Atari posts $0.3 million Q3 loss

Atari has posted its Q3 financial results, showing net revenue of USD 41.1 million with a net loss of USD 0.3 million.

The loss was attributable to restructuring charges of USD 3.7 million - without them, Atari would have posted a USD 3.4 million gain.

Revenue declined 13 per cent from the same period of the prior year. Publishing net revenue amounted to USD 35.2 milion; distribution revenue was USD 5.9 million.

Atari also reported that from December 31, 2007 through February 12, 2008 the company has been in violation of its financial covenants. BlueBay High Yield Investments, Atari's lender and a majority shareholder of Infogrames, has not waived this violation.

BlueBay has entered into a forbearance agreement with Atari stating that it will not exercise its rights on its facility until March 3, 2008, provided that no further covenant defaults or adverse actions transpire before that time.

Atari said that it continues to pursue a resolution with the lender.