Net revenues in the first quarter of the year totalled $14.9 million, compared with $19.3 million for the same period in 2006. The net loss for the quarter ended March 31st 2007 was $0.2 million, compared with a net income of $1.5 million for the first quarter of 2006.
The stunning performance of the Teenage Mutant Ninja Turtles brand, as well as increases in licensing revenues from Cabbage Patch Kids, were a high point for 4Kids. However, it also saw decreased revenues year-over-year from mature properties such as Yu Gi Oh and Winx Club. Some newer properties also didn't perform as expected.
"During the first quarter, we also began to see some of the effects of last year's cost cutting initiatives with total costs and expenses for the quarter down by approximately $750,000, even after taking into account $700,000 in costs incurred in the first quarter of 2007 attributable to our new trading card company, TC Digital Games, and our new website venture, TC Websites," explained Alfred Kahn, 4Kids Entertainment's chairman and CEO.
"Looking to the future, we are excited by the upcoming release of the Chaotic trading card game and by the launch of its companion website. Unlike previous trading card properties that we represented as a licensing agent, Chaotic cards will be produced by TC Digital Games and, therefore, we will receive a higher percentage of the revenue.
"We will also be announcing several new animated series that will be part of our line-up for the 2007-2008 broadcast season," Kahn continued.