Atari Reports Losses

Officials from French publisher Atari have today announced the company’s financial results for the fiscal 2004 second quarter and the six months ended September 30. Net revenue for the second quarter was $60.6 million compared to $109.4 million at the same time last year. Net loss for the quarter was $28.7 million, prior to a one-time non-cash dividend relating to the Company's recent recapitalization and public offering. Including the $39.4 million dividend, net loss for the quarter was $68.1 million, or $0.90 per share, compared to net income of $731,000, or $0.01 per share, last year. Net revenue for the six-month period ended September 30 was $211.9 million versus $239.0 million in the same period last year. Net loss for the six-month period was $4.9 million. Including the $39.4 million dividend, net loss for the six-month period was $44.3 million, or $0.61 per share, compared to net income of $22,000, or $0.00 per share, last year. The company puts the disappointing second quarter loss down to a purposeful lack of new releases during a traditionally quiet time of year for the video games business. Nevertheless the company remained the number two publisher in the US (behind Electronic Arts) and revenues for the forthcoming quarter are predicted at between $214 and $235 million, with an income of between $28 and $36 million. Results for the entire fiscal year are estimated at a revenue of between $560 and $590 million, with a net income of $35 to $45 million.