NEW YORK, June 13 /PRNewswire-FirstCall/ -- Atari, Inc. (OTC Pink Sheets: ATAR), an interactive entertainment company, announced today results for its fourth quarter of fiscal 2008 and its March 31, 2008 year-end.
Net revenue for the fourth quarter ended March 31, 2008, was $15.3 million versus $26.9 million in the comparable year-earlier period. Publishing net revenue was $13.5 million, versus $25.8 million in the prior year, while distribution revenue was $1.8 million, versus $1.1 million in the comparable year-earlier period.
Net loss for the fourth quarter ended March 31, 2008 was $3.7 million, or $0.27 loss per share, compared to net loss of $61.7 million, or $4.58 loss per share, in the year-earlier period. Without restructuring charges, the net loss for the fourth quarter ended March 31, 2008 would have been a loss of $1.8 million or $0.13 loss per share.
Net revenue for the year-ended March 31, 2008, was $80.1 million versus $122.3 million in the comparable year-earlier period. Publishing net revenue was $69.8 million, versus $104.7 million in the prior year, while distribution revenue was $10.3 million, versus $17.6 million in the comparable year-earlier period.
Net loss for the year-ended March 31, 2008 was $23.6 million, or $1.75 loss per share, compared to net loss of $69.7 million, or $5.17 loss per share, for fiscal 2007. Without restructuring charges, the net loss for the year-ended March 31, 2008 would have been a loss of $17.1 million or $1.27 loss per share.
Atari, Inc. will not be holding a conference call for the fourth quarter and year ended March 31, 2008. The Company expects to file its Annual Report on Form 10-K for the year-end March 31, 2008 before the June 29, 2008 deadline. Financial statements and accompanying footnotes will be contained in the Annual Report on Form 10-K for the year-end March 31, 2008 and can be obtained on-line at http://www.atari.com/ once filed.
About Atari, Inc.
New York-based Atari, Inc. (OTC Pink Sheets: ATAR) publishes and distributes interactive entertainment software in the U.S. The 1,000+ titles that are published and distributed by the Company include hard-core, genre-defining franchises such as Test Drive(R); and mass-market and children's franchises such as Dragon Ball Z(R). Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR- 0010478248), 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.
ATARI, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) Fourth Fourth Quarter Quarter Ended Ended Year Ended Year Ended March 31, March 31, March 31, March 31, 2007 2008 2007 2008 Net revenues $26,946 $15,287 $122,285 $80,131 Costs, expenses, and income: Cost of goods sold 16,333 6,803 72,629 40,989 Research and product development expenses 10,087 1,175 30,077 13,599 Selling and distribution expenses 4,501 3,529 25,296 19,411 General and administrative expenses 5,471 3,778 21,788 17,672 Restructuring expenses 150 1,819 709 6,541 Impairment of goodwill 54,129 -- 54,129 -- Gain on sale of intellectual property -- -- (9,000) -- Gain on sale of development studio assets -- -- (885) -- Atari trademark license expense 554 554 2,218 2,218 Depreciation and amortization 740 365 2,968 1,563 Total costs, expenses, and income 91,965 18,023 199,929 101,993 Operating (loss) (65,019) (2,736) (77,644) (21,862) Interest income (expense), net 115 (597) 301 (1,452) Other income 19 19 77 53 (Loss) before (benefit from) provision for income taxes (64,885) (3,314) (77,266) (23,261) (Benefit from) provision for income taxes (6,453) 73 (10,680) 73 (Loss) from continuing operations (58,432) (3,387) (66,586) (23,334) (Loss) from discontinued operations of Reflections Interactive Ltd, net of tax provision of $7,559 and $0, respectively (3,271) (280) (3,125) (312) Net (loss) $(61,703) $(3,667) $(69,711) $(23,646) Basic and diluted net (loss) per share: (Loss)from continuing operations $(4.34) $(0.25) $(4.94) $(1.73) (Loss) from discontinued operations of Reflections Interactive Ltd, net of tax (0.24) (0.02) (0.23) (0.02) Net (loss) $(4.58) $(0.27) $(5.17) $(1.75) Basic weighted average shares outstanding 13,477 13,478 13,477 13,478 Diluted weighted average shares outstanding 13,477 13,478 13,477 13,478 ATARI, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) March 31, March 31, 2007 2008 ASSETS Current assets: Cash $7,603 $11,087 Accounts receivable, net 6,473 640 Inventories, net 8,843 4,276 Due from related parties 1,799 885 Prepaid expenses and other current assets 10,229 8,188 Assets of discontinued operations 645 -- Total current assets 35,592 25,076 Property and equipment, net 4,217 6,313 Security deposits 1,940 1,373 Other assets 1,070 671 Total assets $42,819 $33,433 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) Current liabilities: Accounts payable $11,013 $5,378 Accrued liabilities 13,381 14,472 Royalties payable 4,282 2,825 Due to related parties 5,703 1,197 Credit facility -- 14,000 Total current liabilities 34,379 37,872 Due to related parties - long term 1,912 3,576 Related party license advance -- 5,296 Long-term liabilities 3,434 7,101 Total liabilities 39,725 53,845 Commitments and contingencies Stockholders' equity (deficiency): Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued or outstanding -- -- Common stock, $0.10 par value, 30,000,000 shares authorized, 13,477,920 and 13,477,920 shares issued and outstanding at March 31, 2007 and March 31, 2008, respectively 1,348 1,348 Additional paid-in capital 760,527 760,712 Accumulated deficit (761,299) (784,945) Accumulated other comprehensive income 2,518 2,473 Total stockholders' equity (deficiency) 3,094 (20,412) Total liabilities and stockholders' equity (deficiency) $42,819 $33,433
