Atari Reports Fiscal 2005 First Quarter Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Atari, Inc. (Nasdaq: ATAR), a leader in interactive entertainment, today announced financial results for the fiscal 2005 first quarter ended June 30, 2004. Net revenue for the first quarter ended June 30, 2004, was $110.3 million compared to $151.4 million in the comparable year-earlier period. Publishing net revenue was $99.7 million compared to $135.6 million in the prior June quarter, while distribution revenue was $10.6 million compared to $15.8 million in the comparable year-earlier quarter. Revenue for the period was driven by the highly anticipated release of DRIV3R (PS2 and Xbox), which sold-through approximately 50% of the units shipped to retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → worldwide in its first month on shelves and ranked as the #2 PS2 title and #5 Xbox title in the U.S. in June, while topping the charts in Australia, France, Germany, Italy, Spain, Sweden and the U.K. Additionally, sales were supported by Transformers (PS2), Shadow Ops: Red Mercury
The Red Mercury is the rarest of Austrian newspaper stamps (postage stamps issued for the mailing of newspapers). (Xbox), 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 ) and DBZ DBZ Dragonball Z (anime) DBZ Division By Zero (error type) DBZ Dead Ball Zone (video game) dBZ Decibels of Z (radar echo intensity/reflectivity) : Super Sonic Warriors
Net income for the quarter was $12.1 million, or $0.10 per share, compared to net income of $23.8 million, or $0.34 per share, in the year-earlier period. "The fiscal 2005 first quarter was highlighted by the strong global launch of DRIV3R, which has been embraced enthusiastically by consumers worldwide," 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. "DRIV DRIV Drive (street type) 3R's performance in just nine days of the quarter, combined with that of Transformers and Shadow Ops: Red Mercury, among others, enabled us to surpass our own expectations for profitability, thereby creating greater shareholder value. We are pleased to have delivered on our previously stated goals for the quarter and will continue to strive toward meeting the high expectations of our customers and shareholders." 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 the remainder of fiscal 2005 is expected to include the following key releases, among many others: --For the second quarter ending September 30, 2004: Backyard Skater (PC), Deer Hunter 2005 (PC), 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), Shadow Ops: Red Mercury (PC), Asterix & Obelix (PS2), 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), Test Drive: Eve of Destruction (PS2 and Xbox), Unreal Tournament  This article needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. Editor's Choice (PC), YuYu Hakusho: Dark Tournament (PS2), Zoids: Legacy (GBA), and Zoids: Battle Legends (GameCube). --For the third quarter ending December 31, 2004: Axis & Allies (PC), Backyard Basketball (GBA), 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 3 (PS2), Dragon Ball Z: Buu's Fury (GBA), Duel Masters Cobalt (PS2), Duel Masters 2: Kaijudo Showdown (GBA), Forgotten Realms: Demon Stone (Xbox and PC), Godzilla: Save The Earth (PS2 and Xbox), RollerCoaster Tycoon 3 (PC), Sid 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, "The remainder of our fiscal 2005 release slate is characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. as a balanced mix of established franchises and new IP, with many titles for the growing mass consumer audience. This audience is the key to increasing market share and will be a defining factor for Atari's growth and overall success." For the 2005 fiscal second quarter ending September 30, 2004, Atari anticipates a 25% increase in net revenue to approximately $75 million compared to $60.6 million in the comparable year-earlier period. The Company expects to report net loss of approximately $19 million, or $0.16 per share. For the fiscal year ending March 31, 2005, Atari reiterates full-year net revenue of approximately $470 million and 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 first quarter results. To access the teleconference, please dial 1-800-901-5259 (domestic) or 1-617-786-4514 (international), access code 61758119, or listen to it live via the Internet 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 DRIV3R(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 2004, 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(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, 2004 and our quarterly reports on Form 10-Q Form 10-Q See 10-Q. . 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. (Tables to Follow)
ATARI, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three Months
Ended June 30,
-------------------------
2003 2004
------------ ------------
(unaudited) (unaudited)
Net revenues $ 151,357 $ 110,296
Cost of goods sold 70,846 51,868
------------ ------------
Gross profit 80,511 58,428
Selling and distribution expenses 20,127 17,652
General and administrative expenses 8,548 8,058
Research and development 22,229 17,132
Depreciation and amortization 1,950 2,766
------------ ------------
Operating income 27,657 12,820
Interest expense, net 3,046 174
Other income 118 19
------------ ------------
Income before provision for income taxes 24,729 12,665
Provision for income taxes 937 609
------------ ------------
Net income $ 23,792 $ 12,056
============ ============
Basic net income per share $ 0.34 $ 0.10
============ ============
Diluted net income per share $ 0.32 $ 0.10
============ ============
Basic weighted average shares outstanding 69,974 121,249
============ ============
Diluted weighted average shares outstanding 80,499 121,334
============ ============
ATARI, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, June 30,
2004 2004
--------- -----------
(unaudited)
ASSETS
Current assets:
Cash $ 9,621 $ 1,256
Receivables, net 37,707 67,710
Inventories, net 27,520 24,539
Income taxes receivable 2,320 1,745
Due from related parties 4,175 19,048
Prepaid expenses and other current assets 12,465 10,995
Related party notes receivables 8,571 8,571
--------- -----------
Total current assets 102,379 133,864
Property and equipment, net 13,267 11,851
Goodwill, net of accumulated amortization of
$26,116 in both periods 70,224 70,224
Other intangible assets, net of accumulated
amortization of $1,294 and $1,462, at
March 31, 2004 and June 30, 2004, respectively 1,406 1,238
Other assets 6,680 5,699
--------- -----------
Total assets $ 193,956 $ 222,876
========= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 37,837 $ 44,765
Accrued liabilities 15,886 18,702
Revolving credit facility -- 9,654
Royalties payable 14,481 13,272
Income taxes payable 450 881
Short-term deferred income 2,107 77
Due to related parties 6,704 7,941
--------- -----------
Total current liabilities 77,465 95,292
Deferred income 555 536
Other long-term liabilities 873 784
--------- -----------
Total liabilities 78,893 96,612
--------- -----------
Commitments and contingencies
Stockholders' 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, 121,231 and 121,275 shares issued
and outstanding at March 31, 2004 and
June 30, 2004, respectively 1,212 1,213
Additional paid-in capital 735,964 735,963
Accumulated deficit (625,436) (613,380)
Accumulated other comprehensive income 3,323 2,468
--------- -----------
Total stockholders' equity 115,063 126,264
--------- -----------
Total liabilities and stockholders'
equity $ 193,956 $ 222,876
========= ===========
Supplemental Table
Three Months Ended
June,
---------------------------------
2003 2004
-------------- -----------------
Publishing Revenue Mix
PC 22.3% 16.1%
PlayStation 2 36.6% 46.9%
PlayStation 3.8% 1.3%
Xbox 19.6% 22.4%
Game Boy 7.7% 11.5%
Game Cube 9.9% 1.8%
Other 0.1% --
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