Eidos warns as new Tomb Raider disappoints

LONDON (SHARECAST) - Computer games maker Eidoshas revised down its revenue forecasts and cautioned it may need torenegotiate bank finances after disappointing sales of its new LaraCroft game, Tomb Raider: Underworld.

Eidos, which changed itsname from SCi Entertainment, now estimates full year revenue will nowbe in the range of £160m-£180m compared to previous guidance of£180m-£200m.

"We have passed our peak net debt position and weretain sufficient headroom within our committed banking facility butgiven revised profit expectations we may need to enter into discussionswith our lending bank regarding our June 2009 covenants," it added.

Ona global basis to 31 December sales of Underworld were approximately1.5m units, below Eidos's forecasts, primarily due to a lower start inNorth America where retailers have restricted inventory levels withheavy price discounts as well.

"Consequently as we enter thesecond half of our financial year we are cautious about the potentialfor ongoing price discounting, " it said.

"Looking further intoour 2009 financial year, we are encouraged by the positive reaction toour forthcoming Batman: Arkham Asylum videogame," it added.

Source: ShareCast