Atari Posts $11.9 million Q1 Loss

Atari Posts $11.9 million Q1 Loss

Troubled publisher Atari has filed its delayed quarterly report, in which it expressed “substantial doubt about our ability to continue as a going concern.”

Net loss for the quarter ended June 30, 2007 was $11.9 million, or $0.89 per share, compared to net loss of $7.3 million, or $0.54 per share in the corresponding period a year earlier.

 

Net revenue was down from $19.5 million during the same period last year to $10.4 million.

 

Atari had previously failed to file its quarterly report for the period in question. The filing of Atari’s annual report was also delayed. In September, Atari posted net loss of $69.7 million for the year ended March 31, 2007.

 

In July Nasdaq notified Atari that its stock was subject to delisting, but granted the company an extension to November 5 to file its delayed 10-Q form. Atari then applied for an additional day, “and is awaiting their [Nasdaq’s] final determination,” having not filed its quarterly report until November 6.

 

Atari announced it would not be holding a conference call for the first quarter, but footnotes contained in its quarterly report gave some further insight into the publisher’s current plight. In a bid to improve its financial situation, Atari said it may have to reduce its workforce and suspend certain development projects.

 

“We continue to explore various alternatives to improve our financial position and secure other sources of financing which could include raising equity, forming both operational and financial strategic partnerships, entering into new arrangements to license intellectual property, and selling, licensing or sub-licensing selected owned intellectual property and licensed rights.

 

“We continue to examine the reduction of working capital requirements to further conserve cash and may need to take additional actions in the near-term, which may include additional personnel reductions and suspension of certain development projects during fiscal 2008”