Atari, Inc., an interactive entertainment company, announced today results for its third quarter of fiscal 2008 and has filed its Quarterly Report on Form 10-Q for the third quarter ended December 31, 2007.
Net revenue for the third quarter ended December 31, 2007, was $41.1 million versus $47.3 million in the comparable year-earlier period. Publishing net revenue was $35.2 million, versus $46.0 million in the prior year, while distribution revenue was $5.9 million, versus $1.3 million in the comparable year-earlier period.
Net loss for the third quarter ended December 31, 2007 was $0.3 million, or $0.03 loss per share, compared to net loss of $0.6 million, or $0.05 loss per share, in the year-earlier period. Without restructuring charges of $3.7 million, the loss for the third quarter ended December 31, 2007 would have been income of $3.4 million or $0.25 income per share.
Net revenue for the nine months ended December 31, 2007, was $64.8 million versus $95.3 million in the comparable year-earlier period. Publishing net revenue was $56.2 million, versus $78.8 million in the prior year’s nine month period, while distribution revenue was $8.6 million, versus $16.5 million in the comparable year-earlier period.
Net loss for the nine months ended December 31, 2007 was $20.0 million, or $1.48 loss per share, compared to net loss of $8.0 million, or $0.59 loss per share, in the year-earlier period.
As of December 31, 2007 and through February 12, 2008, Atari, Inc. was in violation of its financial covenants. BlueBay High Yield Investments (Luxembourg) S.A.R.L., Atari, Inc.’s lender and a majority shareholder of Infogrames Entertainment S.A., has not waived this violation and has entered into a forbearance agreement with Atari, Inc. which states its lender will not exercise its rights on its facility until the earlier of (i) March 3, 2008, (ii) additional covenant defaults except for the ones existing as of February 12, 2008 or (iii) if any action transpires which is viewed to be adverse to the position of the lender. Atari, Inc. continues to pursue a resolution with its lender, however, there is no guarantee a resolution will ultimately be made.
Atari will not be holding a conference call for the third quarter ended December 31, 2007. Financial statements and accompanying footnotes are contained in the Quarterly Report on Form 10-Q and can be obtained on-line at http://www.atari.com/.
About Atari, Inc.
New York-based Atari, Inc. (NASDAQ:ATAR) publishes and distributes interactive entertainment software in the U.S. The Company’s 1,000+ published titles distributed by the Company include hard-core, genre- defining franchises such as Test Drive(R); and mass-market and children’s franchises such Dragon Ball Z(R). Atari, Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), an interactive games publisher in Europe. For more information, visit http://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 actual occurrences 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.
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.
