Atari full-year revenue tanks
[UPDATE] Publishing revenues for fiscal year '06 down almost $200 million; full-year loss nears $70 million.
Neither the swashbuckling street sense of a Mark Ecko nor the charismatic powers of Neo could keep Atari Inc. from becoming unhinged this past year.
And unhinged it came. Atari today reported that over the past year ending March 31, 2006, it lost $67.1 million. Total revenues for the year were $218.7 million. Both figures are dramatically worse than what the company reported the previous year--then, Atari posted $407.8 in revenues and walked away with a profit on the year of $5.7 million.
"Fiscal 2006 was a challenging year for the industry," company CEO Bruno Bonnell said in a statement. "A shortage of new hardware coupled with a softness in consumer demand for current generation games dramatically impacted results. In addition, titles such as The Matrix: Path of Neo and Marc Ecko's Getting Up: Contents Under Pressure performed below our expectations."
For the January-March quarter ending March 31, revenue was $54.7 million, compared to $64.4 million in the prior year's fourth quarter. Net loss for the quarter was $4.3 million versus a loss of $9.1 million a year ago.
[CORRECTION: GameSpot incorrectly reported earlier that the company was planning reductions to staff during the present calendar year. According to an Atari rep, the staff cuts referred to in the call were those already taken, primarily those implemented in mid-February, 2006, when some 20 percent of the staff was reduced. "Atari is expecting to benefit from these costs savings in fiscal year '07," according to the rep.]
On the Nasdaq today, shares in Atari closed down just over a penny to $.60.