Among the 24 titles being released by Atari during the holiday period, several titles already in stores and soon to be released are already outperforming the Company's expectations, based on initial sell-through and pre-orders. These titles include Civilization III: Conquests (PC); titles from the hugely popular Dragon Ball Z (DBZ) franchise, including DBZ: Budokai (GameCube), DBZ: Budokai Greatest Hits (PS2), DBZ: Budokai 2 (PS2), and DBZ: Taiketsu (GBA); Dungeons & Dragons Heroes (Xbox; released in the prior quarter); Neverwinter Nights Gold Edition (PC) and Neverwinter Nights: Hordes of the Underdark (PC); and Temple of Elemental Evil (PC; released in the prior quarter).
"This is shaping up to be a very solid holiday season for us," said Wim Stocks, Executive Vice President, Sales & Marketing for Atari, Inc. "Retail orders for Atari's products are strong, and for a number of titles have actually already been increased. Our highly favorable retail relationships, combined with solid consumer sales, position Atari for one of its most dynamic holiday seasons ever."
Among Atari's titles already released for the holiday season are: Backyard Hockey (GBA) and Backyard Basketball (PS2, PC); Beyblade: Ultimate Blader Jam (GBA); Civilization III: Conquests (PC); Deer Hunter 2004 (PC); Dragon Ball Z: Budokai (GameCube) and Dragon Ball Z: Budokai Greatest Hits (PS2); Gothic 2 (PC); Kya: Dark Lineage (PS2); Magic The Gathering: Battlegrounds (Xbox Live, PC); Neverwinter Nights Gold Edition (PC); Risk: World Domination (PS2); and Terminator 3: Rise of the Machines (PS2, Xbox, GBA), among others.
Upcoming Atari holiday releases include: Deer Hunter PS2 Online; DBZ: Budokai 2 (PS2) and DBZ: Taiketsu (GBA); Horizons (PC); Mission: Impossible - Operation Surma (PS2, Xbox, GBA); Neverwinter Nights: Hordes of the Underdark (PC); Terminator 3: War of the Machines (PC); and YuYu Hakusho: Spirit Detective (GBA), among others.
With the stronger-than-anticipated performance of so many titles in its holiday lineup already evident, Atari has opted to move three titles from the holiday quarter into the less crowded January-March quarter, where they can enjoy greater attention in the marketplace. These titles are Dead Man's Hand (Xbox Live), Trivial Pursuit Unhinged (PS2 Online, Xbox Live), and Unreal 2: The Awakening (Xbox).
The Company reaffirms its guidance for the fiscal 2004 third quarter ended December 31, 2003, and anticipates quarterly net revenue between $215 million and $235 million, and net income between $28 million and $36 million, or between $0.23 and $0.30 per share. The Company also reaffirmed its fiscal 2004 net revenue guidance of $560 million to $590 million and net income of $35 million to $45 million, or $0.36 to $0.46 per share, prior to a one-time non-cash dividend relating to the Company's recent recapitalization and public offering.