Net revenue for the quarter ended June 30, 2005, was $24.2 million, excluding approximately $0.3 million of revenue from the discontinued operations of Humongous, versus $108.1 million, excluding approximately $2.2 million of revenue from the discontinued operations of Humongous, in the comparable year-earlier period. The change in quarterly revenue is primarily attributable to the June 2004 release of DRIV3R (PS2 and Xbox), which ranked as the #2 PS2 title and #5 Xbox title in the U.S., and the Company's decision to release fewer SKUs in fiscal 2006 compared to fiscal 2005 in order to focus on releasing higher quality titles. Publishing net revenue excluding discontinued operations was $12.8 million versus $97.5 million in the prior year, while distribution revenue was $11.4 million versus $10.6 million in the comparable year-earlier period.

Net loss for the fiscal 2006 first quarter was $32.8 million, or $0.27 per share, compared to net income of $12.1 million, or $0.10 per share, in the year earlier period. Loss from continuing operations for the first quarter of fiscal 2006 was $30.5 million, or $0.25 per share, compared to income from continuing operations of $14.1 million, or $0.12 per share, in fiscal 2005. The Company previously announced on February 9, 2005, that it would begin to take steps to streamline its U.S. operations, including the closing of its studios in Santa Monica, California and Beverly, Massachusetts. In doing so, the Company recorded restructuring charges of $2.2 million in the first quarter of 2006. Excluding restructuring charges and losses from discontinued operations, the loss for the first quarter of fiscal 2006 would have been $28.3 million, or $0.23 per share.​