Atari Losses to Top 70 Million
Atari [http://www.atari.com/us/]has reported a greater-than-expected loss for the past fiscal year, according to a new regulatory filing.
The company will report a loss of $71.3 million for the year ended March 31, compared with a loss of $69 million the previous year. Revenue for the fiscal year fell 44 percent to $121.6 million. The result includes a charge of $54.1 million, for "impairment of goodwill," which last month caused Atari to delay filing its annual report in order to finalize the amount of the charge. The charges were the result of a "significant" drop in the company's market capitalization; Atari said last month that without the charge, it would post a loss of $17.2 million.
Atari has faced numerous difficulties lately. In early May it announced a 20% cut in its workforce, while parent company Driver [www.infogrames.com], and is now refocusing on budget and casual console titles.
Founded in 1972, Atari was an early videogame pioneer, but by the 1990s was languishing in irrelevance. Infogrames acquired the rights to the Atari name as part of its purchase of Hasbro Interactive [http://en.wikipedia.org/wiki/Hasbro_Interactive], and in 2003 officially reorganized its U.S. subsidiary as a separate entity, returning the Atari name to prominence in the industry.
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Atari [http://www.atari.com/us/]has reported a greater-than-expected loss for the past fiscal year, according to a new regulatory filing.
The company will report a loss of $71.3 million for the year ended March 31, compared with a loss of $69 million the previous year. Revenue for the fiscal year fell 44 percent to $121.6 million. The result includes a charge of $54.1 million, for "impairment of goodwill," which last month caused Atari to delay filing its annual report in order to finalize the amount of the charge. The charges were the result of a "significant" drop in the company's market capitalization; Atari said last month that without the charge, it would post a loss of $17.2 million.
Atari has faced numerous difficulties lately. In early May it announced a 20% cut in its workforce, while parent company Driver [www.infogrames.com], and is now refocusing on budget and casual console titles.
Founded in 1972, Atari was an early videogame pioneer, but by the 1990s was languishing in irrelevance. Infogrames acquired the rights to the Atari name as part of its purchase of Hasbro Interactive [http://en.wikipedia.org/wiki/Hasbro_Interactive], and in 2003 officially reorganized its U.S. subsidiary as a separate entity, returning the Atari name to prominence in the industry.
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