ATARI : ATARI : 2012-2013 fourth-quarter and full-year revenues
2012-2013 fourth-quarter and full-year revenues
Preliminary unaudited data
Approved by the Board of Directors on May 13, 2013
In view of the necessary deconsolidation of the American subsidiaries which
the bulk of the assets and the absence of investments due to the Chapter 11
the Group's revenues have been reduced to a symbolic level
Paris, France - May 15, 2013
Million 1^st quarter 2^nd 3^rd 4^th
euros (Apr-Jun) quarter quarter quarter TOTAL
(Jul-Sep) (Oct-Dec) (Jan-Mar)
FY 2012-13 Actual 6.8 4.1 3.9 0.9 15.7
% of rev. 43.3% 26.1% 24.8% 5.7% 100.0%
FY 2011-12 Actual 11.2 8.3 11.0 1.2 31.7
% of rev. 35.3% 26.2% 34.7% 3.9% 100.0%
REVENUES FOR THE 4^TH QUARTER OF 2012-2013
Faced with limited financial resources, the Atari Group's American
subsidiaries requested and obtained, on January 21, 2013, the opening of
Chapter 11 proceedings in the US ("the proceedings").
The proceedings underway in the US on the American subsidiaries (Atari, Inc.,
Atari Interactive, Inc., Humongous, Inc., California US Holdings, Inc.)
incorporate many stakeholders including, creditors, the U.S. trustee and the
bankruptcy judge in charge of the proceedings in addition to the local
management and the independent directors. In this context, given the
complexity of the proceedings and means of action and protest which each part
has, Atari SA no longer has a dominant influence on all management decisions
made during the proceedings.
As a result, the U.S. subsidiaries, even if they remain for the time being
Atari SA property are deconsolidated as of 21 January 2013, pending the
outcome of the proceedings.
In this way, revenues for the 4^th quarter of 2012-13 include revenues
generated by the American companies exclusively for the period from January 1
to 21, 2013, in addition to revenues recorded over the full quarter by Atari
S.A. and Atari Europe S.A.S. (the other non-American subsidiaries are
In this context, the Atari Group's business has been maintained, but at a
nominal level, with revenues for the 4^th quarter of 2012-13 totaling 0.9
million euros. They include 0.7 million euros of revenues generated by the
American subsidiaries between January 1 and 21, 2013 and 0.2 million euros
linked to agreements for distribution by the European companies for the entire
fourth quarter. They also exclude management fees^.
These revenues compare with 1.2 million euros for the previous financial year,
on a pro forma basis with the same assumptions.
As a reminder, the revenues figures as of March 31 2012 as released in 2012
are also set forth in the table below:
1^st 2^nd 3^rd 4^th
Million euros quarter quarter quarter quarter TOTAL
(Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar)
FY 2011-12 Actual
published 11.2 8.3 11 9.1 39.6
(as published in % of rev.
2012) 28.3% 21.0% 27.8% 23.0% 100.0%
From April 1, 2013, the American subsidiaries will no longer make any
contribution towards the Group's revenues, at least until the end of the
Chapter 11 proceedings.
2012-13 FULL-YEAR REVENUES
For FY 2012-13, Atari recorded 15.7 million euros in consolidated revenues
(actual), compared with 31.7million euros in 2011-12 on a comparable basis.
The contraction in revenues (-50.4%) primarily reflects the lower level of
revenues on digital activities and the fact that the license business has not
At March 31, 2013, Atari S.A. had 1.5 million euros in cash and cash
equivalents, compared with 5.4million euros at the end of March 2012.
SITUATION UPDATE AND OUTLOOK
Since the situation update published on April 24, 2013, no further information
has been released by the New York Bankruptcy Court (the "Court") concerning
the offer submission procedure.
Faced with the uncertainties relating to the proceedings that are underway in
the US, where the Group's strategic assets and most of its business are
located, the outcome of the Chapter 11 proceedings in the US will be decisive
for all the stakeholders. No further investments may be made at this stage and
some non-strategic assets are currently being sold off.
At the start of FY 2013-14, Atari S.A. sold the ownership of "Outcast" for a
nominal amount. In addition, the rights for Desperados and Silver are
currently being sold, also for non-significant amounts.
The Group will be publishing its financial statements for the year ended March
31, 2013 further to the Chapter 11 proceedings, based on a schedule that will
be announced when information is available concerning the American
proceedings. At this stage, the Group is not in a position to confirm that
these accounts will be able to be approved and published within the regulatory
SUSPENSION OF TRADING MAINTAINED
Considering the complexity and uncertainties of the US Proceedings, the
Company is not at this stage in a position to request the resumption of
trading of Atari shares on the NYSE Euronext Paris market.
At this stage, no guarantees can be given concerning the potential recovery
for existing shareholders. The market and the shareholders will be informed
with 48 hour prior notice if trading is to resume.
About Atari. SA
Atari (www.atari.com) is a multi-platform. global interactive entertainment
and licensing company. The original innovator of video gaming. founded in
1972. Atari owns and/or manages a portfolio of more than 200 games and
franchises. including world renowned brands like Asteroids®. Centipede®.
Missile Command®. Pong®. Test Drive®. Backyard Sports® and RollerCoaster
Tycoon®. Atari capitalizes on these powerful properties by delivering
compelling games online (i.e. browser. Facebook® and digital download). on
smartphones and tablets and other connected devices. The Company also develops
and distributes interactive entertainment for video game consoles from
Microsoft. Nintendo and Sony. As a licensor. Atari extends its brand and
franchises into other media. merchandising and publishing categories. For more
Calyptus - Marie Ein
Tel + 33 1 53 65 68 68
Preliminary unaudited data - Audit underway
Approved by the Board of Directors on May 13, 2013
Notes for readers:
The Group has adopted the provisions of IFRS 10 and therefore deconsolidated
the American companies concerned by the bankruptcy proceedings in the US since
January 21, 2013.
The company Eden Games, subject to a court-ordered liquidation since February
19, 2013, has also been excluded from the basis for consolidation at March 31,
Breakdown of revenues by quarter
Fiscal Year 2012/2013 Fiscal Year 2011/2012
Actual % of total Actual % of total
€ million revenues revenues
(April - June) 6.8 43.3% 11.2 35.3%
2nd quarter (July
- Sept.) 4.1 26.1% 8.3 26.2%
3rd quarter (Oct.
- Dec.) 3.9 24.8% 11.0 34.7%
4th quarter (Jan.
- March)* 0.9 5.7% 1.2 3.9%
TOTAL 15.7 100.0% 31.7 100.0%
* From 1^st to 21^st of January for American companies
Revenues for 4th quarter of 2012-13
Contribution by operating segment
Million FY 2012/2013 % of FY % of Change Change
Euros revenues 2011/2012 revenues in € m in %
Digital 7.9 50.0% 16.3 52.5% -8.4 -51.8%
Retail 7.5 47.4% 11.1 30.3% -3.6 -32.8%
Licensing 0.4 2.5% 4.3 17.2% -3.9 -90.7%
net 15.7 100.0% 31.7 100.0% -16.0 -50.4%
Atari SA charges its subsidiaries management fees to cover the costs and
time devoted to their management and support. These fees are eliminated for
consolidated subsidiaries. For the American subsidiaries, these fees were only
invoiced for the period up until the start of the Chapter 11 proceedings, i.e.
January 21, 2013. Moreover, in the same way as other receivables with these
subsidiaries, their actual receipt is subject to the favorable outcome of the
proceedings. As such, management fees relating to the American companies have
not been recognized in revenues for the period.
Atari: 2012-2013 fourth-quarter and full-year revenues
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Source: ATARI via Thomson Reuters ONE
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