4Kids Entertainment has reported its results for the fourth quarter and full year ending December 31st 2007.
Net revenues for the fourth quarter totaled $16.5 million from continuing operations as compared to $18.3 million for the same period in 2006. The company's net loss for the quarter ending December 31st 2007 was $(16.8) million. It had a net loss of $(2.3) million in the same period in 2006.
For the year ending December 31st 2007, net revenues totaled $55.6 million from continuing operations, compared with $71.8 million for the same period in 2006. The company's net loss for the year was $(23.3) million, as compared to a net loss of $(1.0) million for the year ending December 31st 2006.
Alfred Kahn, chairman and CEO of 4Kids Entertainment, said: "Our 2007 results were negatively impacted when the company recorded an $11.9 million reserve against its deferred tax assets in accordance with SFAA No 109, Accounting for Income Taxes.
"The reserve increased the company's loss by $.90 per diluted share. In addition, in 2007, we incurred approximately $7.8 million in net losses attributable to start up costs for our Chaotic trading card and website subsidiaries, TC Digital Games LLC and TC Websites, which added about another $.60 per diluted share to the company's loss.
"The company, however, did achieve a number of significant milestones in 2007 which I believe provide 4Kids with a solid foundation for the future," Kahn continued. "We expanded our business beyond licensing by launching the Chaotic trading card game and companion website. We expect Chaotic trading card revenues to contribute to the company's results in 2008 and beyond.
"In October 2007, we also entered into a five-year deal with The CW Television Network which will provide 4Kids with television distribution for its content through at least 2013."
Kahn also said that he was encouraged by the initial response to the Chaotic trading card game in the US.