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| Atari reports fiscal 2005 fourth quarter and year-end results Atari, Inc., June 14, 2005, announced financial results for the fiscal 2005 fourth quarter and year-ended March 31, 2005. ?We have accomplished many of our goals as we have completed the relocation of our publishing operations, transformed our senior management team and secured a new credit facility. Atari remains focused on growing our market share and increasing profitability to industry levels, thereby creating greater shareholder value,? stated Bruno Bonnell, Chairman, interim CEO and Chief Creative Officer of Atari. ?Atari stands for innovation and we seek to provide our consumers, both hardcore gamers and the mass-audience, the best in content. We are well positioned to exploit the industry?s technological advancements through Sony, Microsoft and Nintendo?s next generation of consoles and the rapid growth of the handheld, mobile, online and interactive television markets.? Net revenue for the year-ended March 31, 2005, was $395.2 million, excluding approximately $12.6 million of revenue from the discontinued operations of Humongous, versus $447.5 million, excluding approximately $21.5 million of revenue from the discontinued operations of Humongous, in the comparable year-earlier period. As the Company previously stated, it has assessed its assets and resources and has determined that certain operations do not sufficiently complement its strategic vision or creative direction. The Company plans to dispose of those non-core assets. One such divestiture will be its Humongous Entertainment studio assets and operations, which the Company anticipates will occur prior to the end of fiscal 2006. Including revenue from discontinued operations, net revenue for fiscal 2005 was $407.8 million compared to $469.0 million in fiscal 2004. Publishing net revenue excluding discontinued operations was $341.0 million versus $384.5 million in the prior year, while distribution revenue was $54.2 million versus $63.0 million in the comparable year-earlier period. Income attributable to common shareholders for fiscal 2005 was $5.7 million, or $0.05 per share, compared to a loss of $38.6 million, or $0.40 per share, in fiscal 2004. The Company previously announced on February 9, 2005, that it will begin to take steps to streamline its U.S. operations, including the closing of its studios in Santa Monica, California and Beverly, Massachusetts. In doing so, the Company recorded restructuring charges of $4.9 million. Excluding restructuring charges, net income for fiscal 2005 would have been $10.6 million, or $0.09 per share compared to $0.8 million, or $0.01 per share, prior to the $39.4 million, or $0.41 per share, one-time non-cash dividend relating to the Company?s September 2003 recapitalization and public offering. Net revenue for the fourth quarter ended March 31, 2005, was $62.7 million compared to $64.8 million in the comparable year-earlier period. Including revenue from discontinued operations of Humongous for the fourth quarters ended March 31, 2005 and 2004 of approximately $1.7 million and $1.6 million, respectively, net revenue for the fourth quarter ended March 31, 2005, would have been $64.4 million compared to $66.4 million in the comparable year-earlier period. Publishing net revenue, excluding discontinued operations, was $51.0 million compared to $49.4 million in the prior March quarter, while distribution revenue was $11.7 million compared to $15.4 million in the comparable year-earlier quarter. Revenue for the period was driven by the highly anticipated release of Dragon Ball Z: Sagas (PS2, Xbox and GameCube) and Act of War: Direct Action (PC), and supported by the continued sales of Dragon Ball Z: Budokai 3 (PS2) and the Atari Flashback Classic Game Console, among others. Loss attributable to common shareholders for the quarter was $9.1 million, or $0.07 per share, compared to a loss of $17.3 million, or $0.14 per share, in the year-earlier period. Excluding $4.9 million of restructuring charges, net loss for the quarter was $4.2 million dollars, or $0.03 per share. Mr. Bonnell continued, ?Fiscal 2006 will be a year of focus at Atari. We will be releasing fewer SKUs in fiscal 2006 than in fiscal 2005. By improving our business processes in order to release higher quality products on time and on budget and creating comprehensive global market initiatives to support them, we will be taking better advantage of our assets. We will continue to work with leading development studios and capitalize on our third-party distribution business.? Atari?s product lineup for fiscal 2006 is expected to include the following new releases: Dragon Ball GT: Transformation (GBA), Dragon Ball Z Budokai: Tenkaichi (PS2), Dragonshard (PC), Duel Masters: Shadow Code (GBA), Dungeons & Dragons Online (PC), Indigo Prophecy (PS2, Xbox and PC), Marc Ecko?s Getting Up: Contents Under Pressure (PS2, Xbox and PC), RollerCoaster Tycoon 3: Soaked (PC), The Matrix: Path of Neo (PS2, Xbox and PC), Timeshift (PC, Xbox), Tycoon City: New York (PC) among others. write your comments about the article :: © 2005 Game News :: home page |