Atari: Under the Bus
Atari is still breathing, but it may be a death rattle.They announced Q3 fiscal results today (for them, the quarter ending December 31st) and they were dismal. Revenue down 50% from last year (to 100 million), a loss of nearly 5 million, and a restructuring (translation: layoffs) charge of 1.1 million.
Atari lost 25 million in the last quarter, so I guess this could be seen as improvement, but not when they announce that they're in default on some of their financial covenants and their credit line has been cut off. Here's the red letter quote:
The Company cannot guarantee... [we] will generate sufficient resources to fully address the uncertainties of our financial position.
Oh, yeah: the CFO resigned, too.
Along with its financial results today Atari also announced that Diane Baker has resigned her position as Atari's Executive Vice President and CFO, to be effective shortly. The company's continuing woes were not cited as a reason for her leaving; she did not jump ship, but instead left "to pursue a new opportunity," the company said.
That "new opportunity," I'm guessing, was to not get fired if she left. That's what phrase usually means.
Full article here: http://biz.gamedaily.com/industry/feature/?id=11825.
We've talked about it before: 2006 is going to be a brutal year in the gaming industry.
<< Home