Atari weathers transitional storm as US business grows
Full year results show massive losses but with the promise of profitability to come
French publisher Atari, previously known as Infogrames, has released details of its 2008/2009 financial year, with consolidated revenues up 51 per cent to EUR 136.4 million.
Growth in the US was up 82.3 per cent to EUR 93.9 million, while European publishing revenues rose by 9.6 per cent to EUR 42.2 million.
However, net losses for the company ballooned from EUR 51.1 million last year to a total of EUR 226.1 million. This increase was due to goodwill impairments and losses from its exit from the company's distribution business in Europe and Asia.
If the non-recurring cost of the company's latest transformation are excluded the net losses would stand at EUR 50.2 million, slightly less than the previous year. The company also expects to get back at least EUR 30 million in cash from the divesture of Distribution Partners, increasing its cash balance to EUR 35.9 million.
Following the surprise news of Phil Harrison's move to the role of non-executive director, the company has confirmed the new Atari Comex team as consisting of David Gardner (CEO and director), Jeff Lapin, (COO and director), Fabrice Hamaide (CFO), Jim Wilson (CEO of Atari, Inc.) and John Needham (CEO of Cryptic Studios).
For 2009/2010 Atari continues to predict breaking even or a small profit in the second half of the current financial year - excluding non-recurring items. During this time the company will increasingly focus on online titles, initially via the imminent Champions Online and eventually Star Trek Online.
Cryptic Studios are also working on the development of a series of new titles based on Atari's "existing and historically successful IPs". It is unclear though whether this refers to the original golden age Atari or newer Infogrames franchises.