TAILIEUCHUNG - Ubisoft ® reports full-year 2009-10 results

However, the domino model is fl awed. For a start, the domino model paints a picture of passive fi nancial institutions who stand by and do nothing as the sequence of defaults unfold. In practice, however, they will take actions in reaction to unfolding events, and in anticipation of impending defaults. Second, the domino model does not take suffi cient account of how prices and measured risks change. In the simplest scenario of the domino model, asset prices are fi xed at their book values, and balance sheets take a hit only with default. Such a. | UBISOFT Ubisoft reports full-year 2009-10 results Full-year sales 871 million Current operating loss1 60 million Net loss excluding non-recurring items and before stock-based compensation 32 million Net loss 44 million Net cash position 41 million Paris May 18 2010 - Today Ubisoft released its sales and earnings figures for the fiscal year ended March 31 2010. Key financial data In millions 1 2009-10 1 1 2008-09 1 Sales 871 0 1 057 9 Gross Profit 512 8 58 9 639 5 60 4 R D expenses - 309 4 35 5 - 246 3 23 3 Selling expenses - 196 1 22 5 - 204 2 19 3 General and administrative expenses - 66 9 7 7 - 60 2 5 7 SG A expenses - 263 0 30 2 - 264 4 25 0 Current operating income loss 1 - 59 6 -6 8 128 7 12 2 Net income loss - 43 7 -5 0 68 8 6 5 Diluted earnings loss per share in - 0 45 0 71 Diluted earnings loss per share before nonrecurring items and stock-based compensation in - 0 33 0 87 Cash flows from R D investments 353 5 330 5 Net cash debt 41 3 154 2 Including royalties but excluding future commitments and stock-based compensation. Yves Guillemot Chief Executive Officer stated The global economic crisis had a pronounced impact on the video game industry in 2009 which contracted by nearly 10 year-on-year. Ubisoft s sales were hit particularly hard falling 18 over the full year despite a stabilization in the second half of the year when figures came in on a par with the corresponding period of 2008-09. This overall contraction in sales combined with additional write-downs recorded for games already launched as well as for upcoming releases led to a 60 M operating loss. 1 Before stock-based compensation. 1 Sales Sales for the fourth quarter of 2009-10 came to 210 million up on the 206 million recorded for the same period of 2008-09 up at constant exchange rates . Full-year sales for fiscal 2009-10 totaled 871 million versus 1 058 million for fiscal 2008-09 representing a decrease of down also at constant exchange rates . Fourth-quarter sales were .

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