GRVY Reported Earnings this morning, filed in a 6-K.
Highlights:
1) Break-Even Earnings, they would have had positive Net Income except for a litigation settlement accrual (if I'm doing my math correctly) of around $1.5M.
2) It looks like they're having some problems getting their Ice Age massive multi-player game rolling out the door.
3) Mobile Games were up materially sequentially.
My Thoughts:
1) Currency plays a lot into the results of this company. I expected around break-even results due to the Won gaining on the Yen (a lot of business in Japan).
2) I didn't expect a litigation settlement of that size and I hope it's the last one for a while.
3) Overall, still seems to be a solid value to me here. Low P/E, and a net current asset/cash play here also. If they can continue to milk Ragnarok and get some more Online and Mobile games out the door, generating sales and earnings, the stock price will hopefully follow.
4) Speaking of Ragnarok, I would personally rather they not release Ragnarok 2 too early, alienating their customer base, as long as they still have solid subscribers on Ragnarok 1. Right now, Ragnarok seems to be their ace in the hole with a continued following after many years (which is rare in these massive online games, but seems to be working). Getting new games out there seems to be a better route of development, unless they feel like they have Ragnarok 2 at a solid place to rollout and generate serious subscribers.
cw |
