Business Context and Reporting Period
Company: GRAVITY Co., Ltd.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: April 3, 2007
Reporting Period: The filing incorporates audited non-consolidated financial statements for the years ended December 31, 2006, and 2005.
Business Overview: Gravity is a Korean developer and publisher of online games. Its principal product, Ragnarok Online, is commercially offered in 47 countries, including Japan, Taiwan, and Thailand.
Key Financial Metrics
The filing text serves as a cover document incorporating audited financial statements as Exhibit 99.1. The text itself does not provide specific numerical values for the following metrics:
- Revenue: Not stated in the text.
- Profit: Not stated in the text.
- Cash Flow: Not stated in the text.
- Margins: Not stated in the text.
- Debt and Liquidity: Not stated in the text.
Note: Specific financial figures are contained in the attached Exhibit 99.1 (Non-consolidated financial statements) and are not reproduced in the body of this Form 6-K.
Material Changes
The filing text does not explicitly detail material changes in financial performance or operations between the 2005 and 2006 periods. It confirms that independent auditors (Samil PricewaterhouseCoopers) have expressed an opinion on the financial statements for both years.
Guidance, Outlook, and Risks
Forward-Looking Statements: The filing includes a standard disclaimer regarding forward-looking statements, noting they are based on current assumptions and involve risks.
Identified Risks and Uncertainties:
- Ability to diversify revenue streams.
- Timely collection of license fees and royalty payments from overseas licensees.
- Success in acquiring, developing, licensing, launching, marketing, or operating new online games.
- Competition in a highly competitive industry.
- Ability to anticipate and access technological developments.
- Recruitment and retention of quality employees during growth.
- Implementation of growth strategies.
- Global economic and political conditions.
Management Commentary: No specific management commentary on future performance or strategic initiatives is provided in the text beyond the risk factors.
Investor Verification Checklist
- Review Exhibit 99.1 for the actual audited non-consolidated financial statements (balance sheets, statements of operations, and cash flows) for 2005 and 2006.
- Verify the specific revenue and profit figures for the year ended December 31, 2006, as they are not listed in the summary text.
- Assess the company's reliance on Ragnarok Online versus other titles for revenue diversification.
- Monitor the status of royalty collections from international licensees, particularly in key markets like Japan and Taiwan.
- Check subsequent filings for updates on the development pipeline of new online games.