Atari Reports Fiscal 2004 Fourth Quarter and Year-End Results.Business Editors NEW YORK--(BUSINESS WIRE)--May 6, 2004 Atari, Inc. (Nasdaq: ATAR), a leader in interactive entertainment, today announced unaudited results for the fiscal 2004 fourth quarter and year ended March 31, 2004. Net revenue for the fourth quarter ended March 31, 2004, was $66.4 million compared to $84.7 million in the comparable year-earlier period. Publishing net revenue was $51.0 million compared to $66.4 million in the prior March quarter, while distribution revenue was $15.4 million compared to $18.3 million in the comparable year-earlier quarter. Revenue for the period was driven by the highly anticipated release of Unreal Tournament  This article needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. 2004 (PC), which sold approximately 400,000 units in the U.S. from its mid-March launch through the end of the quarter, and supported by titles including Dragon Ball Z “DBZ” redirects here. For the meteorological term, see dBZ (meteorology). Dragon Ball Z (ドラゴンボールZ : Budokai 2 (PS2), Trivial Pursuit Trivial Pursuit is a board game where progress is determined by a player's ability to answer general knowledge, and popular culture questions. The game was made in 1979 by Scott Abbott, a sports editor for the Canadian Press, and Chris Haney, of Welland, Ontario, a photo : Unhinged (PS2 and Xbox) and Unreal II: The Awakening (Xbox), among others. The decline in net revenue was largely attributable to the Company's decision to release a lighter slate of new titles in the fiscal fourth quarter, the new June release date for DRIV3R, and its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy to reduce its lower margin third-party distribution arrangements. Net loss for the quarter was $17.3 million, or $0.14 per share, compared to a net loss of $12.7 million, or $0.18 per share, in the year-earlier period. Net revenue for the year-ended March 31, 2004, was $468.9 million versus $534.2 million in the comparable year-earlier period. Publishing net revenue was $405.9 million versus $438.1 million in the prior year, while distribution revenue was $63.0 million versus $96.1 million in the comparable year-earlier period. Net income for the year-end was $766,000, or $0.01 per share, prior to a one-time non-cash dividend relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's September recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and public offering. Including the $39.4 million dividend, loss attributable to common shareholders for the fiscal year was $38.6 million, or $0.40 per share, compared to income attributable to common shareholders of $17.4 million, or $0.25 per share, in the year-earlier period. "Fiscal 2004 was a year of evolution for our Company," stated Bruno Bonnell Bruno Bonnell is one of the founders of Infogrames Entertainment SA. A qualified chemical engineer, Bonnell received a degree in economics at the Université Paris IX. He began his long career on the Thomson TO7, one of the earliest French-produced home computers, before founding , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Atari. "We adopted the Atari name; launched Enter The Matrix, our most successful title to date; completed a $200 million recapitalization and stock offering; and continued to streamline our overall business, all with the ultimate goal of creating greater shareholder value. Each of these steps has a positive impact on our ability to reach the mass market audience with compelling, high-quality interactive entertainment, which will continue to be one of our main objectives in the months ahead." Atari's product lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. for fiscal 2005 is expected to include the following key releases, among many others: -- For the First Quarter ending June 30, 2004: Transformers (PS2), Duel Masters Duel Masters (デュエルマスターズ Dyueru Masutāzu) is a franchise based on a manga, anime and a trading card game. : Sempai Legends (GBA GBA Game Boy Advance (Nintendo 32-Bit Game Boy) GBA Gran Buenos Aires (Argentina) GBA God Bless America GBA Gundam Battle Assault (video game) GBA Alderney ), DRIV3R (PS2 and Xbox), and Shadow Ops: Red Mercury
The Red Mercury is the rarest of Austrian newspaper stamps (postage stamps issued for the mailing of newspapers). (Xbox). -- For the Second Quarter ending September 30, 2004: Dragon Ball Z: Supersonic su·per·son·ic adj. 1. Having, caused by, or relating to a speed greater than the speed of sound in a given medium, especially air. 2. Of or relating to sound waves beyond human audibility. Warriors
Terminator (1) A character that ends a string of alphanumeric characters. (2) A hardware component that is connected to the last peripheral device in a series or the last node in a network. 3: The Redemption (PS2, Xbox, and GameCube), Asterix (PS2), Forgotten Realms The Forgotten Realms is a campaign setting for the Dungeons & Dragons (D&D) fantasy role-playing game, created by Canadian author and game designer Ed Greenwood. : Demon demon, supernatural being, generally malevolent in character. In general, the more civilized pagan societies came to consider demons as powerful, supernatural beings who lacked the dignity of gods and who, depending on the circumstance, might be either benevolent or Stone (PS2), Test Drive: Eve of Destruction (PS2), Zoids: Legacy (GBA), Zoids: Battle Legends (GameCube), Deer Hunter 2005 (PC), and Backyard Skater (PC). -- For the Third Quarter ending December 31, 2004: Backyard Basketball (GBA), Dragon Ball Z: Buu's Fury (GBA), DRIV3R (PC), Godzilla: Save The Earth (PS2 and Xbox), Shadow Ops: Red Mercury (PC), Forgotten Realms: Demon Stone (Xbox), Dragon Ball Z: Budokai 3 (PS2), Sid (1) (Society for Information Display, Santa Ana, CA, www.sid.org) A membership organization founded in 1962 devoted to the information display industry. With chapters around the world, SID hosts conferences in the U.S. and abroad and publishes a monthly magazine. Meier's Pirates This is a list of known pirates, buccaneers, corsairs, privateers, and others involved in piracy. This list includes both captains and prominent crew members. See also: pirates, wokou, buccaneers, corsairs, and privateers Ancient World -- For the Fourth Quarter ending March 31, 2005: Revenue will be driven by releases from both the lucrative Dragon Ball Z and Dungeons Dungeons may refer to:
Mr. Bonnell continued, "We believe that increased market share will be the key to our financial growth as the industry transitions to the next generation of consoles. Interactive entertainment is currently the fastest growing segment in the entertainment industry in large part because it now attracts the mass consumer audience in addition to core gamers. Atari's strategy has always been about reaching mass market consumers, and their growing interest in gaming combined with our slate of challenging yet accessible games makes for a powerful combination." For the 2005 fiscal first quarter ending June 30, 2004, Atari anticipates net revenue of approximately $110 million. The Company expects to report net income and earnings per share in the range of $8.5 million to $10.0 million, or $0.07 to $0.08 per share. For the fiscal year ending March 31, 2005, Atari anticipates full-year net revenue of approximately $470 million. The Company expects to report net income and earnings per share in the range of $25 million to $30 million, or $0.20 to $0.25 per share. Atari will host a teleconference with a simultaneous webcast at 4:45 p.m. Eastern Time today to discuss the Company's year-end results. To access the teleconference, please dial 1-800-901-5213 (domestic) or 1-617-786-2962 (international), access code 75452156, or listen to it live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by accessing the Company's Web site (www.atari.com). About Atari New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining games such as Driver(TM), Enter the Matrix(TM), Neverwinter Nights This article is about the 2002 computer role-playing game. For the AOL MMORPG, see Neverwinter Nights (AOL game). Neverwinter Nights (NWN), produced by BioWare and published by Infogrames (now Atari), is a third-person perspective computer role-playing (TM), Stuntman stunt·man n. A man who substitutes for a performer in scenes requiring physical daring or involving physical risk. stuntman n → especialista m stuntman (TM), Test Drive(R), Unreal(R) Tournament 2003, and Unreal(R) Championship; and mass-market and children's games such as Backyard Sports(TM), Nickelodeon's Blue's Clues Blue's Clues is a children's show about a dog named Blue. It features live action one on one on paper-cutout animation. The series follows a dog named Blue through her everyday life, providing small children with fun and education. The show airs on both Nick Jr. and Noggin. (TM) and Dora the Explorer Dora the Explorer is an animated television series that is carried on the Nickelodeon cable television network. A pilot episode for the series aired in 1999, and Dora the Explorer became a regular series in 2000. (TM), Civilization civilization, culture with a relatively high degree of elaboration and technical development. The term civilization also designates that complex of cultural elements that first appeared in human history between 8,000 and 6,000 years ago. (R), Dragon Ball Z(R) and RollerCoaster Tycoon(R). Atari, Inc. is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of France-based Infogrames Entertainment SA (Euronext 5257), the largest interactive games publisher in Europe. For more information, visit www.atari.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target or Toys "R" Us Toys "R" Us (currently typeset as ToYsЯuS in the logo) is a toy store chain based in the United States, Canada, Australia,The Netherlands, South Africa, Hong Kong and the United Kingdom. ; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; delays in product development and related product release schedules; maintaining relationships with leading independent video game software developers; adapting to the rapidly changing industry technology, including new console technology; maintaining or acquiring licenses to intellectual property; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings, including our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended March 31, 2003, our quarterly reports on Form 10-Q Form 10-Q See 10-Q. , and our Registration Statement on Form S-2 (as filed with the SEC on September 18, 2003, Registration No. 333-107819). The Company undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in the Company's expectations.
ATARI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three For the Twelve
Months Months
Ended March 31, Ended March 31,
------------------- -------------------
2003 2004 2003 2004
--------- --------- --------- ---------
Net revenues $ 84,683 $ 66,404 $534,248 $468,944
Cost of goods sold 45,820 46,269 263,883 248,981
--------- --------- --------- ---------
Gross profit 38,863 20,135 270,365 219,963
Selling and distribution
expenses 12,648 13,761 93,771 85,031
General and administrative
expenses 10,279 8,152 41,184 33,310
In-process research and
development - - 7,400 -
Research and development 23,736 15,610 84,197 88,343
Gain on sale of development
project to a related party - - - (3,744)
Depreciation and amortization 1,927 2,398 7,777 9,155
--------- --------- --------- ---------
Operating (loss) income (9,727) (19,786) 36,036 7,868
Interest expense, net 2,990 443 13,667 7,658
Other expense (83) (66) (2,926) (2,363)
--------- --------- --------- ---------
(Loss) income before
(benefit from) provision
for income taxes (12,800) (20,295) 19,443 (2,153)
(Benefit from) provision for
income taxes (85) (2,982) 2,083 (2,919)
--------- --------- --------- ---------
Net (loss) income $(12,715) $(17,313) $ 17,360 $ 766
Dividend paid to parent - - - (39,351)
--------- --------- --------- ---------
(Loss) income attributable to
common stockholders $(12,715) $(17,313) $ 17,360 $(38,585)
========= ========= ========= =========
Basic (loss) income
attributable to common
stockholders per share $(0.18) $(0.14) $0.25 $(0.40)
========= ========= ========= =========
Diluted (loss) income
attributable to common
stockholders per share $(0.18) $(0.14) $0.25 $(0.40)
========= ========= ========= =========
Basic weighted average shares
outstanding 69,918 121,214 69,864 96,990
========= ========= ========= =========
Diluted weighted average
shares outstanding 69,918 121,214 70,058 96,990
========= ========= ========= =========
ATARI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, March 31,
2003 2004
--------- ---------
ASSETS
Current assets:
Cash $ 815 $ 9,621
Receivables, net 47,053 37,707
Inventories, net 37,827 27,520
Income taxes receivable 395 2,320
Due from related parties 2,656 4,175
Prepaid expenses and other current assets 16,958 12,465
Related party notes receivables -- 8,571
--------- ---------
Total current assets 105,704 102,379
Advances to related parties 32,184 --
Property and equipment, net 14,727 13,267
Goodwill, net of accumulated amortization of
$26,116 in both periods 70,224 70,224
Other intangible assets, net of accumulated
amortization of $619 and $1,294, at
March 31, 2003 and March 31, 2004, respectively 2,081 1,406
Other assets 7,162 6,680
--------- ---------
Total assets $232,082 $193,956
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $ 39,587 $ 37,837
Accrued liabilities 31,872 15,886
Revolving credit facility 10,651 --
Current portion of related party medium-term loan 40,000 --
Related party credit facility 44,800 --
Royalties payable 13,653 14,481
Income taxes payable 1,965 450
Short-term deferred income 2,077 2,107
Due to related parties 12,747 6,704
--------- ---------
Total current liabilities 197,352 77,465
Related party debt 124,610 --
Deferred income 4,131 555
Other long-term liabilities 2,907 873
--------- ---------
Total liabilities 329,000 78,893
--------- ---------
Commitments and contingencies
Stockholders' equity (deficiency):
Preferred stock, $0.01 par value, 5,000 shares
authorized, none issued or outstanding -- --
Common stock, $0.01 par value, 300,000 shares
authorized, 69,920 and 121,231 shares issued
and outstanding at March 31, 2003
and March 31, 2004, respectively 699 1,212
Additional paid-in capital 486,053 735,964
Accumulated deficit (586,851) (625,436)
Accumulated other comprehensive income 3,181 3,323
--------- ---------
Total stockholders' (deficiency) equity (96,918) 115,063
--------- ---------
Total liabilities and stockholders'
(deficiency) equity $232,082 $193,956
========= =========
Supplemental Table
Three Months Ended Year Ended
March 31, March 31,
------------------- ---------------------
2003 2004 2003 2004
-------- --------- ---------- ---------
Publishing Revenue Mix
PC 45% 43% 40% 30%
Playstation2 26% 28% 30% 35%
Playstation 8% 1% 4% 3%
Xbox 9% 15% 10% 14%
Game Boy 9% 8% 12% 11%
Game Cube 3% 5% 4% 7%
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