Atari Announces General and Administrative Overhead Action Plan
Reduction of approximately 20% of the total workforce
NEW YORK, May 1, 2007: -- Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced a reorganization of its general and administrative functions.
The reorganization plan reduces Atari's total workforce by approximately 20%, which includes a reduction of administrative workforce of approximately 26%. This plan was approved by the Board of Directors on April 10, 2007 and communication to employees was completed on April 30, 2007. The Company anticipates the workforce reductions to be completed by July 31, 2007 and will record a restructuring charge during fiscal 2008 of approximately $0.8 million to $1.1 million.
"We expect that today's reorganization will continue to reduce Atari's general and administrative cost," stated David Pierce, President and Chief Executive Office of Atari, Inc. "These actions, though difficult, are a significant first step in reorganizing Atari and demonstrate our commitment to restoring shareholder value."
About Atari, Inc.
New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre- defining franchises such as Test Drive ® ; and mass-market and children's franchises such Dragon Ball Z ® . Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), an interactive games publisher in Europe. For more information, visit http://www.atari.com.
Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, and GameStop; delays in product development and related product release schedules; inability to secure capital; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings.
The Company undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in the Company's expectations.