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Atari Reports Fiscal 2007 Third Quarter Results
Company: Atari
Date: 09 Feb 2007
NEW YORK, Feb. 8: Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced financial results for the fiscal 2007 third quarter and nine months ended December 31, 2006.
Net revenue for the quarter ended December 31, 2006, was $47.3 million versus $100.0 million in the comparable year-earlier period. Publishing net revenue was $46.0 million versus $81.6 million in the prior year, while distribution revenue was $1.3 million versus $18.4 million in the comparable year-earlier period.
Net loss for the fiscal 2007 third quarter was $0.7 million, or $0.05 per share, compared to a net loss of $4.8 million, or $0.35 per share, in the year-earlier period. Income from continuing operations for the third quarter of fiscal 2007 was $1.7 million, or $0.13 per share, compared to a loss from continuing operations of $2.3 million, or $0.17 per share, in fiscal 2006.
Net revenue for the nine-month period ended December 31, 2006, was $95.3 million versus $162.2 million in the comparable year-earlier period. Publishing net revenue was $78.8 million, versus $116.6 million in the prior nine-month period, while distribution revenue was $16.5 million, versus $45.6 million in the comparable year-earlier period.
Net loss for the nine-month period was $7.5 million, or $0.56 per share, compared to net loss of $62.8 million, or $4.96 per share, in the year-earlier period. Loss from continuing operations for the nine-month period of fiscal 2007 was $12.4 million, or $0.92 per share, compared to a loss of $54.8 million, or $4.33 per share, in fiscal 2006.
"Atari continues to focus on improving product quality and is committed to growing shareholder value. Specifically, Never Winter Nights 2, Dragon Ball Z®: Budokai Tenkaichi 2 and Test Drive Unlimited achieved our targets of quality and market place acceptance on a global basis," stated David Pierce, President and Chief Executive Officer of Atari.
Atari's product lineup for the remainder of fiscal 2007 is expected to include the following new releases:
Bullet WitchTM (Xbox 360), Dragon Ball Z®: Shin BudokaiTM 2 (PSP system), Test Drive Unlimited (PC and PlayStation®2 computer entertainment system), among others.
Atari will host a teleconference with a simultaneous webcast at 5:00 p.m. Eastern Time today to discuss the Company's fiscal 2007 third quarter results. To access the teleconference, please dial 1-866-700-6067 (domestic) or 1-617- 213-8834 (international), access code 63049782, or listen to it live via the Internet by accessing the Company's Web site (www.atari.com). For those unable to listen to the live broadcast, a replay will be available on the Company's Web site or by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international), playback access code 73767658, beginning approximately one hour after the conclusion of the call and available through February 13, 2007.
About Atari, Inc.
New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre- defining franchises such as The MatrixTM (Enter The Matrix and The Matrix: Path of Neo) and Test Drive®; and mass-market franchises such as Dragon Ball Z®. Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. For more information, visit www.atari.com.
Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, and GameStop; delays in product development and related product release schedules; inability to secure capital; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings.
The Company undertakes no duty to update any forward-looking statements to
conform the statement to actual results or changes in the Company's
expectations.
Net revenue for the quarter ended December 31, 2006, was $47.3 million versus $100.0 million in the comparable year-earlier period. Publishing net revenue was $46.0 million versus $81.6 million in the prior year, while distribution revenue was $1.3 million versus $18.4 million in the comparable year-earlier period.
Net loss for the fiscal 2007 third quarter was $0.7 million, or $0.05 per share, compared to a net loss of $4.8 million, or $0.35 per share, in the year-earlier period. Income from continuing operations for the third quarter of fiscal 2007 was $1.7 million, or $0.13 per share, compared to a loss from continuing operations of $2.3 million, or $0.17 per share, in fiscal 2006.
Net revenue for the nine-month period ended December 31, 2006, was $95.3 million versus $162.2 million in the comparable year-earlier period. Publishing net revenue was $78.8 million, versus $116.6 million in the prior nine-month period, while distribution revenue was $16.5 million, versus $45.6 million in the comparable year-earlier period.
Net loss for the nine-month period was $7.5 million, or $0.56 per share, compared to net loss of $62.8 million, or $4.96 per share, in the year-earlier period. Loss from continuing operations for the nine-month period of fiscal 2007 was $12.4 million, or $0.92 per share, compared to a loss of $54.8 million, or $4.33 per share, in fiscal 2006.
"Atari continues to focus on improving product quality and is committed to growing shareholder value. Specifically, Never Winter Nights 2, Dragon Ball Z®: Budokai Tenkaichi 2 and Test Drive Unlimited achieved our targets of quality and market place acceptance on a global basis," stated David Pierce, President and Chief Executive Officer of Atari.
Atari's product lineup for the remainder of fiscal 2007 is expected to include the following new releases:
Bullet WitchTM (Xbox 360), Dragon Ball Z®: Shin BudokaiTM 2 (PSP system), Test Drive Unlimited (PC and PlayStation®2 computer entertainment system), among others.
Atari will host a teleconference with a simultaneous webcast at 5:00 p.m. Eastern Time today to discuss the Company's fiscal 2007 third quarter results. To access the teleconference, please dial 1-866-700-6067 (domestic) or 1-617- 213-8834 (international), access code 63049782, or listen to it live via the Internet by accessing the Company's Web site (www.atari.com). For those unable to listen to the live broadcast, a replay will be available on the Company's Web site or by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international), playback access code 73767658, beginning approximately one hour after the conclusion of the call and available through February 13, 2007.
About Atari, Inc.
New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre- defining franchises such as The MatrixTM (Enter The Matrix and The Matrix: Path of Neo) and Test Drive®; and mass-market franchises such as Dragon Ball Z®. Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. For more information, visit www.atari.com.
Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, and GameStop; delays in product development and related product release schedules; inability to secure capital; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings.
The Company undertakes no duty to update any forward-looking statements to
conform the statement to actual results or changes in the Company's
expectations.
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