Atari today announced financial results for the fiscal 2006 fourth quarter and year ended March 31, 2006. Net revenue for the quarter ended March 31, 2006, was $54.7 million versus $64.4 million in the prior year's comparable quarter, reflecting the company's release of fewer titles in this quarter compared to the prior year, as well as the impact on reserves caused by the company's previously-announced GamersFIRST program which began June 1, 2006. The two-fold, consumer-oriented program includes a new price point of $19.95 on all existing titles for PlayStation 2, Xbox, Nintendo GameCube, Game Boy Advance and Windows (excluding Dungeons & Dragons Online), and the digital distribution of Windows titles included in the program at Valve and Direct2Drive. Publishing net revenue was $47.1 million, compared to $52.7 million in the prior year. Distribution revenue was $7.6 million versus $11.7 million in the comparable year-earlier period.
Net loss for the fiscal 2006 fourth quarter was $4.3 million, compared to $9.1 million in the year earlier period, which was net of a gain on sale of certain intellectual properties totaling $6.2 million in quarter. The company previously announced on February 9, 2006, that it would begin to take steps to streamline its U.S. operations. In doing so, the Company recorded restructuring charges of $2.5 million in the fourth quarter of fiscal 2006. Excluding restructuring charges, the loss for the fourth quarter of fiscal 2006 would have been $1.8 million.
Net revenue for the year ended March 31, 2006, was $218.7 million versus $407.8 million in the comparable year-earlier period. Publishing net revenue was $165.5 million versus $353.6 million in the prior year-end period, while distribution revenue was $53.2 million versus $54.2 million in the comparable year-earlier period.
Net loss for fiscal 2006 was $67.1 million, compared to net income of $5.7 million in the year-earlier period, which was net of a gain on sale of certain intellectual properties totaling $6.2 million in quarter. The company recorded restructuring charges of $8.9 million for the year-end period ended March 31, 2006. Excluding restructuring charges, the loss for the fiscal year would have been $58.2 million, or $0.45 per share. As the year-end results were substantially below the Company's expectations, the uncertainties resulting from the Company's financial condition raise substantial doubt about the Company's ability to continue as a going concern.
Atari's product lineup for fiscal 2007 is expected to include the following new releases:
Alone in the Dark (PLAYSTATION 3, Xbox 360 and Windows), Arthur and the Minimoys (PlayStation 2, PSP , Nintendo DS, Game Boy Advance and Windows), BattleZone (PSP system), Dragon Ball Z: Budokai Tenkaichi 2 (PlayStation 2 and Nintendo Wii), DUNGEONS & DRAGONS: Tactics (PSP system), Earthworm Jim (PSP system), HOT PXL (PSP system), Neverwinter Nights 2 (Windows), Super DBZ (PlayStation 2), and Test Drive Unlimited (Xbox 360, PC, PlayStation 2, PSP system), among others.
