Rage in serious trouble
Losses up, share price down, cash-flow problems
Rage Software is in serious financial trouble, MCV is reporting, after a turbulent week for the company and other UK games outfits. Disappointing interim results from Rage have led to speculation that the Liverpool publisher's time may be running out. Rage reported a loss before tax of £8.5m on sales of £5.8m over the course of six months ending December 2001. Losses for the full year are now liable to be higher than market expectations and funding has become a major problem. According to MCV, the David Beckham game hasn't sold particularly well and the in-house development is drawing a massive overhead, leading to short-term cash-flow problems aggravated by a poor share price. Some now believe that the firm is too weak to launch its forthcoming titles and its overseas deal with Majesco relies on software to pay back, leaving the company back at square one. Rage has recently witnessed a number of staff changes and boasts several major titles in the offing, including Crash ('Totaled!' in the States), Mobile Forces and Incoming Forces. Work continues on several others. Related Feature - Crash is Totaled!
