Atari 2011 Annual Report Download - page 32

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
32
The table above shows that over the past three Fiscal Year the Company used €159.8 million to finance its operations
and acquire intangible and fixed assets.
During and prior to Fiscal Year 2009/2010, the Group made significant losses that have eroded its equity and cash
position. As of March 31, 2011, shareholders’ equity (net of minority interests) was negative at minus €3.8 million,
including a net loss of €6.2 million for the 2010/2011 Fiscal Year. On that same date, the Group’s net debt was €36.0
million and the Group had unused drawdown capacity of approximately €6.9 million under its credit facility.
In order to ensure that it has the requisite funds to finance its operations in 2011/2012 (and after) and to improve its
capital structure, the Group’s strategy focused on 4 main priorities:
• Continue the focus on Atari owned franchises and key strategic licenses for fewer but more profitable releases
and further expansion into online, digital download, mobile game segments. This is supported by a strict
investment discipline addressing all appropriate platforms (online, console, mobile). At this stage, Atari’s games
will mainly be developed externally with selected third party game studios to contribute to a more flexible and
cost efficient organization;
• Reinforcing licensing and franchise revenue streams through licensing of games and merchandising to
continually leverage Atari’s strong catalogue of popular games and third party franchises;
• Continuing to optimize operations, focusing at this final stage to adapt the overhead and the Research and
Development expenses to Company’s the revenue and product strategy;
• Setting up partnerships to support the Company’s development, publishing and distribution efforts to derive
maximum benefit from its large portfolio of intellectual properties, its brand and its organization.
On this basis, the Group has applied the going concern principle in preparing its consolidated financial statements,
based on the following assumptions:
• Disposal of the Cryptic Studios;
• Extension of the credit facility line granted by BlueBay until December 30, 2011 for €49 million (for more
information, refer to note 27.3), and
• Operating cash flows for the Fiscal Year 2011/2012 in line with the Business plan.
Group management believes that its projections are reasonable. However, in light of the uncertainties inherent in
financial negotiations and strategic refocusing under adverse economic circumstances, results may differ from forecasts.
Those circumstances could restrict the Group’s ability to finance its current operations and result in adjustments in the
value of the Group’s assets and liabilities.
Based on the above-described measures and assumptions, as well as the Budget for the next 12 months, the
management of the Group believes that the Group's financial resources – including the extension of the credit facility-
will be sufficient to cover the Group's operating expenses and capital expenditure for the 12-month period ending as of
March 31, 2012. In the case the financial resources of the Group would not be sufficient, the management believes that
the BlueBay credit facility would be extended beyond December 30, 2011.
The table below shows the maturity of the debt’s principal and interest:
March 31,
2011
€ in million Nominal Interests Nominal Interests Nominal Interests Nominal Interests Nominal Interests Nominal Interests
Bond debt 8.5 5.3 1.0 0.8 0.7 0.1 0.6 - 5.9 2.6
Financial debt 42.8 42.4 0.4 42.4 0.4
Other financial debt 1.1 0.9 0.2 1.1 -
Total financial liabilities 52.4 48.6 1.4 0.2 0.8 - 0.7 - 0.1 0.6 - 49.4 3.0
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015
March 31, 2016 and
beyond Total