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Atari's Q3 2007 Financial Results Still No Good

by Rainier on Feb. 8, 2007 @ 2:38 p.m. PST

Atari announced financial results for its Q3 2007 ending December 31, 2006. Net revenue dropped more than 50% from last year's $100M to $47.3M, while net revenue went from $81.6M to $46M. Hopefully next month's lineup will bring change to that, as Atari will release Bullet Witch (X360), DBZ: Shin Budokai 2 (PSP), and Test Drive Unlimited (PC/PS2), along with other titles.

Net revenue for the quarter ended December 31, 2006, was $47.3 million versus $100.0 million in the comparable year-earlier period. Publishing net revenue was $46.0 million versus $81.6 million in the prior year, while distribution revenue was $1.3 million versus $18.4 million in the comparable year-earlier period.

Net loss for the fiscal 2007 third quarter was $0.7 million, or $0.05 per share, compared to a net loss of $4.8 million, or $0.35 per share, in the year-earlier period. Income from continuing operations for the third quarter of fiscal 2007 was $1.7 million, or $0.13 per share, compared to a loss from continuing operations of $2.3 million, or $0.17 per share, in fiscal 2006.

Net revenue for the nine-month period ended December 31, 2006, was $95.3 million versus $162.2 million in the comparable year-earlier period. Publishing net revenue was $78.8 million, versus $116.6 million in the prior nine-month period, while distribution revenue was $16.5 million, versus $45.6 million in the comparable year-earlier period.

Net loss for the nine-month period was $7.5 million, or $0.56 per share, compared to net loss of $62.8 million, or $4.96 per share, in the year-earlier period. Loss from continuing operations for the nine-month period of fiscal 2007 was $12.4 million, or $0.92 per share, compared to a loss of $54.8 million, or $4.33 per share, in fiscal 2006.

"Atari continues to focus on improving product quality and is committed to growing shareholder value. Specifically, Never Winter Nights 2, Dragon Ball Z: Budokai Tenkaichi 2 and Test Drive Unlimited achieved our targets of quality and market place acceptance on a global basis," stated David Pierce, President and Chief Executive Officer of Atari.

Atari's product lineup for the remainder of fiscal 2007 is expected to include the following new releases:

Bullet Witch (Xbox 360), Dragon Ball Z: Shin Budokai 2 (PSP system), Test Drive Unlimited (PC and PS2), among others.

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