4Kids Entertainment has reported its financial results for the its second quarter ending June 30th 2009.
Net revenues for the three month period were $4.4 million, compared to $16.5 million for the same period in 2008. The company's net loss was $13.8 million, compared with $5.5 million in 2008.
"Our second quarter results were negatively impacted by a number of factors," said chairman and CEO, Alfred Kahn.
"First, the company realised a non-recurring loss of $7.25m on the sale of one of its auction rate securities. Second, Chaotic trading card sales contributed no revenue in the second quarter.
"Although we shipped $2.6m of Chaotic trading card sales in the second quarter, we were unable to recognise the majority of those sales as second quarter revenue as we would have in past quarters. Rather 'pay on scan' sales are recorded as revenue when the cards are purchased by the consumer, not when the cards are shipped to the distributor. We, therefore, expect to record revenue on these sales later in the year."
Kahn continued: "While we are disappointed in the results for this quarter, I am pleased to report that sales of Chaotic trading cards in the US have steadily increased since the debut of the television series on Cartoon Network in June. Over the past eight weeks, Chaotic trading card sales in the US have more than doubled.
"We look forward to Chaotic trading card sales making a substantial contribution to 4Kids revenue in the second half of the year."