NEW YORK, June 13 /PRNewswire-FirstCall/ -- Atari, Inc. (OTC Pink Sheets:
ATAR), an interactive entertainment company, announced today results for its
fourth quarter of fiscal 2008 and its March 31, 2008 year-end.
Net revenue for the fourth quarter ended March 31, 2008, was $15.3 million
versus $26.9 million in the comparable year-earlier period. Publishing net
revenue was $13.5 million, versus $25.8 million in the prior year, while
distribution revenue was $1.8 million, versus $1.1 million in the comparable
year-earlier period.
Net loss for the fourth quarter ended March 31, 2008 was $3.7 million, or
$0.27 loss per share, compared to net loss of $61.7 million, or $4.58 loss per
share, in the year-earlier period. Without restructuring charges, the net
loss for the fourth quarter ended March 31, 2008 would have been a loss of
$1.8 million or $0.13 loss per share.
Net revenue for the year-ended March 31, 2008, was $80.1 million versus
$122.3 million in the comparable year-earlier period. Publishing net revenue
was $69.8 million, versus $104.7 million in the prior year, while distribution
revenue was $10.3 million, versus $17.6 million in the comparable year-earlier
period.
Net loss for the year-ended March 31, 2008 was $23.6 million, or $1.75
loss per share, compared to net loss of $69.7 million, or $5.17 loss per
share, for fiscal 2007. Without restructuring charges, the net loss for the
year-ended March 31, 2008 would have been a loss of $17.1 million or $1.27
loss per share.
Atari, Inc. will not be holding a conference call for the fourth quarter
and year ended March 31, 2008. The Company expects to file its Annual Report
on Form 10-K for the year-end March 31, 2008 before the June 29, 2008
deadline. Financial statements and accompanying footnotes will be contained
in the Annual Report on Form 10-K for the year-end March 31, 2008 and can be
obtained on-line at http://www.atari.com once filed.
About Atari, Inc.
New York-based Atari, Inc. (OTC Pink Sheets: ATAR) publishes and
distributes interactive entertainment software in the U.S. The 1,000+ titles
that are published and distributed by the Company include hard-core,
genre-defining franchises such as Test Drive(R); and mass-market and
children's franchises such as Dragon Ball Z(R). Atari, Inc. is a
majority-owned subsidiary of France-based Infogrames Entertainment SA
(Euronext - ISIN: FR- 0010478248), an interactive games publisher in Europe.
For more information, visit http://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 actual occurrences 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.
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.
ATARI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Fourth Fourth
Quarter Quarter
Ended Ended Year Ended Year Ended
March 31, March 31, March 31, March 31,
2007 2008 2007 2008
Net revenues $26,946 $15,287 $122,285 $80,131
Costs, expenses, and income:
Cost of goods sold 16,333 6,803 72,629 40,989
Research and product
development expenses 10,087 1,175 30,077 13,599
Selling and distribution
expenses 4,501 3,529 25,296 19,411
General and
administrative expenses 5,471 3,778 21,788 17,672
Restructuring expenses 150 1,819 709 6,541
Impairment of goodwill 54,129 -- 54,129 --
Gain on sale of
intellectual property -- -- (9,000) --
Gain on sale of
development studio assets -- -- (885) --
Atari trademark
license expense 554 554 2,218 2,218
Depreciation and
amortization 740 365 2,968 1,563
Total costs, expenses,
and income 91,965 18,023 199,929 101,993
Operating (loss) (65,019) (2,736) (77,644) (21,862)
Interest income
(expense), net 115 (597) 301 (1,452)
Other income 19 19 77 53
(Loss) before (benefit from)
provision for income taxes (64,885) (3,314) (77,266) (23,261)
(Benefit from) provision
for income taxes (6,453) 73 (10,680) 73
(Loss) from continuing
operations (58,432) (3,387) (66,586) (23,334)
(Loss) from discontinued
operations of Reflections
Interactive Ltd, net of tax
provision of $7,559
and $0, respectively (3,271) (280) (3,125) (312)
Net (loss) $(61,703) $(3,667) $(69,711) $(23,646)
Basic and diluted net
(loss) per share:
(Loss)from continuing
operations $(4.34) $(0.25) $(4.94) $(1.73)
(Loss) from discontinued
operations of
Reflections Interactive
Ltd, net of tax (0.24) (0.02) (0.23) (0.02)
Net (loss) $(4.58) $(0.27) $(5.17) $(1.75)
Basic weighted average
shares outstanding 13,477 13,478 13,477 13,478
Diluted weighted average
shares outstanding 13,477 13,478 13,477 13,478
ATARI, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, March 31,
2007 2008
ASSETS
Current assets:
Cash $7,603 $11,087
Accounts receivable, net 6,473 640
Inventories, net 8,843 4,276
Due from related parties 1,799 885
Prepaid expenses and other current assets 10,229 8,188
Assets of discontinued operations 645 --
Total current assets 35,592 25,076
Property and equipment, net 4,217 6,313
Security deposits 1,940 1,373
Other assets 1,070 671
Total assets $42,819 $33,433
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $11,013 $5,378
Accrued liabilities 13,381 14,472
Royalties payable 4,282 2,825
Due to related parties 5,703 1,197
Credit facility -- 14,000
Total current liabilities 34,379 37,872
Due to related parties - long term 1,912 3,576
Related party license advance -- 5,296
Long-term liabilities 3,434 7,101
Total liabilities 39,725 53,845
Commitments and contingencies
Stockholders' equity (deficiency):
Preferred stock, $0.01 par value, 5,000,000
shares authorized, none issued or
outstanding -- --
Common stock, $0.10 par value, 30,000,000
shares authorized, 13,477,920 and
13,477,920 shares issued and outstanding
at March 31, 2007 and March 31,
2008, respectively 1,348 1,348
Additional paid-in capital 760,527 760,712
Accumulated deficit (761,299) (784,945)
Accumulated other comprehensive income 2,518 2,473
Total stockholders' equity (deficiency) 3,094 (20,412)
Total liabilities and stockholders'
equity (deficiency) $42,819 $33,433
SOURCE Atari, Inc.
-0- 06/13/2008
/CONTACT: Arturo Rodriguez of Atari, Inc., +1-212-726-4234,
arturo.rodriguez@atari.com/
/Web site: http://www.atari.com /
(ATAR)
