Atari Back In Black News

Atari has released its financial results for the second quarter of fiscal 2007, ending September 30th, which has seen the publisher's decision to sell most of its internal studios and other money-saving tactics begin to pay off.

Whilst net revenue for the quarter has dropped by just under $10 million on the year, from $38.4 million (£20.0 million) to $28.6 million (£14.9 million), Atari recorded a net income of $300,000 (£156,500), up dramatically from the $25.2 million (£13.1 million) loss in Q2 2006. The six-month results follow a similar pattern, with a reduction of revenue from $62.2 million (£32.5 million) in the first half of Fiscal 2006 to $48.1 million (£25.1 million), whilst a staggering turnaround has seen net income increase from a loss of $58.0 million (£30.3 million) to a loss of $6.8 million (£3.5 million).

The results were released a day after Atari secured a three-year credit line with Guggenheim Corporation Funding worth $15 million (£7.8 million).

The publisher also announced some of the titles featuring in the remainder of fiscal 2007, which ends on March 31st 2007, including Arthur and the Invisibles, Bullet Witch, Hot PXL, Dragon Ball Z: Budokai Tenkaichi 2 for Wii, and Dungeons & Dragons: Tactics. Interestingly, the current-gen and PSP versions of Test Drive: Unlimited failed to get a mention, perhaps indicating a slight delay in its proposed February 2007 release following the recent acquisition of Atari's Melbourne House.

Announcing the results, David Pierce, President and Chief Executive Officer of Atari said, "Atari continues to execute on its plans...First and foremost, we have secured a three year $15 million credit facility with Guggenheim Corporate Funding, LLC, a prestigious financial partner. This facility will provide Atari with flexibility on our short-term working capital needs. Secondly, with the sale of the Shiny development studio, we have completed the divesture of our internal development studios streamlining our development operations. Finally, we are realizing the results of our previously announced cost reduction plans as general and administrative expenses are down 31%."

Mr. Pierce continued, "As we enter into our holiday season, Atari continues to deliver by releasing high-quality products to our consumers that utilize next-generation capabilities. We look forward to launching new products such as Dragon Ball Z: Budokai Tenkaichi 2 for Nintendo Wii and continuing to build on the world-wide success of Test Drive Unlimited and Never Winter Nights 2, both of which take advantage of opportunities on-line. Atari is focused on growing shareholder value."

We'll have more news shortly...