Atari Reports Fiscal 2007 Second Quarter Results
NEW YORK, Nov. 9 /PRNewswire-FirstCall/ -- Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced financial results for the fiscal 2007 second quarter ended September 30, 2006.
Net revenue for the quarter ended September 30, 2006, was $28.6 million versus $38.4 million in the comparable year-earlier period. Publishing net revenue was $23.1 million versus $22.6 million in the prior year period, while distribution revenue was $5.5 million versus $15.8 million in the comparable year-earlier period.
Net income for the fiscal 2007 second quarter was $0.3 million, or $0.00 per share, compared to a net loss of $25.2 million, or $0.20 per share, in the year-earlier period. Loss from continuing operations for the second quarter of fiscal 2007 was $9.5 million, or $0.07 per share, compared to a loss from continuing operations of $22.3 million, or $0.18 per share, in the second quarter of fiscal 2006.
Net revenue for the six-month period ended September 30, 2006, was $48.1 million versus $62.2 million in the comparable year-earlier period. Publishing net revenue was $32.9 million versus $35.0 million in the prior six-month period, while distribution revenue was $15.2 million versus $27.2 million in the comparable year-earlier period.
Net loss for the six-month period was $6.8 million, or $0.05 per share, compared to net loss of $58.0 million, or $0.47 per share, in the year-earlier period. Loss from continuing operations for the six-month period of fiscal 2007 was $14.1 million, or $0.10 per share, compared to a loss of $52.5 million, or $0.43 per share, in the six month period of fiscal 2006.
"Atari continues to execute on its plans," stated David Pierce, President and Chief Executive Officer of Atari. "First and foremost, we have secured a three year $15 million credit facility with Guggenheim Corporate Funding, LLC, a prestigious financial partner. This facility will provide Atari with flexibility on our short-term working capital needs. Secondly, with the sale of the Shiny development studio, we have completed the divesture of our internal development studios streamlining our development operations. Finally, we are realizing the results of our previously announced cost reduction plans as general and administrative expenses are down 31%."
Mr. Pierce continued, "As we enter into our holiday season, Atari continues to deliver by releasing high-quality products to our consumers that utilize next-generation capabilities. We look forward to launching new products such as Dragon Ball Z: Budokai Tenkaichi 2 for Nintendo Wii and continuing to build on the world-wide success of Test Drive Unlimited and Never Winter Nights 2, both of which take advantage of opportunities on-line. Atari is focused on growing shareholder value."
Atari's product lineup for the remainder of fiscal 2007 is expected to include the following new releases:
Arthur and the Invisibles (PlayStation ® 2 computer entertainment system, Nintendo DS TM , Game Boy ® Advance and Windows), Bullet Witch TM (Xbox 360 TM video game and entertainment system from Microsoft) Dragon Ball Z ® : Budokai Tenkaichi TM 2 (Nintendo ® Wii), DUNGEONS & DRAGONS ® : Tactics TM (PSP ® (PlayStation ® Portable) system), and HOT PXL (PSP ® (PlayStation ® Portable) system), among others.
Atari will host a teleconference with a simultaneous webcast at 5:00 p.m. Eastern Time today to discuss the Company's fiscal 2007 second quarter results. To access the teleconference, 1-800-291-5365 (domestic) or 1-617-614-3922 (international), access code 71919682, or listen to it live via the Internet by accessing the Company's Web site ( www.atari.com). For those unable to listen to the live broadcast, a replay will be available on the Company's Web site or by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international), playback access code 95544564, beginning approximately one hour after the conclusion of the call and available through November 14, 2006.
About Atari
New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard- core, genre-defining franchises such as Test Drive ® and Deer Hunter ® ; and mass-market and children's franchises such as Nickelodeon's Dora the Explorer TM , and Dragon Ball Z ® . Atari, Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. For more information, visit 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 our actual results 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. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, GameStop and EB Games; delays in product development and related product release schedules; inability to secure capital; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings.
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.