Atari 2010 Annual Report Download - page 60

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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GENERAL INFORMATION ABOUT THE GROUP
Atari SA (hereinafter referred to as “Atari” or the “Company”) designs, produces, publishes and distributes interactive
entertainment software for a wide range of media systems (game consoles, PCs, etc.). The Group derives recurring
revenue primarily from the sale and licensing of products developed in-house or under publishing agreements with third
parties, the distribution of other publishers’ products and the production of software on behalf of third parties. The
Group's customers include general retailers, specialty game software stores, computer superstores, and other publishers
and distributors throughout the world.
The Company’s principal office is at 1 Place Verrazzano, 69009 Lyon (France).
NOTE 1 – SIGNIFICANT EVENTS OF THE YEAR
1.1. C HANGE IN THE C OMPANY NAME
In May 2009, the board of directors decided to change the Company’s name from Infogrames Entertainment to Atari, in
order to enable the Company to make more effective use of the Atari brand, with its worldwide recognition and consumer
loyalty, factors that play a key role in the Group’s online, product and licensing strategies.
1.2. I MPLEMENTATION OF A COST - CUTTING PLAN
In May 2009, the Company announced an additional restructuring plan in the first quarter of 2009-2010, in response to
the possibility of continued low demand and aimed at advancing the development of its online business. The
reorganization reduced administrative expenses and needs for working capital, primarily through the sale of the Group’s
entire interest in Namco Bandai Partners in Europe, significant cost-cutting measures and a more efficient organization of
Group offices worldwide.
1.3. C OMPLETION OF THE SALE OF A TARI ’ S 66- PERCENT STAKE IN N AMCO B ANDAI P ARTNERS TO N AMCO B ANDAI
G AMES E UROPE
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, adjusted for cash, liabilities and estimated price adjustments.
The transaction caused Atari to record a capital gain of approximately €15.0 million 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. M ANAGEMENT CHANGES
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 and director;
• 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, VP, 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 addition, in April 2010, the Board of directors co-opted two
new Board members: the BlueBay High Yield Investment (Luxembourg) SARL represented by Atari’s co-founder Mr.
Nolan Bushnell and online entrepreneur Tom Virden, David Gardner and Phil Harrison have resigned from the Board of
Directors in April 2010 and Gina Germano in May 2010. As of the date of the present document, the board of directors
has the following membership: