4Kids Entertainment Inc. (KDE) Monday reported a wider loss for the third quarter on higher expenses. Revenues increased year-over-year driven by sales of Chaotic trading cards.
Third quarter loss for New York based-4Kids widened to $5.28 million or $0.40 per share from $4.15 million or $0.31 per share in the prior-year quarter.
Revenues for the quarter increased to $17.78 million from $12.18 million in the same quarter a year ago.
Service revenue decreased to $10.53 million from $12.18 million in the corresponding quarter last year. Product revenue for the quarter was $7.25 million, compared to no revenues reported in the prior-year quarter.
Quarterly revenues included approximately $7.3 million from the sale of Chaotic trading cards at major retailers and comic and hobby stores across the U.S. and Canada.
Loss from operations narrowed to $6.22 million from $6.81 million in the year-ago quarter.
Total costs and expenses was $24.00 million, up from $19.00 million in the prior-year quarter.
For the nine-month period, loss widened to $17.21 million or $1.31 per share from $6.57 million or $0.50 per share in the year-earlier period.
Revenues jumped to $49.46 million from $39.12 million in the same period a year ago.
Going forward, Alfred Kahn, chairman and chief executive officer, said, "With the excitement surrounding Chaotic, we remain on track to meet our previously announced financial targets of $20-$30 million in Chaotic trading card sales for 2008."
KDE is currently trading at $4.68, down $0.33 or 6.59%, on the NYSE.
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