Atari To Delay Q4, Yearly Report

Atari has announced that it plans to delay the public release of its fiscal 2007 financial earnings in order to “make a final determination regarding the amount of a goodwill impairment charge” for the company's fourth quarter and year-end financial reports. Atari now expects the earnings statements, which were due to be filed today, to be issued “in late June.” The publisher said in an official statement, “Although the Company has not finalized its analysis, it now estimates that the charge will be equal to all or a substantial portion of the $54.1 million of goodwill that was on the Company's books before the impairment charge.” According to Atari, net revenue for the year ended March 31, 2007 was approximately $121.6 million, and without taking the charge into account the company's net loss for the year was about $17.2 million. The news comes following the earlier announcement of Atari's restructuring plan, which will see an overall employee reduction of 20 percent, including a 26 percent reduction in administrative positions. In May the company also announced the temporary appointment of vice president and controller Arturo Rodriguez as the company's chief financial officer following the departure of Infogrames founder and CEO Bruno Bonnell.