FD in the RED?

Yaffle

Volunteer Moderator
Yaffle
If you check the accounts there's about £8 million cash there. Don't panic.

There is a difference between profit and cash, businesses go bust if they don't have cash.
 

JeffRyan

JeffRyan
I'd say it's pretty normal for a company that's putting most of its input into development on it's (I believe) biggest ever project.
 

Yaffle

Volunteer Moderator
Yaffle
There's a quote from an ex-boss of Philips Electronics which is:

"We can make a loss any number of times, but we can only run out of cash once."

Or, the accountant's mantra "sales are vanity, profit is sanity, but cash is reality. Cash is king".
 

Thespen Tombs

Thespen Tombs
When the report came out, I would guess they must have pumped 5/6 million into ED and to only have a 1.7 mill loss at the same time is not bad at all.

Although revenue was down from other titles, but with most of the company effort going into ED that too is understandable.
 

digdug

D
NeoRacer said:
Should we be worried..how can we help?

'StockMarketWire.com - Frontier Developments plunged into the red in the year to the end of May posting an operating loss of £1.7m against a profit of £1.1m last time. - See more at: http://www.stockmarketwire.com/arti...ed-as-revenues-fall.html#sthash.lOeryyP6.dpuf'

http://www.stockmarketwire.com/arti...Developments-in-the-red-as-revenues-fall.html
Click to expand...

I think there has been atleast 75 thousand people buy the game since may.
75x75000= 5,625,000 in Canadian Dollars

I could be wrong
 

EAGLE 5

EAGLE 5
Fear not, there is a big difference between revenue and assets.

We are talking about a major company with sizeable assets that has incurred a loss for one reporting period big deal... tons of companies do that and then they make it up.

I guarantee once FD releases Elite that there will be plenty of money flowing from that. I never preordered anything before ED because of TVM. I know that my preorder proceeds helped the company along doing their thing so I didn't mind because I'm a huge fan of the series. Many other there still have yet to jump in on the game and when they do well we'll see about that loss.
 

CATPAIN KIRK

CATPAIN KIRK
Just read this today - fits the topic very well I'd say.

That amount is also a tiny fraction of the $53 million (and counting) raised by Star Citizen, but Braben said "we're very, very happy" with the budget, especially since fans are continuing to pay for beta access and preorders. "We already have enough [money] to see it through," he said. "It all means it just de-risks it in a really good way."
Click to expand...
 

EAGLE 5

EAGLE 5
Another point to consider:

Bankrupt companies don't constantly solicit employment opportunities..

FD Does that every chance they get WE'RE HIRING!!! sounds familiar? because it's plastered on every site and newsletter they send out..



Oh how I wish I had picked a different career :(
 
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