Atari losses down in full year results
Revenues fall by almost half as company seeks higher margins
Following news that it is divest its interest in Star Trek Online developer Cryptic Studios, Atari has announced full year financial results that show losses more than half that of the previous year.
The French registered company saw its net loss shrink from €19.4 million ($27.5m) shrink to €6.2 million ($8.8m) in the last 12 months. This was attributed to lower restructuring costs than the previous year, improved financing expenses, and smaller losses from discontinued operations.
However, the figures are also affected by registering Cryptic as a "discontinued operation" - removing their results from the overall calculations.
At the same time Atari's revenues fell by 49 per cent to €56.7 million ($80.3m), although the company claims that this is in line with its predictions - and overall strategy of fewer but more profitable releases.
Actual current operating income for the year saw a profit of €0.5 million ($0.7m), compared to a loss of €6.2 million ($8.8m) the previous year. This was attributed to higher margins and better performing products, as well as a sharp reduction in research and development and general and administrative expenses.
"Although market conditions remained challenging, the achievements that we have made in online/digital games, a more focused publishing strategy and licensing have resulted in a significant improvement in current operating income, exceeding the company's guidance," said CEO Jim Wilson.
"For 2011/2012, we will seek to expand further in the fast-growing casual/social/online and mobile games segments and drive the company to further grow its franchise licensing business. In line with the ongoing strategy, we have recently initiated projects to improve the cash structure and benefit from a more flexible organisation focused on leveraging Atari's strong catalogue of popular games and strategic third party franchises," he added.
For the current financial year the company expects to report further improvements in actual current operating income in the first semester and to maintain profitability in the second, although no specific figures have been provided.