Gravity Co (NASDAQ:GRVY)

First Quarter 2012

• Revenues for the first quarter ended March 31, 2012 were KRW 16,357 million (US$ 14,421 thousand), representing a 14.4% increase from KRW 14,298 million for the fourth quarter ended December 31, 2011 ("QoQ") and a 18.4% increase from KRW 13,810 million for the first quarter ended March 31, 2011 ("YoY").
• Income before income tax expenses and others was KRW 1,656 million (US$ 1,460 thousand) for the first quarter of 2012, which represents a 44.8% decrease YoY from KRW 3,002 million.

Second Quarter 2011 Results

• Revenues for the second quarter ended June 30, 2011 was KRW 14,584 million (US$ 13,837 thousand), representing a 5.6% increase from KRW 13,810 million for the first quarter ended March 31, 2011 ("QoQ") and a 28.8% increase from KRW 11,326 million for the second quarter ended June 30, 2010 ("YoY").
• Gravity recorded a net income attributable to parent company of KRW 1,721 million (US$ 1,633 thousand) for the second quarter of 2011 compared to KRW 2,408 million for the first quarter of 2011 and KRW 465 million for the second quarter of 2010.
• EPS of the second quarter 2011 was $.06 vs $.01

BUSINESS UPDATES

Ragnarok Online II delayed to the first quarter of 2012

The launch schedule of Ragnarok Online II, a sequel to Ragnarok Online, has been delayed to the first quarter of 2012.

After the second closed beta testing in July 2011, the Company has decided to postpone the release of Ragnarok Online II to work on final tweaks and polish.

Mr. Hyun Chul Park, CEO of Gravity, said, "We want to assure everyone that our development team is working to launch Ragnarok Online II in the earliest time. We really appreciate our users showing continued patience and bearing with us. It will be worth the wait."