Atari adjusts earnings; reports wider losses

Atari Inc. yesterday said it was rereporting its fourth quarter and full-year earnings and had filed adjusted documents with the SEC.

Atari had previously announced unaudited financial results for the fourth quarter and full year that ended March 31, 2006, and reported a net loss of $4.3 million for the quarter. Yesterday, the red ink took on a deeper shade.

"As a result of final audit adjustments related to the amortization of a certain license, the audited financial statements contained in the Form 10-K filed today, June 29, 2006, reflect a net loss for the fiscal 2006 fourth quarter of $6.2 million, or $0.05 per share, and a net loss for the fiscal 2006 year end of $69.0 million, or $0.54 per share."

Previously, the company had reported a quarterly loss of $4.3 million, and a full-year loss of $67.1 million.

In this week's statement, the company reiterated that it had taken "several definitive steps to improve its financial position as well as focus its strategy," including the raising of $13 million through the divestiture of certain noncore assets, specifically the TimeShift and Stuntman licenses, as well as reductions to staff implemented earlier in the year.

Emphasizing a strategy earlier outlined by CEO Bruno Bonnell, the statement yesterday said the company would focus on its established franchises as well as a new approach to online gaming, or what it calls "the creation and aggregation of a new online gaming movement focused on community building."

The statement said Atari will continue to develop and publish games for traditional game consoles but will also "look to differentiate its titles by capitalizing on the connectivity and power of next-generation consoles."