Atari's Future Uncertain
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Following its move to exit development and the departure of its former CEO, publisher Atari has announced its second quarter results, showing sales down to $13.3 million, and net losses of $7.7 million, significantly higher than the prior year's $68,000.
Sales were down from $28.6 million in 2006. Revenue from publishing was also down from $23.1 million to $11.4 million, and its distribution revenue fell from $5.5 million to $1.9 million.
For its half year, Atari saw sales fall from $48.1 million in 2006 to $23.7 million, and net losses mounting from $7.4 million last year to $19.6 million.
In Atari's quarterly report filing with the SEC, the company openly raises doubts about its ability to continue functioning, even with the sale of its development rights to Infogrames.
"Historically, we have relied on IESA [Infogrames] to provide limited financial support to us, through loans or, in recent years, through purchases of assets," the filing reads. "However, IESA has its own financial needs, and its ability to fund its subsidiaries' operations, including ours, is limited. Therefore, there can be no assurance we will ultimately receive any funding from IESA."
"The uncertainty caused by these above conditions raises substantial doubt about our ability to continue as a going concern," it continues.
