Atari Misses SEC Filing, Infogrames Shares Drop

Beleaguered U.S. publisher and developer Atari, which is closely tied to French parent firm Infogrames and recently posted poor preliminary results for its quarter ending December 31, 2005, producing only $100.8 million in revenue and posting a net loss of $4.8 million in the busiest months of the year, has now delayed the official SEC filing of its results. A short statement from Atari simply read: "The Company and its independent auditors, Deloitte & Touche LLP have not completed their required review of the interim financial results", and the implication that there may be complex issues requiring a second look have soured analysts further on the firm and its French parent Infogrames. Fideuram Wargny analyst Jean-Michel Salvador commented to Reuters of the announcement: "The delay is not very reassuring and stokes fears there could be more nasty surprises in store. It's adding to fears sparked by news the group was looking for funds." Infogrames shares were off another 7% to 0.81 euros, with this issue adding to previously reported debut problem at the parent company. In addition, there is no further update on recent news that the U.S. company has defaulted on its loans from HSBC Business Credit, which is currently denying Atari further credit. HSBC said that it may advance Atari more capital after reviewing a revised business plan, but the company admits that this may cause future issues with refinancing.