Atari, that bastion of the glory days of (1980s) computer and videogames, is yet again nearing financial collapse, having just filed its delayed quarterly report, which expresses “substantial doubt about our ability to continue as a going concern.”
The company’s loss for the quarter up to June 30, 2007 was $11.9 million (approx £5.6m), or $0.89 (42p) per share, compared with a net loss of $7.3 million (£3.4m), or $0.54 (25p) per share in the corresponding period a year earlier.
Net revenue was down from $19.5 million (£9.2m) during the same period last year to $10.4 million (£4.9m).
Atari said in a statement: “We continue to explore various alternatives to improve our financial position and secure other sources of financing which could include raising equity, forming both operational and financial strategic partnerships, entering into new arrangements to license intellectual property, and selling, licensing or sub-licensing selected owned intellectual property and licensed rights.
“We continue to examine the reduction of working capital requirements to further conserve cash and may need to take additional actions in the near-term, which may include additional personnel reductions and suspension of certain development projects during fiscal 2008.”
Atari may not be able to look to its parent company, the France-based Infogrames Entertainment SA (IESA) to come to its rescue this time. Atari's report is brutal on the matter, stating: "Historically, we have relied on IESA to provide limited financial support to us, through loans or, in recent years, through purchases of assets. However, IESA has its own financial needs, and its ability to fund its subsidiaries' operations, including ours, is limited.
"Therefore, there can be no assurance we will ultimately receive any funding from IESA".
"The uncertainty caused by these above conditions raises substantial doubt about our ability to continue as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty."
Without Infogrames to support it (due to the French company's 'limited' ability; or because it knows when its own shareholders are on to a bad bet) Atari doesn't even have key franchises having sold Stuntman (to THQ), Driv3r (Ubisoft sale) and Timeshift (went to Vivendi) last year.
Oh well, at least it has still got Dragon Ball Z to rely on.
Or maybe not...
Apparently DBZ franchise owner, FUNimation, wants to terminate Atari's license option too. Atari's response in its report states: "While we believe we have valid defenses to the purported termination, in the event that FUNimation is successful in terminating the license agreements it could have a material adverse effect on our results of operations and financial position."
In short, Atari would more than likely once again enter the nether-world of "Once great - 20 years back - where is it now?" The effect this would also have on parent company, Inforgrames - shares in which were briefly suspended on the French stock market last year - could also be disastrous.
The company’s loss for the quarter up to June 30, 2007 was $11.9 million (approx £5.6m), or $0.89 (42p) per share, compared with a net loss of $7.3 million (£3.4m), or $0.54 (25p) per share in the corresponding period a year earlier.
Net revenue was down from $19.5 million (£9.2m) during the same period last year to $10.4 million (£4.9m).
Atari said in a statement: “We continue to explore various alternatives to improve our financial position and secure other sources of financing which could include raising equity, forming both operational and financial strategic partnerships, entering into new arrangements to license intellectual property, and selling, licensing or sub-licensing selected owned intellectual property and licensed rights.
“We continue to examine the reduction of working capital requirements to further conserve cash and may need to take additional actions in the near-term, which may include additional personnel reductions and suspension of certain development projects during fiscal 2008.”
Atari may not be able to look to its parent company, the France-based Infogrames Entertainment SA (IESA) to come to its rescue this time. Atari's report is brutal on the matter, stating: "Historically, we have relied on IESA to provide limited financial support to us, through loans or, in recent years, through purchases of assets. However, IESA has its own financial needs, and its ability to fund its subsidiaries' operations, including ours, is limited.
"Therefore, there can be no assurance we will ultimately receive any funding from IESA".
"The uncertainty caused by these above conditions raises substantial doubt about our ability to continue as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty."
Without Infogrames to support it (due to the French company's 'limited' ability; or because it knows when its own shareholders are on to a bad bet) Atari doesn't even have key franchises having sold Stuntman (to THQ), Driv3r (Ubisoft sale) and Timeshift (went to Vivendi) last year.
Oh well, at least it has still got Dragon Ball Z to rely on.
Or maybe not...
Apparently DBZ franchise owner, FUNimation, wants to terminate Atari's license option too. Atari's response in its report states: "While we believe we have valid defenses to the purported termination, in the event that FUNimation is successful in terminating the license agreements it could have a material adverse effect on our results of operations and financial position."
In short, Atari would more than likely once again enter the nether-world of "Once great - 20 years back - where is it now?" The effect this would also have on parent company, Inforgrames - shares in which were briefly suspended on the French stock market last year - could also be disastrous.
Companies:
Atari
Read More Like This
Comments
SuperSaiyan4 7 Nov 2007 13:53
1/4
Firstly I just want to point out that this is NOT the same Atari from the 80's. The company quite clearly pointed this out some time ago that they should not be confused with Atari from the 80's as its not the same company.
The company has published many crap games as this is very clear, they had great franchises but the games were usually rather terrible and had poor visuals.
I hope they lose the Dragonball Z franchise as if Atari wanted to make money they would have released it on the Xbox 360 as well. They chose the cheapest options being the PS2 and the Wii.
To make money you gots to spend money and being a 360 and PS3 owner well luckily I have the 60gb model so will be purchasing the PS2 version - heres hoping it works.
Had it been on the 360 I am sure many 360 owners would have bought the game as well.
The company has published many crap games as this is very clear, they had great franchises but the games were usually rather terrible and had poor visuals.
I hope they lose the Dragonball Z franchise as if Atari wanted to make money they would have released it on the Xbox 360 as well. They chose the cheapest options being the PS2 and the Wii.
To make money you gots to spend money and being a 360 and PS3 owner well luckily I have the 60gb model so will be purchasing the PS2 version - heres hoping it works.
Had it been on the 360 I am sure many 360 owners would have bought the game as well.
Daemon 7 Nov 2007 15:26
2/4
SuperSaiyan4 wrote:
To make money you gots to spend money
Would this be the same money they clearly stated (above, in the article) that they simply don't have? I can see how they totally should have spent that, yeah.
more comments below our sponsor's message
config 8 Nov 2007 10:15
3/4
Let's not getting picky here.
Atari hasn't been itself (the 1971 edition) since 1976, when Warner bought it and rent it asunder, creating Atari Corp (home) and Atari Games (arcade).
Since then both Ataris (Atarii?) have endured corporate wife swapping, gang rape, identity issues, death and resurrection.
Just take a look at the SPOnG's Atari company history to see just how un-Atari Atari has been for the last three decades.
Atari hasn't been itself (the 1971 edition) since 1976, when Warner bought it and rent it asunder, creating Atari Corp (home) and Atari Games (arcade).
Since then both Ataris (Atarii?) have endured corporate wife swapping, gang rape, identity issues, death and resurrection.
Just take a look at the SPOnG's Atari company history to see just how un-Atari Atari has been for the last three decades.
hollywooda 9 Nov 2007 11:04
4/4
E.T. finally caught up with them......