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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
180
RECENT DEVELOPMENTS
PRESS RELEASE OF JULY 23, 2010
REVENUE FOR THE FIRST QUARTER OF FISCAL YEAR 2010-2011
Atari announces 3-month revenues for FY 2010/2011 (unaudited data)
• Atari Net Revenue of €19.3 million for the 1
st
quarter of fiscal year 2010/2011 vs. €54.5 million in the prior
year
• Online revenue as a percentage of total Net Revenue increases to 44% from 4% in the prior year
Lyon – France, July 23
rd
, 2010 – Atari, S.A. announces its consolidated first quarter net revenue for fiscal year
2010/2011 (ended June 30, 2010) at €19.3 million, a 65% decline at current exchange rates and a 67% decline at
constant exchange rate. This decrease, in line with expectations, was mainly due to a planned smaller number of
releases during this quarter when compared to last year: only one major game was released (Sandlot Sluggers) in this
quarter vs. two major releases (Ghostbusters: The Video Game in the United States and The Chronicles of Riddick:
Assault on Dark Athena) in the same quarter last fiscal year. Online revenue increased in both amount and percentage of
total revenue as compared to the prior period as the Group continues its strategic shift towards higher margin revenue
streams.
This decrease is primarily timing-related as a significant portion of the net revenue for this fiscal year is expected to be
generated in the second half of the fiscal year when most of the new Atari games will be released.
Net revenue breakdown by segment was as follows:
(€ millions)
Q1
2010/2011
% revenues
Q1
2009/2010
% revenues
Change in
€m Change in
%
Revenue
19.3
100.0%
54.5
100.0%
(35.2)
-64.6%
Online 8.4
43.5%
2.0
3.7%
6.4
320.0%
Retail and other 10.9
56.5%
52.5
96.3%
(41.6)
-79.2%
Online revenue, comprised primarily of subscription and digital distribution revenue, was €8.4 million – an increase of
€6.4 million over the prior year as FY 2010/2011 included a full quarter of both Star Trek Online and Champions Online
subscription revenue over the period. Both games launched after the first quarter of the prior fiscal year. Online revenue
was 44% of total net revenue as compared to 4% in the first quarter of the prior fiscal year.
Retail and other revenues, comprised primarily of sales to retail stores, decreased by €42 million to €10.9 million as
compared to the prior year first quarter primarily due to the planned fewer releases of titles in FY 2010/2011 as
compared to the prior fiscal year and lower third-party distribution revenue. Retail and other revenues were 56% of total
net revenue as compared to 96% in the first quarter of the previous fiscal year.
Outlook for 2010/2011
The Group reiterates its prior guidance and expects to report considerable improvement in current operating income
(loss) in each of the semesters in fiscal year 2010/2011 as compared to the equivalent periods in fiscal year 2009/2010.
Below is an indicative timeline of projected and already announced releases for later this fiscal year and 2011:
•
Test Drive Unlimited 2 for Xbox 360, PlayStation3 and PC is expected in the second semester of the fiscal year.
•
Haunted House for Wii, Xbox LIVE Arcade for Xbox 360, and PC on September 21, 2010,
•
Backyard Sport: Rookie Rush for Xbox 360, Wii, Nintendo DS and PC shipping October 26, 2010,
•
A series of retail, XBLA, PSN and PC download releases based upon Atari’s classic video game brands in the
second half of the year,
•
The Witcher 2: Assassins of Kings, planned to be released for PC in Spring 2011,
•
Numerous casual and social online game releases based upon Atari’s classic video game brands in the fiscal
year.
Main events OF Q1 2010/2011
Changes in the management team with two new members joining the board of Directors: Atari’s co-founder Nolan
Bushnell and online entrepreneur Tom Virden. In addition, Gina Germano left the Board.