In a trading update following the end of its financial year on June 30, 2008, SCi said it will report sales totaling £134 million and a loss before interest, taxes, depreciation and amortization, and excluding stock options and restructuring costs, of no more than £100 million.

The company labeled the 2007/2008 financial year one of “restructuring and transition” and said that the full year loss reflected the cancellation of and delay to a number of projects earlier this year as part of its wider restructuring initiatives.

During the second half of the financial year the company said it had made “good progress” with its cost reduction and re-structuring plan. It made additions to its board with the appointment of two new non-executive directors, Kevin Tsujihara and Aaron Brown, representing investors Time Warner and Thorson respectively, and the appointment of a new chief financial officer, Robert Brent.

SCi said that it was moving towards its target of reducing its staff numbers by 25 percent, citing the recent “substantial downsizing” of Pivotal Games, and that the transition of production services to Montreal and the integration of North American distribution with Warner Bros. were on track too. It will also sell of Eidos' Spanish distribution business Proein imminently.

Annual operating costs have been reduced by £14 million with associated one-off costs within the firm's original £7 million re-structuring estimate, said SCi, which ended the financial year with net cash of £28 million.

“We have a clear strategy in place and have taken decisive steps to become a studio-led business with a focus on cornerstone franchises and a flexible approach to distribution,” said CEO Phil Rogers.

“There has been substantial change and the business is in good shape to take advantage of the strong overall market for video gaming worldwide.”

SCi also confirmed that it will release Tomb Raider Underworld on November 18 in the US and on November 21 in Europe to capitalize on the run-up to the key holiday season.

Just Cause 2, Battlestations Pacific and an untitled Batman title are the highlights of SCi’s second half release schedule.