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Atari 2010/2011 9 Month Financial Report
Dinendae
Member Posts: 1,264
Once again, for those who are interested in such things: Link
Got to this one a bit late, as I was expecting them to just do a full year report since they run so late all the time with these reports.
A couple things stand out:
It looks like Bluebay (the one who holds Atari's credit line) was unsuccessful in its attempt to dump the Atari stock it was holding (referrenced in the previous 6 month report). We should know (or at least get a hint) what this means for Atari on the full 2010-2011 (that's Apr 1, 2010 - Mar 31, 2011) report, since the credit extension was pushed from Dec 2010 to this quarter so that Bluebay could try to dump its Atari stock.
Also, for those interested in the game:
Dungeons and Dragons: Daggerdale for XBLA, PSN, PC download and retail planned release in Spring 2011
*edit*
Almost forgot, but there was one error in the report:
The nine months FY 2010/2011 includes subscription revenue from both Star Trek Online and Champions Online which were released in the second quarter of FY 2009/2010.
These two games actually released in different quarters, but the error is more than likely just a translation error (the original document being French after all).
"Oh my, how horrible, someone is criticizing a MMO. Oh yeah, that is what a forum is about, looking at both sides. You rather have to be critical of anything in this genre as of late because the track record of these major studios has just been appalling." -Ozmodan
Comments
So ..
What does this meen for the Atari share holders if the stock could not be sold? I am assuming the credit line will be pulled and its selloff time for all the assets to settle depts?
So to all the New STO lifers ... :-( Pop go's the WEZEL ! ...& thanks for the FISH!
Oh yea ... expect the C-Store to double its output .... just for those special Trekkies to spend the $$$ ...come on guys buy it all Atari has credit line to maintain!
As for the shareholders, Atari stock has been slowly but steadily declining for years now. NASDAQ delisted Atari back in 2008 after repeated warnings, and currently does not carry an Atari or an Infogrames listing. The last European stock quote listed on Atari's website shows one share at 3.13EUR (-2.19 %, or
0.07 ). However since Atari stock has been declining for so long, any shareholders who wanted to sell should have done so a long time ago. Since 2005 they have been losing tens of millions of dollars every fiscal year and so far they are continuing that trend under their new 'fewer, but more profitable games' business direction.
As for the Bluebay deal falling through, right now that is uncertain; Atari was given a slight extension for the credit line coming due (which was originally slated for December, 2010). One part of the deal Bluebay had with Atari, in exchange for the time extension, was that Atari would refrain from puting more stock on the market. Now that Bluebay's attempts to divest itself of the Atari stock seem to have come up short for the moment, then I would assume the credit line is now due (or will be shortly), although it is possible that Bluebay may offer another such extension if they can get someone else interested.
That doesn't mean that Atari has to shell out tens of millions of dollars right away though (which is something I am unsure they can actually do at this point): Atari's previous credit line was several months past due before they talked Bluebay into agreeing to extend them a credit line. It is possible that they can find someone else to extend them credit as well, and keep afloat by hoping from one credit line they will not be able to pay to another. In the end it's going to come down to how well Atari and/or Bluebay can get some other creditor to pick up the tab, otherwise Atari will be well below their projected earnings.
Quite frankly, their online game model and focus on producing 'fewer, but more profitable games' business model isn't working all that well for them at present. To be fair, it is still better than where they were in the past when they focused on more games; there were fiscal years in which they were losing hundreds of millions of dollars instead of tens of millions of dollars.
*edit* On an additional note: It seems that Atari still has several lawsuits outstanding; depending on the outcome of those lawsuits, Atari could lose a substantial amount of money ($30,000,000.00 for the Turbine lawsuit alone) depending on when those finish up (and who wins, of course).
"Oh my, how horrible, someone is criticizing a MMO. Oh yeah, that is what a forum is about, looking at both sides. You rather have to be critical of anything in this genre as of late because the track record of these major studios has just been appalling." -Ozmodan
I don't care about the financial stuff. I don't think think Atari, STO, CO or Cryptic is going away as some would hope. Anyways...
I just wanted to say I am really interested in the XBLA game Dungeons and Dragons, Daggerdale. It looks like a good dungeon run with friends. Will see what Xbox Fanboy says when they do a playthrough.
Thanks for reminding me of this game, I forgot about it.
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