Lyons – France, February 15, 2010 – Atari, S.A. announces stable consolidated 9-month revenues for fiscal year 2009/2010 (ended December 31, 2009) at €92.5 million (a -1.2% decline year-on-year), despite the challenging economic environment. US operation revenues grew by 22.0% but this solid performance was offset by the lower revenue in Europe.
Jeff Lapin, CEO of Atari, stated: “9-month revenues were stable versus last year with a higher share of high margin sales. Also, with the additional cash raised recently, the Company has now strengthened its equity and is in a position to work on an expanded publishing plan. In early February, Atari launched Star Trek Online, supported by a strong marketing plan. This is a promising MMO game, and I am very enthusiastic about the launch“.
In addition Atari announced today that Phil Veneziano is appointed Chief Financial Officer of the Atari Group. He will be based in the US. M. Veneziano joined the Group in August 2009 as CFO of Atari Inc., bringing a strong corporate finance experience in the online and entertainment industry. M. Veneziano previously held the position of VP of Finance at online career services management company TheLadders.com Inc. and prior to that he held numerous financial management positions at international media firm News Corporation.
Phil Veneziano will succeed to Fabrice Hamaide who is leaving his functions in light of the shift of business operations to the US and the completion of the restructuring. Mr. Hamaide has played a key role in the Company’s transformation, the improvement of the cost structure, the acquisition of Cryptic Studios, the sale of distribution operations in Europe and Asia, and the recently completed capital increase. The Board expressed its thanks to Fabrice Hamaide for his valuable contribution to Atari.
9-MONTH REVENUE ANALYSIS
Atari published stable consolidated 9-month revenues for fiscal year 2009/2010 (ended December 31, 2009) at €92.5 million (a -1.2% decline year-on-year).
For the first nine month of fiscal year 2009/2010, US operations represented 85.1% of the consolidated revenues, increasing by 22.0% to €78.7 million (+18.8% at constant exchange rate). This increase was mainly driven by:
· sales of Atari’s major releases over the period (Ghostbusters: The Video Game, The Chronicles of Riddick: Assault on Dark Athena, Backyard Football and Champions Online),
· the growth of higher margin licensing and online revenues (representing approximately 9% of revenues when compared to approximately 4% for the same period last year), and
· higher third-party distribution revenue resulting from the local distribution deals which started in the third quarter of 2008/2009, and which represented approximately 37% of US operations revenues (vs. approximately 26% for the same period last year).
European operations and other, representing 14.9% of consolidated revenues, declined by 52.5% to €13.8 million over the period due to lower sales and fewer releases.
Third quarter revenues for fiscal year 2009/2010 declined by 38.7% to €24.0 million, vs. €39.1 million for the third quarter of fiscal year 2008/2009. This decline was mainly due to a lower number, but more profitable games released during the 2009 holiday season as compared to the same period last year.
OUTLOOK FOR 2009/2010
The Company expects Current Operating Income to be slightly negative in the second half of this fiscal year, excluding non-recurring items, which is in the range of the previously announced guidance.
The Company is working on expanding its publishing plan through the leveraging of its IP portfolio.
Below is an indicative expected and already announced releases timeline for later this fiscal year and early next year:
· Star Trek Online for PC was released on February 2, 2010 in the United States and on February 5, 2010 in Europe,
· Project Runway for Wii and PC is to be released in the Spring of 2010,
· Backyard Baseball for Xbox 360, Wii and DS is to be released in Spring 2010,
Also, Atari intends to celebrate in February 2010 the 30th anniversary of legendary IP Missile Command through its Atari.com platform. More games will come to Atari.com throughout the year.
Atari indicative financial calendar:
– Full year 2009/2010 earnings announcement: May 28, 2010
Forward looking statements:
This press release contains forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Atari. Although Atari believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Atari’s control, and notably some risks described in the 2008/2009 Document de référence of the Group filed by Atari S.A. with the Autorité des marchés financiers (AMF – French securities regulator) under number D.09-0600 and in the Supplement to the Document de reference of the group filed with the AMF by Atari S.A. on December 10, 2009 and which are also available in English on Atari’s corporate web site (http://corporate.atari.com). The present forward-looking statements are made as of the date of the present press release and Atari disclaims any intention or obligation to provide, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Atari SA
Atari group is a global creator, producer and publisher of interactive entertainment for interactive game platforms that include PC, online, consoles from Microsoft, Nintendo and Sony and advanced smart phones (i.e. iphone). Divisions of Atari, S.A. include Cryptic Studios, Atari London Studio, Eden Studios, Atari Interactive, Inc. and Atari, Inc.
Atari benefits from its global brand and an extensive catalogue of popular games based on classic owned game franchises (Asteroids, Centipede, Missile Command, Lunar Lander), original owned franchises (Test Drive, Backyard Sports, Deer Hunter), MMO games from Cryptic Studios (Star Trek Online, Champions Online) and third party franchises (Ghostbusters, Project Runway, Dungeons and Dragons). For more information please visit http://corporate.atari.com
© 2009 Atari Europe SASU. All rights reserved.
Atari word mark and logo are trademarks owned by Atari Interactive, Inc.
For more information, please contact:
General Secretary, Atari
Tel + 33 (0) 4 26 68 93 59
Marie Ein – Alexis Breton
Tel + 33 (0) 1 53 65 68 68
Revenue breakdown (1) by segment:
Breakdown of revenue by platform: