Midway Games Inc, Chicago-based entertainment software publisher says earnings for the fourth quarter ending June 30 are expected to be roughly $0.25 per share compared to $0.29 per share in the year-ago quarter and well short of Wall Street expectations of $0.40. Revenues for the quarter are expected to increase approximately 10% year-over-year. Although Midway projects home video game revenue will double, coin-operated video game revenue is expected to fall approximately 25% compared to the prior year fourth quarter due to a decrease in unit shipments. Gross profit is expected to rise approximately 25% but the increase will be more than offset by higher product development expense and selling expense resulting from the increased home video game shipments. On the back of the bad news, Midway shares fell $2.625, or more than 16%, to close at $13.25 on Thursday.
