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ATARI CORP. ANNOUNCES THIRD QUARTER RESULTS

 SUNNYVALE, Calif., Dec. 8 /PRNewswire/ -- Atari Corp. (AMEX: ATC) today reported its operating results for the third quarter ended Sept. 30, 1993. Net sales were $4.4 million, as compared to $34.5 million for the same quarter in 1992, a decrease of 87 percent. Atari incurred a net loss of $17.6 million (31 cents per share) for the quarter ended Sept. 30, 1993, compared to net income of $1.9 million (3 cents per share) for the comparable period in 1992. For the second quarter ended June 30, 1993, the company reported net sales of $5.7 million and a net loss of $6.6 million (12 cents per share).
 The company indicated that the net loss was substantially larger than expected, primarily due to write-offs of approximately $7.5 million related to finished goods inventory of personal computers and the company's older video game products. In addition, the company incurred restructuring costs of approximately $6.4 million associated with the wind-down of the company's Australian operations and the decline in value of certain company-owned real estate in Europe.
 Commenting on the results, Sam Tramiel, president of Atari, said, "The company is in the process of completing its transition from an historical focus on older technology consisting principally of 16-bit personal computers and 8-bit video game systems. During 1993, the company has focused primarily on the development and marketing launch of Jaguar, its 64-bit interactive multimedia video entertainment system. While we are highly encouraged by the early sales of Jaguar, we do not expect to achieve profitability until at least such time as shipments of Jaguar are made in substantial volume. We are currently working to resolve certain start-up production and supply problems which led to delays in production and shipment of Jaguar. We commenced initial shipments of Jaguar during the week of Nov. 15, and currently estimate that we will ship approximately 20,000 Jaguar systems during the quarter ending Dec. 31, 1993. We continue to believe that we will ship approximately 500,000 Jaguar systems during 1994, subject to market acceptance of the product, availability of key components and the transition to volume production. In addition, the company currently has approximately $34 million in cash as compared to $35 million as of June 30, 1993."
 Atari Corp. designs and markets interactive multimedia video entertainment systems and personal computers. Atari's headquarters are located at 1196 Borregas Ave., Sunnyvale, CA 94089.
 ATARI CORP.
 Condensed Consolidated Statements of Operations
 (in thousands, except per share amounts)
 Quarter Ended 9 Months Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net Sales $ 4,411 $ 34,529 $ 20,280 $101,873
 Operating Income
 (loss) (18,610) 187 (25,638) (52,676)
 Exchange Gain (loss) 816 1,600 (1,526) (263)
 Other Income
 (Expense) Net 202 148 566 (88)
 Interest (Expense) Net
 of Interest Income (41) (44) 39 1,093
 Income (loss) from
 Before Income Taxes (17,633) 1,891 (26,558) (51,934)
 Income Taxes (credits) 0 9 (264) (220)
 Net Income (loss) $(17,633) $1,882 $(26,294) $(51,714)
 Earnings per Common
 and Equivalent Share:
 Net Income (loss) $(0.31) $0.03 $(0.46) $(1.00)
 Number of shares used
 in computation 57,140 57,288 57,138 57,375
 -0- 12/8/93
 /CONTACT: August J. Liguori of Atari, 408-745-2069/
 (ATC)


CO: Atari Corp. ST: California IN: CPR SU: ERN

LW-TM -- SJ006 -- 2002 12/08/93 21:39 EST
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Publication:PR Newswire
Date:Dec 8, 1993
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