Atari's Losses Grow

By Carlos Bergfeld, Jul 03, 2007 12:05pm PDT New York-based publisher Atari said Monday it will report a larger-than-anticipated loss for the fiscal year ending March 31.

An SEC filing stated an expected net loss of $71.3 million, compared to a loss of $69 million during the same period last year. The $71.3 million loss includes a $54.1 million charge for impairment of goodwill, essentially a reassessment of certain intangible assets.

The reassessment caused Atari to delay the filing of its annual report. A June 13 statement by the company pointed to a declining market capitalization--stock price multiplied by outstanding shares--as the reason for the charge.

The company estimated net revenues for the fiscal year at $121.6 million, a 44 percent decrease from the previous year. These numbers continue a downward trend in revenues, as 2006's net revenues were down 46 percent from the prior year.

These latest financial difficulties come on top of a May announcement detailing a 20 percent reduction in total workforce to be completed by July 31.

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