Light Revenue Knocks Atari
By Troy Wolverton
TheStreet.com Staff Reporter
6/14/2005 6:11 PM EDT
The bad news just keeps coming at Atari.
Sales at the struggling video-game software maker fell well short of expectations in its just-completed quarter. Meanwhile, the company announced that it plans to sever ties with another studio.
On a conference call, company executives sought to reassure investors, particularly after the sudden departure of company CEO Jim Caparro earlier this month.
"I remain very committed ... to carrying out the initiatives we've laid out," said Atari CFO Diane Baker. "When we stop shooting ourselves in the foot and do everything right, Atari's going to be a great company."
But that day still seemed way off on Tuesday, as the company reported its fiscal fourth-quarter results. In the quarter ended March 31, Atari lost $9.08 million, or 7 cents a share, on sales of $62.7 million. In the same period a year ago, the company lost $17.31 million, or 14 cents a share, on $64.8 million.
Excluding restructuring charges, Atari would have lost $4.2 million, or 3 cents a share, in the latest quarter.
On average, the four analysts polled by Thomson First Call were expecting the company to lose 4 cents a share on $76.4 million in sales in the quarter, excluding restructuring charges. On this basis, the company predicted in February that it would post a bottom line ranging from break-even to a $10 million, or 8-cents-a-share, loss on sales of between $70 million to $80 million.
The company did not give its outlook on its current fiscal quarter or year.
