Atari has reported increased sales and losses for the financial year ended March 31, 2009.

Consolidated revenues were up 51 percent to €136.4 million ($191.3m/£118.9), largely driven by an increase in sales at the company’s US distribution business.

However, fiscal year losses totalled €226.1 million ($317.1/£197.2), compared to €51.1 million ($71.7m/£44.6) the previous year.

“The company realised substantial write-offs and goodwill impairments on its publishing operations as well as losses from discontinued operations due to the exit of its distribution business in Europe and Asia. These developments are all associated with the acceleration of the sale of the distribution business, focusing its business on fewer, high quality titles and on migrating the company online,” Atari firm said in a statement.

Excluding costs of the transformation, net losses for the year amounted to €50.2 million ($70.4m/£43.8).

“To improve the cash position the company has reorganised the business to focus on more cost effective mass-market games and online. As such, the company has cancelled projects which do not meet higher return on investment criteria and require significant working capital investments,” the company added.

Earlier today the company announced that Phil Harrison has left his position as Atari president to take on the role of non-executive director at the firm.