Graphix Zone Inc.: The Irvine developer and...

Graphix Zone Inc.: The Irvine developer and publisher of interactive music and entertainment multimedia products reported that its losses widened in the second fiscal quarter, partly because of an increase in research and development expense.

The company posted a net loss of $2.6 million, or 69 cents a share, for the quarter ended Dec. 31, compared with a net loss of $779,566, or 31 cents a share, a year earlier. Revenue fell 52% to $324,129 from $673,985. In the first half, the company lost $2.9 million, or 84 cents a share, compared with a net loss of $1.7 million, or 69 cents a share, for the prior-year period. Revenue remained unchanged at $1.1 million.