Atari trims sales, halves losses

  • By Luke Anderson, Brendan Sinclair, GameSpot UK
  • Posted Feb 13, 2008 12:08 pm PT

Troubled publisher posts holiday quarter results, says restructuring fees wiped out what would have been a $3.4 million profit.

It looks like investors may have to go elsewhere to ask the hard questions of Atari, as it has decided not to hold a conference call to discuss its results for the third quarter of the 2008 fiscal year.

The company reported $41.1 million in revenue for the quarter ended December 31, 2007, down 13 percent from the same quarter last year where it reported sales of $47.3 million. Subsequently, net loss for the quarter was $300,000, an improvement on the reported $600,000 net loss from the same period last year. Atari also noted that without restructuring charges of $3.7 million, the company would actually have turned a profit of $3.4 million in the quarter.

The quarterly report also brought word that Atari has run afoul of one of its creditors, BlueBay High Yield Investments. Atari defaulted on part of its agreement with the investment firm, which is also a majority shareholder in Atari's parent company, Infogrames. The publisher is trying to come to a resolution with BlueBay on the matter, but warns that such an outcome can't be guaranteed.

The iconic publisher has suffered a number of blows recently. CEO David Pierce resigned in November after just a year in the post, the publisher is once again in danger of delisting from the NASDAQ market, and the company admitted in an SEC filing that it has "substantial doubt about [its] ability to continue as a going concern."

27 Comments

  • Azwhtknight

    Posted Feb 15, 2008 4:40 am PT

    I hope they can pull out of it. There needs to be more competition out there to help with game design and competitiveness always leads to innovation in the long run. I just don't believe a monopoly leads to improvement as it is more likely to lead to complacency. Besides they have produced some good games too (Witcher anybody?). Good luck ATARI, I for one am pulling for you!

  • KingChainz31684

    Posted Feb 14, 2008 8:57 pm PT

    i really want Atari to lose the DBZ liscense i just don't see even burst limit being all that good. i mean i like DBZBT3 but i want something new and something a little more perfected.

  • ghost867

    Posted Feb 14, 2008 12:00 pm PT

    Poor Atari. Let's hope they can either get back on their feet, and start making quality games, or get absorbed into somebody else who has money, so their IPs can get some quality development.

  • BatrozX

    Posted Feb 14, 2008 11:54 am PT

    If something ever happens to Atari...like bankruptcy, Sega should buy the company and use it to keep flourishing. I don't wanna lose my DBZ games though.

  • MedevilDragon

    Posted Feb 14, 2008 11:14 am PT

    I blame the big bully EA for Atari's losses.

  • theKSMM

    Posted Feb 14, 2008 9:39 am PT

    It's always a shame when these iconic names go under.

  • VGuzz

    Posted Feb 14, 2008 8:50 am PT

    GAUNTLET FOR THE WII ONLINE... whatever with that crappy midway stuff... random dungeons and items leader boards and online = ATARI WINS.. I have Gauntlet 2 the arcade machine in my living room and still play it

  • FirecrestFlames

    Posted Feb 13, 2008 6:55 pm PT

    Test Drive Unlimited was awesome... make another, Atari, and I'll be sure to buy it.

  • 09231991

    Posted Feb 13, 2008 6:07 pm PT

    All I know is, when DBZ Burst Limit comes out, there gonna be on top again, Believe It!

  • CasinoOutlaw247

    Posted Feb 13, 2008 5:36 pm PT

    Atari is the Undertaker of the gaming world. Don't count them out yet!

  • kreisler

    Posted Feb 13, 2008 5:14 pm PT

    Please don't do this to me ... I STILL HOLD YOUR FREAKIN' SHARES DAMMIT! What's wrong with you ATARI???

  • bossyman15

    Posted Feb 13, 2008 5:10 pm PT

    if atari ever went down... Nolan Bushnell should try to buy back Atari!

  • TheKungFool

    Posted Feb 13, 2008 4:45 pm PT

    Bring back the 5200!
    Sorry, theres not much else to say. To be honest, I can't even tell you what games Atari has made lately, aside from those terrible Matrix games. That said, a 3D "Burger Time" might work.........

  • JackfnBurton

    Posted Feb 13, 2008 3:55 pm PT

    I've got a fever. And the only prescription is MORE COWBELL. Oh, also as I post every time there's Atari news, I think that 1,500 people should rush to mention that this isn't the same 'Atari' from the 1980's because it is absolutely essential to the survival of humanity that nobody thinks that. Dear God, imagine if someone DID think that. The world as we know it might...um...you know...totally continue on as though nothing had happened...wow...I guess nothing really WOULD happen. Gee whiz. Never mind.

  • x_maestro_x

    Posted Feb 13, 2008 3:20 pm PT

    damn!! too bad for atari...remember dreamcast...i think that was the begining of their downfall, not that it was a bad system but it was just swallowed by ps2...oh well SEGA!!! R.I.P

  • stillereize

    Posted Feb 13, 2008 3:14 pm PT

    Um, The Witcher is just yet another puzzle piece as to why Atari is in such a mess to begin with. Starts out strong and ends on a very weak note.

  • kuddles79

    Posted Feb 13, 2008 3:04 pm PT

    They made their mess, they can lie in it. I just hope they are alive long enough to pay the makers of The WItcher the royalties owed to them.

  • larlarbd

    Posted Feb 13, 2008 2:29 pm PT

    NOOOOOOOOOOOOOO. I love ATARI , save them ....... I still have my ATARI2600 ( No cartridges left though ).

  • X-RS

    Posted Feb 13, 2008 1:59 pm PT

    old or new atari, i dont hold much respect.

  • haesuse

    Posted Feb 13, 2008 1:51 pm PT

    dont fear, if the sh.t hits the fans there is always EA to buy and keep it going...if anything for sentimental values...after all this is Atari!

  • GameOverKayo

    Posted Feb 13, 2008 1:48 pm PT

    Like buzzguy said, this is not Atari.

  • earlgrey23

    Posted Feb 13, 2008 1:47 pm PT

    Meh, it won't disapear someone will buy the rights in bankruptcy court and start plastering it on stuff.

  • buzzguy

    Posted Feb 13, 2008 1:42 pm PT

    Make no mistake, this company is not the Atari that brought me such joy in 80's. It's still just crappy ol' Infogrames, but with the Atari moniker they purchased a few years ago.

  • minhas32

    Posted Feb 13, 2008 1:39 pm PT

    Atari lives

  • Sword-Hunter277

    Posted Feb 13, 2008 1:22 pm PT

    The good news is that Atari isn't dead yet.

    They still have a shot.

  • bradly_2795

    Posted Feb 13, 2008 1:10 pm PT

    Atari is one of the most recognizable names in the game business. It's a shame to see such misfortune coming to what once was a leader in this business.

  • jsmoke03

    Posted Feb 13, 2008 12:31 pm PT

    its sad, atari hasn't succeeded in such a long time. they need a AAA franchise to bring them back. i would hate to see the atari name disappear from gaming once again

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