Atari 2010 Annual Report Download - page 111

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
111
NOTES TO THE FINANCIAL STATEMENTS
These notes form an integral part of the financial statements for the year ended March 31, 2010 of Atari (formerly
Infogrames Entertainment SA, hereinafter the “Company”), which had total assets of €302.3 million and reported a profit
of €22.6 million in its income statement, presented in list form.
The annual financial statements for the periods ended March 31, 2010 and March 31, 2009 cover periods of 12 months.
1. Material events
1.1. Change in the Company name
In May 2009, the Board decided to change Infogrames Entertainment's name to Atari. This decision enables the
Company to make the best use of the Atari brand, capitalizing on worldwide strong name recognition and affinity, which
are key drivers to implement the Company's online, product and licensing strategies.
1.2. Changes to the senior management team and the Board of Directors
In May 2009, the Company announced that Jeff Lapin would join the Company as its Chief Operating Officer; he became
the Chief Executive Officer of the Company in December 10, 2009, David Gardner and Phil Harrison having left their
operational functions within the Company.
As of the date of the present document, the executive management team is composed as follows:
• Jeff Lapin, Chief Executive Officer
• Jim Wilson, Chief Executive Officer of Atari Inc.
• Phil Veneziano, Chief Financial Officer of Atari Group
• John Needham, Chief Executive Officer of Cryptic Studios
• Kristen Keller, Vice-President, General Council
• Alexandra Fichelson, General Secretary;
• Thom Kosik, Vice-President of Atari Inc.
At the Board level, Atari also announced in September 2009 that Michel Combes would leave the Board of Directors
effective October 1, 2009, to pursue other commitments. In April 2010, the Board added two new directors, The BlueBay
High Yield Investment (Luxembourg) SARL represented by Nolan Bushnell, a co-founder of Atari, and online
entrepreneur Tom Virden. David Gardner and Phil Harrison resigned from the Board of Directors in April 2010 and Gina
Germano in May 2010. As of the date of this document, the Board of Directors had the following membership:
• Frank E. Dangeard, Chairman
• Dominique D'Hinnin, non-executive Vice Chairman, independent director
• Jeff Lapin, Chief Executive Officer
• Didier Lamouche, independent director
• Pascal Cagni, independent director
• Tom Virden, independent director
• The BlueBay Value Recovery (Master) Fund Limited, represented by Gene Davis
• The BlueBay High Yield Investment (Luxembourg) SARL represented by Nolan Bushnell.
1.3. Completion of the sale of Atari's 66%-percent stake in Namco Bandai Partners to Namco Bandai Games
Europe
On July 7, 2009, Atari completed the sale of its 66-percent stake in Namco Bandai Partners to Namco Bandai Games
Europe, in return for a cash payment of approximately €36.3 million by Namco Bandai Games Europe, placing an
enterprise value on Namco Bandai Partners of 60 million euros, adjusted for cash, liabilities and estimated price
adjustments. The transaction caused Atari to record a capital gain of approximately 15.0 million euros in its financial
statements for the full year 2009-2010, which includes the resolution of the net debt adjustment
With the sale, Atari disposed of a fragmented distribution activity in Europe and the Asia-Pacific region, which is no
longer part of its core business.
1.4. Success of the financial transaction launched in December 2009 and finalized in January 2010 raising €43
million