Today, Artificial Life, Inc. announced its financial results for the fourth quarter of 2008 as well as the full year. During the year, the company strengthened its position and market share as a leading global mobile software provider. The company sold more than ten million copies of mobile games around the world, a substantial increase over the approximate four million games sold in 2007.
Revenues for the year totaled $22,454,414, a 287% increase over the prior year’s $5,801,212. The large increase was primarily due to revenues generated from the sales of the most popular 3G mobile games such as V-girl(r), V-boy(r), and the poker game Chips Unlimited: Texas Hold’em(tm), in addition to strong license income from the sales of MobileBooster(tm) and Mobil Diab(tm).
Even more impressively, the company reported a 945% increase in net income for the fiscal year ended December 31, 2008. Net income totaled $10,575,285 for the year as compared to $1,011,817 for the year ended December 31, 2007. The substantial increase in sales of mobile games and licensing of non-game related mobile business applications and technology was the primary reason for the huge improvement.
Revenues for the fourth quarter ended December 31, 2008 were $6,219,343 as compared to $3,116,754 for the quarter ended December 31, 2007. This reflects an increase of $3,102,589, or approximately 100%. Net income for the fourth quarter of 2008 was $1,906,335 as compared to net income of $2,199,996 for the same quarter in 2007. The decrease of net income was primarily caused by a one time provision for a doubtful account of $731,500 in Q4 2008 and a one time gain from the extinction of liabilities of $685,130 in Q4 2007.
The basic and diluted net income per share for the year ended December 31, 2008 was $0.23 and $0.22, compared to the basic and diluted net income per share for the year ended December 31, 2007, of $0.03 and $0.03. With the company’s common shares currently trading at $0.80, the stock is valued at a P/E of only 3.6.
Eberhard Schoneburg, CEO of Artificial Life, Inc., stated, “2008 was a record year for us with major achievements despite the current global financial crisis. In hindsight the key to our success in 2008 was that we diversified into the field of non game related mobile software since mid of 2007. This new line of business generated already over 40% of our 2008 revenues and contributed even more to our bottom line in 2008. We have also been quite successful in our core mobile gaming business with record sales numbers. Here we profited mostly from the early focus since 2004 on mobile content for broadband networks, 3G phones and smart phones when this market was still in its infancy.”
He added, “Now we are one of the global market leaders in this space and one of the fastest growing companies in Asia which has recently been recognized by Deloitte. 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.”