ADTR Alliance Media Holdings Inc (CE)

NEW YORK, May 12, 2011 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor of interactive video games and gaming products, today announced its financial results for the three-month and nine-month periods ended March 31, 2011.

Net sales for the three months ended March 31, 2011 decreased 21% to $16 million from $20.2 million in the three months ended March 31, 2010.  Net income for the three months ended March 31, 2011 was $7,000, compared to $235,000 for the comparable period in 2010.

For the nine months ended March 31, 2011, net sales decreased 22% to $46.6 million from $60.1 million in the nine months ended March 31, 2010.  Net income for the nine months ended March 31, 2011 was $277,000, compared to $678,000 for the comparable period in 2010.

In April 2011, the company repurchased approximately 8.7 million shares of its common stock for $337,000. The transaction reduced the number of the company's outstanding shares to 44,157,000.

"We continued to see a challenging market in video games during the quarter ended March 31, 2011," said Jay Gelman, Chairman and Chief Executive Officer. "Despite another quarter of growth in value software sales, persistent weakness in frontline software and console sales continues to be a major contributing factor to our overall decline in sales.

"Our Metaversal subsidiary recently released Bad Apples: Battle Harvest in the iTunes Appstore where it is available for $1.99, along with a free version, Bad Apples:  Battle Harvest Lite.  The new application is currently featured on the 'New and Noteworthy' section of the Appstore. We previously noted that Metaversal's Shave Me! game was the second or third most frequently downloaded free application in the iTunes Appstore for a brief period in April."

Timing of Conference Call with Q&A

Alliance Distributors will conduct an earnings conference call, including a question and answer period, at 3:00 PM ET on May 26, 2011.

The call-in number for the conference call is:

888-263-2884  (Pass code:  6277057)

About Alliance Distributors Holding Inc.

Alliance Distributors Holding Inc. (www.alliancedistributors.com), which does business as Alliance Distributors, is a full-service wholesale videogame distributor, specializing in gaming products and accessories for all key manufacturers and 3rd party publishers. Alliance Distributors offers support on: PS3, PSP, PS2, X-Box 360, Wii, DS and GBA SP, peripherals and software titles. Alliance develops downloadable and social content video games through Metaversal Studios (www.metaversalstudios.com), which it wholly-owns.

Safe Harbor

Certain statements contained in this press release contain forward-looking statements including without limitation, statements concerning our operations, economic performance, and financial condition.  The words "estimate," "believe," "expect," "should" and "anticipate" and other similar expressions generally identify forward-looking statements, which speak only as of their dates.

Investors are cautioned that all forward-looking statements, which are based largely on our current expectations, involve risks and uncertainty. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including without limitation, risks associated with technological change, competitive factors and general economic conditions, including the related impact on discretionary consumer spending, changes in marketing and distribution strategies by manufacturers, continued shortages of new platform systems, timely development and release of video game products we produce, potential cost overruns in our development of video games, ability to protect our intellectual property rights, potential claims that we have infringed the intellectual property rights of others, market acceptance of games we develop, ability to realize anticipated benefits of acquisitions, potential undiscovered liabilities of companies that we acquire, changes in our business or growth strategy, the emergence of new or growing competitors, various other competitive and technological factors. There can be no assurance that the results referred to in the forward-looking statements contained in this release will occur. The Company has no duty and undertakes no obligation to update any forward-looking information, whether as a result of new information, future developments or otherwise.

SOURCE Alliance Distributors Holding Inc.