Infogrames Q1 sales rise 13 percent

Last year, Infogrames Entertainment announced a restructuring plan that charted a new course aimed at resolving its $243 million in debt. Since then, the France-based publisher has faced a tumultuous uphill battle, posting losses in each of its subsequent quarters. However, the corporate parent of Atari today announced smoother sailing may be on the horizon. For its first quarter ending June 30, the publisher posted a sales gain of 13 percent to 50.1 million euros (approximately $68.5 million), compared to 44.4 million euros (approximately $60.7 million) a year ago.

While a positive gain, Infogrames financial report paints a lopsided portrait of its earnings. In Europe, the publisher's Q1 earnings rose 68 percent year-over-year to 34.4 million euros (approximately $47 million). However, those earnings are significantly offset by a dismal showing in the US, where it sales declined 51 percent, and a lackluster performance in Asia, where its revenue was flat. Infogrames did note that its US earnings are subject to finalization pending New York-based Atari's delayed first quarter financial statements.

Breaking down its sales figures, Infogrames attributed the vast bulk of its sales to the PlayStation 2. Compared with a 12 percent share last year, PlayStation 2 sales accounted for 32 percent of the company's sales in its first quarter. Also seeing a significant increase were sales on the Wii, PlayStation 3, and Xbox 360, which combined were up from 4 percent to 20 percent compared with last year. Nintendo DS and PlayStation Portable sales remained mostly flat, rising from 33 percent to 35 percent in combined sales.

While Infogrames' sales gains skew toward the modest, they mark a significant upswing in the company's recent fortunes. According to today's report, the publisher stands at 57.3 million euros (approximate $78.4 million) in debt as of June 30. As part of its plan to get out of the red, the publisher allowed Hasbro to repurchase the rights to several of its licensees for $19.8 million in July. Last week, Hasbro resold those rights to Electronic Arts.