Mark Androvich
22:51 (BST)
02/07/2007
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Atari officially reports $71.3 million loss
Goodwill impairment charge increases losses
Atari has announced that it will report a wider-than-expected loss for the fiscal year ended March 31.
As reported last month, Atari delayed filing its annual report in order to determine the amount of a goodwill impairment charge related to erosion of its market capitalisation.
The company now says it will report a loss of USD 71.3 million, or USD 5.29 a share, compared with a lost of USD 69 million for the prior year. Without the goodwill impairment charge, Atari would have posted a loss of USD 17.2 million, or USD 1.28 per share.
In April, Atari's parent company, Infogames Entertainment, replaced founder Bruno Bonnell with a new CEO, Patrick Leleu. In early May, Atari cut its workforce by twenty per cent.
The original Atari was founded in 1972 by Nolan Bushnell and Ted Dabney. Infogrames acquired the Atari name from its purchase of Hasbro Interactive and officially changed the US subsidiary's name to Atari Inc. in 2003.
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