Atari's Future in Question

[Colin]

Holiday quarter sales sink, the CFO resigns, and the company doubts its future as a "going concern."

by David Adams

February 9, 2006 - Atari reported glum earnings in its third-quarter financials today, showing declining revenues and nearly $5 million in net loss. The company blames delayed titles and an industry-wide slow holiday season for the low numbers. Recent troubles, however -- including the just-announced resignation of Atari's CFO -- leave the company pondering what future it has left.

For the third quarter ended December 31, 2005, Atari reports revenues of $100.8 million, a 36 percent decrease from the $156.4 million reported in the same period last year. More dramatically, Atari reports a third-quarter net loss $4.8 million, whereas last year's third quarter saw a net income of $19.6 million.

Year-to-date earnings tell a similar story: the company reports nine-month net revenues of $163.4 million versus $332.5 million last year, and a net loss of $62.8 million in the first three quarters, as opposed to a net income of $14.8 million in the same period last year.

News Atari

OUCH.

[Dick Splash]

Infogrames bought the Atari name and then used that as their trading name. That brand name was a lot bigger than Infogrames. Bruno has always wanted to break into the US market. They really had it going in the late 90's, but as a publisher has suffered from the lack of really good titles.

They turned down Rainbow Six back in '98 when RSE were looking for a publisher

It's tough at the top.

DS

[Colin]

They turned down Rainbow Six back in '98 when RSE were looking for a publisher

Thats gota Hurt.