2013-2014 First-quarter revenue
Preliminary unaudited data
Approved by the Board of Directors on August 22, 2013
In view of the ongoing Chapter 11 proceedings in the USA,
revenues of the American subsidiaries, which hold the bulk of the assets, are not accounted for.
Paris, France - August 22, 2013
| Q1 2013/2014 | Q1 2012/2013 (pro-forma) | Change | ||||
| €'000 | % of revenue | €'000 | % of revenue | €'000 | % | |
| Digital revenue | 61.3 | 23.0% | 44.9 | 34.7% | 16.3 | 36.3% |
| Retail revenue | 90.7 | 34.0% | 84.7 | 65.4% | 6.0 | 7.0% |
| Licensing revenue | 115.0 | 43.1% | 0.0 | 0.0% | 115.0 | 0.0% |
| Total revenue | 266.9 | 100.0% | 129.6 | 100.0% | 137.3 | 105.9% |
FY 2012/2013 revenue shown above is pro-forma to be compared to FY 2013/2014 revenue. The reported revenue for the first-quarter of FY 2012/2013 (including revenues from the US subsidiaries) was €6.8 million.
FIRST-QUARTER 2013/2014 REVENUE
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").
Given the ongoing proceedings in the United States, its complexity and the loss of dominant influence by Atari SA on business decisions, revenues of the American subsidiaries (Atari, Inc. Atari Interactive, Inc., Humongous, Inc., California U.S. Holdings, Inc.) are not accounted for since January 21, 2013. These subsidiaries are accounted for according to IFRS 5, effective January 21, 2013.
Revenues presented above only included income generated by the Group formed by Atari SA and Atari Europe SAS.
In this context, also marked by the absence of investment, the Atari Group's business has been maintained, but at a nominal level.
Digital revenue, comprised primarily of revenues of the digital distribution, mobile and social/casual platforms, was 61.3 thousand euros, a slight increase compared to the same period of the prior fiscal year. This revenue is exclusively related to the digital distribution contracts historically signed with French companies.
Licensing revenue, at 115 thousand euros, primarily includes revenues generated by the sale of the Outcast property as well as the rights of Desperados and Silver.
Retail revenue, comprised primarily of revenues associated with the publishing and physical distribution of interactive entertainment, was 90.7 thousand euros, a slight increase of 7% compared to the same period of the prior fiscal year.
MAIN EVENTS OF THE FIRST QUARTER OF FY 2013/2014
The Chapter 11 proceedings continues in the United-States and the suspension of trading is maintained pending better visibility on the outcome of these proceedings. The various stages in the Proceedings and the main documents and motions are being published directly by the Court as they progress. They may be consulted online at the following link: http://www.bmcgroup.com/restructuring/Docket.aspx?ClientID=316.
Extension of the credit line maturity: in June 2013, the Company and Alden Capital have agreed to extend the maturity of the 21 million euros credit line from July 25, 2013 to September 30, 2013. Other terms and conditions remain unchanged.
SITUATION UPDATE AND OUTLOOK
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 can be made at this stage.
The Group will publish its financial statements for the year ended March 31, 2013 once it has better visibility on the outcome of the ongoing American proceedings, according to a schedule to be announced later on.
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, consisting of Atari SA and its subsidiaries, is a multi-platform, global interactive entertainment and licensing group. 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 information: www.atari.com
Contact:
Investor relations
Calyptus - Marie Calleux
Tel + 33 1 53 65 68 68
atari@calyptus.net
[1] 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.
