Atari 2009 Annual Report Download - page 4

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
4
Introductory note to the reader
The 2007-2008 and 2008-2009 financial data were based on IFRS and were restated where applicable in accordance
with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. The net income (loss) from Namco Bandai
Partners SAS (“Namco Bandai Partners”, formerly Distribution Partners), which was in the process of sale as of
March 31, 2009, is reported on the line “Profit (loss) from discontinued operations” as from April 1, 2007. Group revenue
and current operating income for fiscal year 2007-2008 and 2008-2009 exclude the Namco Bandai Partners business.
Atari's management uses an adjusted net income (loss) measure because it provides a better illustration of the
performance from current operations, particularly 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 considers the adjusted net
income (loss), a non-IFRS/GAAP financial measure, as a relevant indicator of the Group's operating and financial
performance. Atari‟s adjusted net income (loss) should be considered in addition to, and not as a substitute for, other
IFRS/GAAP financial measures.
The Company also wishes to draw the reader's attention to the fact that, in May 2009, the Company's Board of Directors
decided to implement the Company's corporate name change from Infogrames Entertainment to Atari, in accordance
with the decision taken by the Shareholders‟ Meeting of September 25, 2008. To facilitate the reading of the document,
the Company will be referred to herein as "Atari" or "the Group" or "the Company".
GENERAL INFORMATION
CORPORATE PROFILE
Atari (“the Company” or “the Group”) is listed on the Euronext Paris market, compartment C (ISIN code: FR0010478248,
ticker: ATA).
The Atari Group‟s main subsidiaries are Atari Inc., Cryptic Studios Inc. and Eden Games (see the Group organization
chart on page 17). Its assets include the Atari brand, the Atari catalog of franchises and intellectual property, the assets
of Cryptic Studios Inc., Eden Studio and the newly-created London studio. The Group is a producer and publisher of
interactive entertainment software for all market segments and all interactive game platforms including consoles from
Microsoft, Nintendo and Sony, smartphones, personal computers, web and online. Atari also distributes video games in
North America through its US subsidiary Atari Inc. and directly to consumers via www.atari.com.
Atari has an extensive catalog of popular games based on original franchises (Test Drive, Alone in the Dark, V-Rally, My
Horse & Me, the Backyard Sports franchise, Total Annihilation, Outcast etc.), Cryptic Studios Inc. titles (Star Trek Online,
Champions Online), publishing properties (Ghostbusters, The Chronicles of Riddick, The Witcher, Race Pro etc.),
international licenses (Dungeons & Dragons, Jamie Oliver, etc.) and classic games covering the entire history of the
video game industry (Pong, Missile Command, Asteroids, etc.).
Fiscal year 2008-2009 was a year of transformation: from a publishing and distribution company to a company focusing
on publishing and online operations – particularly through Cryptic Studios Inc. – and US publishing and licensing
businesses. As part of this transformation, in May 2009 the Company changed its corporate name from Infogrames
Entertainment to Atari. In doing so, it was able to make the best use of the Atari brand by capitalizing on strong
worldwide brand recognition and customer loyalty – key drivers to implementing the Company‟s online, product and
licensing strategies.
Significant action was taken in fiscal year 2008-2009 towards strengthening Atari‟s online platform, including:
 The acquisition of Cryptic Studios, a leading MMO (massively multiplayer online) game creator, developer and
operator, which owns state-of-the-art games and technology expected to boost Atari‟s online business growth;
 The divestiture of distribution operations to accelerate the shift towards online game content, in two steps. First,
in February 2009, the completion of the sale to Namco Bandai Games Europe of 34% of the Company‟s stake
in Namco Bandai Partners as well as the signing of a definitive agreement establishing a strategic retail
distribution partnership in Europe, Australia, New Zealand and Africa, with exclusive distribution rights for video
games produced by the Namco Bandai group and Atari and, second, in March 2009, Atari Europe‟s exercise of
its put option to sell its remaining 66% stake in Namco Bandai Partners to Namco Bandai Games Europe –
which was finalized in early July (for more details, see Notes 1 and 22 to the consolidated financial statements);
 The finalization of the “Atari Transformation” cost reduction program to restructure the Group‟s worldwide
operations and the acquisition of the Atari Inc. shares that were not yet held by the Company.
Atari‟s strategic plan is designed to create a leading 21st century online gaming company and to transform the publishing
business. This transformation entails focusing on profitable online games, particularly from owned franchises including
original driving franchises, MMOs and Atari classic games covering the entire history of the video game industry. The
Company also announced plans to cut costs to better support its strategy.
FINANCIAL HIGHLIGHTS
For the year ended March 31, 2009, the Company‟s total revenue grew by 51.1% to €136.4 million.
The following table presents the Group‟s main financial figures prepared in accordance with IFRS 5, where applicable(1):