Atari Reports Fiscal 2004 Second Quarter Results in Line with Analysts Consensus Estimates.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 3, 2003 Atari Atari Computer was a video game manufacturer founded in 1972 in Sunnyvale, CA, by Nolan Bushnell, who named the company after a word used in the Japanese game of Go. Atari became famous for "Pong," a video game that simulated Ping-Pong on TV. , Inc. (Nasdaq: ATAR) -- Reports Strongest Balance Sheet in Recent Company History -- -- Reaffirms Fiscal 2004 Guidance -- Atari, Inc. (Nasdaq: ATAR), a leading global publisher and developer of interactive entertainment, today announced results for the fiscal 2004 second quarter and the six months ended September September: see month. 30, 2003. Net revenue for the second quarter ended September 30, 2003, was $60.6 million compared to $109.4 million in the comparable year-earlier period. Publishing net revenue was $45.0 million compared to $83.7 million in the prior September quarter, while distribution revenue was $15.6 million compared to $25.7 million in the comparable year-earlier quarter. Revenue for the quarter was supported by the continued success of proven franchises such as Dungeons Dungeons may refer to:
Dragon Ball Z (ドラゴンボールZ , Test Drive, Backyard Sports and Enter The Matrix. However, to maximize consumer acceptance and the individual sales for its new releases, the Company introduced fewer titles during the September quarter, historically a soft quarter for the industry, resulting in lower year-over-year results. Despite fewer releases, Atari maintained its calendar year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. position as the #2 overall independent video game publisher, up from #6 in 2002, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the most recent NPD NPD New Product Development NPD Nouveau Parti Démocratique (Canada) NPD Narcissistic Personality Disorder NPD Norwegian Petroleum Directorate NPD Nationaldemokratische Partei Deutschlands Funworld(R) data. Net loss for the quarter was $28.7 million, 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 recent 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, net loss for the quarter was $68.1 million, or $0.90 per share, compared to net income of $731,000, or $0.01 per share, in the year-earlier period. Excluding the dividend, net loss per share for the quarter was $0.38. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Net revenue for the six-month period ended September 30, 2003, was $211.9 million versus $239.0 million in the comparable year-earlier period. Publishing net revenue was $180.6 million versus $191.9 million in the prior six-month period, while distribution revenue was $31.3 million versus $47.1 million in the comparable year-earlier period. Net loss for the six-month period was $4.9 million, prior to a one-time non-cash dividend relating to the Company's recent recapitalization and public offering. Including the $39.4 million dividend, net loss for the six-month period was $44.3 million, or $0.61 per share, compared to net income of $22,000, or $0.00 per share, in the year-earlier period. Excluding the dividend, net loss per share for the six months was $0.07. EBITDA was $6.2 million compared to $16.1 million in the six-month period ended September 30, 2002. "Atari finished the quarter a much stronger company, having successfully completed a $131 million stock offering, which was part of a $200 million recapitalization that eliminated all of our long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , significantly improved our cash position and returned the Company to a positive working capital, resulting in stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of more than $108 million," said 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 maintained our ranking as the #2 independent publisher year to date, while increasing our market share by more than 55% year-over-year," Mr. Bonnell continued. "Driving that growth were titles such as Enter The Matrix, one of our most valuable licenses and on which we've begun working on a follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan game; new titles from our Dungeons & Dragons series, including D&D Heroes and Temple of Elemental Evil Elemental Evil is the second release by the metal band "Hinge" (now called Dry Kill Logic). The following 9 track EP was released in 1999 through their own label, Psychodrama Records. ; and titles from our Dragon Ball Z series, among others. "Looking ahead to the holiday season, we have an extremely strong and diverse slate of games, with titles from established franchises such as Dragon Ball Z, Backyard Sports, 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 , Magic the Gathering, 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. , as well as new key products such as Kya, 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: Rise of the Machines, and Mission Impossible: Operation Surma Surma (sûr`mə, s  r`mä), river, 320 mi (515 km) long, rising in the Manipur hills, NE India, and flowing generally W through the Surma valley, where the river is dispersed into , to name a few. We anticipate a solid holiday season
giving us great momentum as we roll into our fiscal fourth quarter which
will include highly anticipated releases such as Driver 3 and Unreal
Tournament  This article needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. 2004." For the fiscal 2004 third quarter ended December 31, 2003, Atari anticipates quarterly net revenue between $215 million and $235 million. The Company expects to report net income between $28 million and $36 million, or between $0.23 and $0.30 per share. The Company also reaffirmed its fiscal 2004 net revenue guidance of $560 million to $590 million and net income of $35 million to $45 million, or $0.36 to $0.46 per share, prior to a one-time non-cash dividend relating to the Company's recent recapitalization and public offering. Atari will host a teleconference with a simultaneous webcast at 4:45 p.m. Eastern Time today to discuss the Company's second quarter results. To access the teleconference, please dial 1-800-901-5217 (domestic) or 1-617-786-2964 (international), access code 88464712, 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(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(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 Certain statements contained in this release are 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. (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks the protection afforded by 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 and other enabling legislation Noun 1. enabling legislation - legislation that gives appropriate officials the authority to implement or enforce the law legislation, statute law - law enacted by a legislative body . Statements contained herein with regard to the company's business outlook and prospective operating and financial results are based upon management's expectations regarding various factors, which may be beyond the company's control. This statement is not intended to identify each and every risk and uncertainty inherent in the company's business, and should be read in conjunction with the company's cautionary statements contained in its most recent filings with U.S. and foreign regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities .
ATARI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Three Months For the Six Months
Ended September 30, Ended September 30,
--------------------- ---------------------
2002 2003 2002 2003
---------- ---------- ---------- ----------
Net revenues $ 109,367 $ 60,575 $ 238,970 $211,933
Cost of goods sold 53,895 37,950 113,920 108,796
---------- ---------- ---------- ----------
Gross profit 55,472 22,625 125,050 103,137
Selling and distribution
expenses 19,599 13,804 41,364 33,932
General and administrative
expenses 8,217 8,685 16,714 17,232
In-process research and
development - - 7,400 -
Research and development 22,085 23,576 43,485 45,805
Depreciation and
amortization 2,075 1,996 3,994 3,946
---------- ---------- ---------- ----------
Operating income (loss) 3,496 (25,436) 12,093 2,222
Interest expense, net 3,252 3,716 7,322 6,762
Other income (expense) 494 (534) (3,064) (417)
---------- ---------- ---------- ----------
Income (loss) before
provision for (benefit from)
income taxes 738 (29,686) 1,707 (4,957)
Provision for (benefit
from) income taxes 7 (955) 1,685 (18)
---------- ---------- ---------- ----------
Net income (loss) $ 731 $ (28,731) $ 22 $ (4,939)
Dividend to parent - (39,351) - (39,351)
---------- ---------- ---------- ----------
Net income (loss)
attributable to common
stockholders $ 731 $ (68,082) $ 22 $(44,290)
========== ========== ========== ==========
Basic and diluted net
income (loss) attributable
to common stockholders per
share $ 0.01 $ (0.90) $ 0.00 $ (0.61)
========== ========== ========== ==========
Basic weighted average
shares outstanding 69,826 75,594 69,826 72,800
========== ========== ========== ==========
Diluted weighted average
shares outstanding 69,952 75,594 69,961 72,800
========== ========== ========== ==========
EBITDA * $ 5,571 $ (23,440) $ 16,087 $ 6,168
========== ========== ========== ==========
* EBITDA is defined as operating earnings before interest, taxes,
depreciation and amortization
ATARI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, September 30,
2003 2003
---------------------------
ASSETS
Current assets:
Cash $ 815 $ 27,019
Receivables, net 47,053 31,145
Inventories, net 37,827 35,366
Income taxes receivable 395 409
Due from related parties 2,656 2,184
Prepaid expenses and other current assets 16,958 18,328
------------ ------------
Total current assets 105,704 114,451
Advances to related parties 32,184 --
Property and equipment, net 14,727 14,347
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 $956,
at March 31, 2003 and September 30,
2003, respectively 2,081 1,744
Other assets 7,162 12,275
------------ ------------
Total assets $ 232,082 $ 213,041
============ ============
LIABILITIES AND STOCKHOLDERS' (DEFICIENCY)
EQUITY
Current liabilities:
Accounts payable $ 39,587 $ 39,174
Accrued liabilities 31,872 32,637
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 13,270
Income taxes payable 1,965 1,348
Short-term deferred income 2,077 2,077
Due to related parties 12,747 9,538
------------ ------------
Total current liabilities 197,352 98,044
Related party debt 124,610 --
Deferred income 4,131 4,093
Other long-term liabilities 2,907 2,749
------------ ------------
Total liabilities 329,000 104,886
------------ ------------
Commitments and contingencies -- --
Stockholders' (deficiency) equity:
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
120,933 shares issued and
outstanding at March 31, 2003 and
September 30, 2003, respectively 699 1,209
Additional paid-in capital 486,053 734,814
Accumulated deficit (586,851) (631,141)
Accumulated other comprehensive income 3,181 3,273
------------ ------------
Total stockholders' (deficiency)
equity (96,918) 108,155
------------ ------------
Total liabilities and stockholders'
(deficiency) equity $ 232,082 $ 213,041
============ ============
Supplemental Table
Three Months
Ended Six Months Ended
September 30, September 30,
----------------- -----------------
2002 2003 2002 2003
-------- -------- -------- --------
Platform Revenue Mix
PC 52% 53% 46% 37%
Playstation2 20% 15% 30% 28%
Playstation 4% 5% 3% 4%
Xbox 11% 10% 8% 16%
Game Boy 12% 10% 13% 7%
Game Cube 1% 7% 0% 8%
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