Atari 2009 Annual Report Download - page 23

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
23
Completion of the sale of Atari Europe's 66% stake in Namco Bandai Partners
In early July 2009, Atari completed the sale of the remaining 66% interest held by Atari Europe in Namco Bandai
Partners. As consideration for the assets sold, Atari received a cash payment from Namco Bandai Games Europe
totaling approximately €36.3 million, based on an enterprise value for Namco Bandai Partners of €60 million, adjusted for
cash, debt, price adjustments and repayments of intra-group loans.
Extension of the Banc of America credit facility
In addition to obtaining Amendment to the credit facility agreement entered into with Banc of America and described in
“Highlights of the year” above, and in order to cover its operating financing needs for fiscal year 2009-2010, the
Company has entered into negotiations to extend the maturity of said facility from December 31, 2009 to July 2010.
Based on the negotiations that have taken place so far, management considers it likely that Banc of America will grant
this extension.
2. AN ALYSIS OF THE CONSOLID AT ED FINANCIAL STATEMENTS
2.1. ADJUSTED NET INCOME (LOSS)
The Company considers adjusted net income (loss), a non-GAAP measure, as a relevant indicator of the Group‟s
operating and financial performance. Atari‟s Management uses adjusted net income (loss), because it provides a better
illustration of the performance from continuing operations, especially for fiscal year 2008-2009, which was a year of
transformation, by excluding most non-recurring and non-operating items related to costs of transformation. Adjusted net
income (loss) should be considered in addition to, and not as a substitute for, other IFRS/GAAP measures.
- =
(€ millions - IFRS 5 2008-2009 2007-2008 2008-2009 2007-2008 2008-2009 2007-2008
Revenue 136.4 90.3 - - 136.4 90.3
Cost of goods sold (87.9) (47.6) (3.8) - (84.1) (47.6)
Gross margin 48.5 42.7 (3.8) - 52.3 42.7
Gross margin (%) 36% 47% 38% 47%
Research and development expenses (67.0) (46.5) (27.1) - (39.9) (46.5)
Marketing and selling expenses (19.0) (15.6) - - (19.0) (15.6)
General and administrative expenses (25.0) (30.5) - - (25.0) (30.5)
Share-based payment expense (6.4) (3.5) - - (6.4) (3.5)
Current operating income (loss) (68.9) (53.4) (30.9) - (38.0) (53.4)
Gains (losses) from disposals of assets (0.1) 13.3 (0.1) 13.3 - -
Restructuring costs (13.9) (12.3) (13.9) (12.3) - -
Impairment of goodwill (40.3) - (40.3) - - -
Other operating income (expenses) 0.0 (0.1) - (0.1) - -
Operating income (loss) (123.2) (52.5) (85.2) 0.9 (38.0) (53.4)
Cost of debt (7.7) (11.6) - - (7.7) (11.6)
Other financial income (expense) (4.1) (1.4) - - (4.1) (1.4)
Income tax (1.1) (0.1) - - (1.1) (0.1)
Profit (loss) from continuing operations (136.1) (65.6) (85.2) 0.9 (50.9) (66.5)
- - - - - -
Profit (loss) from discontinued operations (90.8) 3.1 (90.8) 3.1 - -
Consolidated net income (loss) (226.9) (62.5) (176.0) 4.0 (50.9) (66.5)
Minority interests 0.8 11.4 - - 0.8 11.4
Net income (loss) for the year attributable to
equity holders of the parent
(226.1) (51.1) (176.0) 4.0 (50.1) (55.1)
Adjusted - Atari
Actual - Atari (ex-
Infogrames
Entertainment)
Main costs of
transformation
(1) 2007/2008 and 2008/2009 figures have been prepared in accordance with IFRS and have been restated, where applicable, in
accordance with IFRS 5. The net income/(loss) from the Namco Bandai Partners business, which as of March 31, 2009 was
in the process of being disposed of, is reported on the line “Profit (loss) from discontinued operations” as of April 1, 2007.
2007-2008 and 2008-2009 Group revenue and current operating loss exclude the Namco Bandai Partners business.
(2) Atari considers Atari„s adjusted net loss, a non-IFRS/GAAP financial measure, as a relevant indicator of the Company‟s
operating and financial performance. Atari‟s management uses Atari„s adjusted net loss because it provides a better
illustration of the performance from continuing operations, especially for fiscal year 2008-2009 which was a year of
transformation, by excluding most non-recurring and non-operating items related to costs of transformation. Atari„s adjusted
net loss should be considered in addition to, and not as a substitute for, other IFRS/GAAP financial measures. Please see the
table below for a reconciliation of the net income as reported in the income statement and adjusted net income (loss).