SouthPeak breaks even in Q3

SouthPeak has reported it made a small profit of $192,000 for the third quarter ended March 31, 2010.

This is an improvement on the $692,000 recorded during the same period last year, and was attributed to successes in the Nintendo markets, including DS title My Baby which sold over one million copies in the US.

However, lower prices for Nintendo games and a lack of high sales on Xbox 360 and PS3 were given as key factors in the significant decrease in gross profits.

SouthPeak reported gross profits were down to $413,000, down from $5.3 million last year. Net revenues were also down from $13.5 million to $7.5million, and the publisher confirmed it had resolved its legal issues with CDV, which cost $3.2 million.

In conjunction with our previously announced strategy, we limited the number of titles released for the third quarter to better align our activites with the current retail environment and broader gaming industry,” said SouthPeak CEO Melanie Mroz.

While this impacted our sales, we believe this conservative strategy will enable us to more effectively compete among the current market conditions while continuing to maintain tight control of our expenses.

We continued to reduce our operating expenses and have maintained a tight rein on our costs, and are delighted to have achieved break-even for the period.”