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Atari Sales Problems, Lowered Q4 Prospects and Offices Closing

Discussion in 'Game/SP News & Comments' started by chevalier, Feb 10, 2005.

  1. chevalier

    chevalier Knight of Everfull Chalice ★ SPS Account Holder Veteran

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    According to Atari's PR, two offices in the US are going to be closed and some people will be laid off. Here is a snip:

    In a phone conversation today, Atari spokesperson Nancy Bushkin told Computer Games Magazine that plans are still being formulated for how the closing of their Beverly, MA and Santa Monica, CA offices will be handled. Bushkin did confirm that the closings will not happen immediately and Atari plans to contact the people in both offices over the next several days to find out what the exact time frame will be for consolidating their publishing operations. Those jobs will soon be based out of Atari’s main corporate facilities in New York City Bushkin would not state how many people would be laid off as there will be some team members who will move to New York City. Bushkin said there are currently 70 people at their Beverly, MA offices and 25 at their Santa Monica, CA offices. The team members affected were in sales, marketing and PR along with game producers.

    Read the rest at Computer Games Magazine.

    The forecast for Q4 needed to be lowered and the company blames it on the troubles with console game sales.

    The company also lowered its forecast for its fourth quarter and fiscal year end, anticipating net revenue of $70 million to $80 million, with a net loss of up to $10 million, or 8 cents a share. The estimates exclude restructuring charges associated with the closing of the offices.

    Analysts surveyed by Thomson First Call had a consensus forecast of fourth-quarter revenue at $98.7 million, with earnings of 5 cents per share.

    Following the third-quarter results, analysts left their stock ratings unchanged, though opinions were mixed. Analysts at Harris Nesbitt reiterated an "outperform" rating, while Terra Nova assigned the stock an "underperform" rating after initiating Atari coverage in November with a "sell" rating. Analysts at UBS kept their rating at "neutral" with a 12-month price target of $2.75.

    During the quarter, Atari pushed the release of "Dragon Ball Z: Sagas" forward to the final week of fiscal 2005, and moved "Dragonshard" and "Boiling Point" to fiscal 2006.

    Atari also blamed the negative effect of game console shortages in the holiday season for part of its problems.

    Read the rest at MarketWatch. Also see our Atari Q3 news post.
     
    chevalier, Feb 10, 2005
    #1
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