Paul Loughrey
12:42 (BST)
10/08/2006
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IP sales aid Atari in reducing Q1 loss
Troubled publisher aims to continue restructuring plans
Atari has revealed its first quarter financial results for fiscal 2007, showing significantly reduced losses as a result of the company's continued efforts to streamline its product portfolio.
Net revenue for the quarter ended June 30th was posted at US$ 19.5 million (15.2 million Euro), a drop from US$ 23.9 million (18.6 million Euro) for the same period a year earlier.
Publishing net revenue was US$ 9.8 million (7.6 million Euro) and distribution net revenue was US$ 9.7 million (7.5 million Euro), compared to US$ 12.4 million (9.6 million Euro) and US$ 11.5 million (8.9 million Euro) respectively for the comparable period in 2005.
In spite of the decreased revenues, Atari posted a net loss of US$ 7.1 million (5.5 million Euro) for the quarter, showing a massive improvement on the US$ 32.8 million (25.5 million Euro) loss in the same quarter last year.
Atari's chairman, CEO and chief creative officer, Bruno Bonnell, commented: "We previously announced plans to streamline our portfolio of titles and our operations. Since those announcements, we have divested ourselves of Timeshift, Stuntman, Driver, and our Reflections studio, raising approximately US$ 37 million (28.8 million Euro) for investment in our future."
The publisher has previously announced plans to focus on titles with mass market appeal, in addition to leveraging its IP in additional territories and maximising back catalogue revenue through the launch of its budget GamersFIRST programme.
Looking ahead, Bonnell remains confident that continued plans to change the publisher's operating process and product suite will ensure a steady return to profitability.
"We are starting to see the results from our previously announced cost savings initiatives as we have reduced general and administrative expenses by 32 per cent in our fiscal 2007 first quarter," he stated.
"As we look forward, we are focused on improving profitability, releasing high quality product such as Test Drive Unlimited for Xbox 360, which will take advantage of next generation online capabilities and growing shareholder value."
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