LOS ANGELES and HONG KONG, July 28, 2008 (PRIME NEWSWIRE) -- Artificial Life, Inc. (OTCBB:ALIF) (www.artificial-life.com), a leading, full-service provider of mobile 3G+ technology, mobile participation TV, mobile gaming and business applications, today reported results for its second quarter, which ended June 30, 2008.
REVENUES: Revenues for the quarter ended June 30, 2008 were $5,481,470 as compared to $707,066 for the quarter ended June 30, 2007. The increase of revenues of $4,774,404 or 675% 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 hand set distributors and first major license sales for the new technology platform Mobile Booster.
Revenues for the first six months of 2008 were $9,606,474 as compared to $1,072,754 for the same period of 2007, an increase of 795%.
INCOME: Income from operations for the quarter ended June 30, 2008 was $2,890,187 as compared to loss from operations of ($694,298) for the quarter ended June 30, 2007. The income from operations is mainly due to increased revenues of $5,481,470 from the sale of 3G games and technology licenses offset by operating costs of $2,591,283.
Net income for the quarter ended June 30, 2008 was $2,690,314 as compared to loss of ($684,613) for the quarter ended June 30, 2007.
The basic and diluted net income (loss) per share for the second quarter of 2008 was $0.06 and $0.05, respectively, as compared to a loss of ($0.02) for the quarter ended June 30, 2007.
"In the second quarter of 2008, we again achieved profitability and record revenue levels. The strategy of becoming a full service mobile application provider has turned out well and generated very positive results. Among other significant events in the second quarter of 2008, we successfully launched an interactive mobile TV show format in Japan based on our MoPA-TV 3.0 platform and sold the first technology license for our new product Mobile Booster. We expect further strong growth for the remainder of the year," said Eberhard Schoeneburg, CEO of Artificial Life, Inc.
ARTIFICIAL LIFE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three-month Period Ended Six-month Period Ended
June 30, June 30,
---------------------- -----------------------
2008 2007 2008 2007
---------- ---------- ---------- -----------
Revenues:
Software license
agreements $5,475,924 $ 690,066 $9,594,301 $ 1,055,754
Application services
and other 5,546 17,000 12,173 17,000
---------- ---------- ---------- -----------
5,481,470 707,066 9,606,474 1,072,754
---------- ---------- ---------- -----------
Operating expenses:
General and
administrative 581,860 417,214 1,028,792 696,021
Engineering and cost
of sales 1,406,760 470,033 2,052,820 753,994
Research and
development 89,042 73,934 167,699 127,573
Sales and marketing 513,621 440,183 936,256 733,297
---------- ---------- ---------- -----------
Total operating
expenses 2,591,283 1,401,364 4,185,567 2,310,885
---------- ---------- ---------- -----------
Income (loss) from
operations 2,890,187 (694,298) 5,420,907 (1,238,131)
---------- ---------- ---------- -----------
Other income (expenses):
Interest (expense)
income, net (14,590) 1,180 (95,147) 7,456
Foreign currency
transaction gains
and other 190,472 8,505 359,449 14,018
---------- ---------- ---------- -----------
175,882 9,685 264,302 21,474
---------- ---------- ---------- -----------
Income (loss) before
income taxes 3,066,069 (684,613) 5,685,209 (1,216,657)
Income tax expense 375,755 -- 501,310 --
---------- ---------- ---------- -----------
Net income (loss) 2,690,314 (684,613) 5,183,899 (1,216,657)
Foreign currency
translation
adjustment 15,753 6,885 53,300 6,885
---------- ---------- ---------- -----------
Comprehensive
income (loss) 2,706,067 $ (677,728) $5,237,199 $(1,209,772)
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Net income (loss)
per share
Basic $ 0.06 $ (0.02) $ 0.11 $ (0.04)
========== ========== ========== ===========
Diluted $ 0.05 $ (0.02) $ 0.11 $ (0.04)
========== ========== ========== ===========
About Artificial Life, Inc.
Artificial Life, Inc. (OTCBB:ALIF) is a public US corporation headquartered in Hong Kong, with additional offices in Berlin (EMEA headquarters) and Tokyo. As a leading, full-service provider of mobile 3G+ technology, mobile participation TV, mobile gaming, content and business applications, Artificial Life provides 2D and 3D multi- and single-player rich-media applications for 3G, 3.5G and 4G network-enabled mobile phones. Recognized internationally for outstanding content quality and technology, Artificial Life transcends traditional modes of mobile communications and interactive gaming. For more information, please visit www.artificial-life.com or the company's m-commerce portal at 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.