Midway raises Q1 guidance, acquires Suffering developer

Publisher Midway has adjusted its guidance for the first quarter of 2004, notching up a 50 per cent increase in revenues over its previous expectations thanks to strong sales of The Suffering - whose developer the company has now acquired.

The publisher now expects to record revenues of $18 million in the quarter ended March 31st, up from its original guidance of $12 million for the quarter, and also expects to report a smaller loss than the projected $19 million deficit.

Given the success of The Suffering, which is one of the first Midway titles in a long time to significantly outperform expectations, it's unsurprising that the publisher has moved to cement its relationship with the developer of the title.

The company has acquired Surreal Software, the privately held developer of the game, in a deal which values the studio at around $5.3 million of Midway stock - with 540,317 common shares plus 137,199 restricted shares being handed over in exchange for the company.

Midway is expected to post a quarterly profit in the second quarter, which ends on June 30th. This would mark its first quarterly profit in over four years - as the loss in Q1, albeit diminished, will be its seventeenth consecutive quarterly loss.