared to net income of US$3,906,424 for the quarter ended September 30, 2009. The basic and diluted net income per share for the third quarter of 2010 was US$0.08, as compared to US$0.08for the quarter ended September 30, 2009.

"We are very satisfied with our growth and financial performance this year with another record quarter in terms of revenues and profits in Q3, 2010. We expect further strong growth for the remainder of the year and for 2011," said Frank Namyslik, CFO of Artificial Life, Inc.

"Our business is doing very well and we continue to expand, especially in the m-commerce arena with our flagship product Opus-M(TM) as the foundation of our growth. The strong demand for iPhone/iPad products coincides with the growing needs of all smartphone users for top quality applications. We see increased demand in many app outlets such as the Android Market. Therefore, in 2011, we will focus on further enhancing Opus-M(TM) and on the development of: new iPhone/iPad apps, more Android apps and ports, new augmented reality apps, and new green products for our subsidiary, Green Cortex, Inc. We will place particular focus on innovative social networking games and business apps across multiple platforms. We are preparing several substantial new partnerships and joint ventures. In short, it seems that 2011 will be a very exciting and a very busy year for us," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

'Until end of July 2009, we sold over 8 million mobile 3G and Java games globally and generated over 3 million downloads for the iPhone/iPod Touch. Many of our games have reached TOP 10 rankings globally and we have had TOP 10 positions in about 90% of all countries in which the iPhone is officially sold. Hence, the second quarter and the first half of 2009 were strong despite the global financial crisis. We were able to keep our expansion and profitability. For the remainder of the year we expect to continue to grow and release several strong new branded game titles and soon also our first iPhone business applications' said Eberhard Schoneburg, CEO of Artificial Life, Inc.

Source: PR Newswire (August 13, 2009)

'We are satisfied with our performance, revenues and profits. The first quarter 2009 was our seventh consecutive profitable quarter. So far, we have not experienced a reduction of demand for our products despite the global financial crisis. Sales in Q1 were strong and actually the best in our history."

Source: PR Newswire (May 13, 2009)

Management comments regarding 2008 performance:

"With our well diversified product lines and revenue streams, a growing number of new partners, and an extensive pipeline of exciting new games and new business applications, we are quite optimistic about the future of Artificial Life and our prospects for 2009," said Eberhard Schoneburg, CEO of Artificial Life, Inc."

Source: GlobeNewswire (February 10, 2009)

The GeoTeam was able to find the following verbiage in the Company's 2008 10K:

Even though we have seen a major improvement in sales and revenues in 2007 and 2008, we still may experience significant fluctuations in our future operating results due to a variety of factors. Factors that may affect our operating results include the development of the global mobile broadband markets, the general market acceptance of our products, the growth of the 3G handset markets, the future growth of sales of iPhone/iPod Touch products and Android products, our ability to sell or license our intellectual property at reasonable price levels, success in creating and entering into strategic alliances, our mix of product and service sales, our response to competitive pressure and our ability to attract and retain qualified personnel. In addition to the foregoing industry related factors, the downturn in the global economy over the past several months could have an undesirable effect on our operations and revenue in 2009.