Atari sees FY11/12 revenues fall 34% to $51 million as it transitions to mobile and online games
French-US publisher Atari (EPA: ATA) has announced its unaudited preliminary financials for the 12 months ending 31 March 2012.
Net revenue was 39.6 million (around $51 million), down 34 percent year-on-year.
The company made a net loss of 3.7 million ($4.8 million), down from the 6.2 million loss ($8 million) it made in FY10/11.
Atari said that this situation was expected as it reduces its retail games business, shifting towards building and monetising its mobile and online games, as well as developing its licensing business.
Knuckle down
"Our efforts have focused on execution and maintaining a strict investment discipline, on top of a significant adjustment of the company's perimeter aiming to restore long term profitability," explained CEO Jim Wilson.
"For 2012/13, we will seek to expand further in the fast-growing mobile games segments and drive the company to further grow its online and franchise licensing businesses."
Atari's financials were also influence as it shuttered or sold off non-core operations. For example, French studio Eden Games generated losses of 4.5 million ($5.8 million), while Atari raised 5.9 million ($7.6 million) by selling off its 38.6 percent stake in GameOne to Viacom.
Bright lights
As part of this shift, Atari also revealed that its recent smartphone games Breakout: Boost, Atari's Greatest Hits and Asteroids Gunner have collectively generated more than 10 million downloads on iOS and Android.
Revenue from mobile and online operations were 20.8 million ($27 million) or 52.5 percent of total revenues (compared to 24.8 percent in FY 2010/11), and grew 39.6 percent year-on-year.
Atari ended the year with cash and equivalents of 5.4 million ($7 million) compared to 16.4 million ($21 million) 12 months ago.
However, it reduced its net debt from 36 million ($47 million) to 20.8 million ($27 million), mainly as a result of it selling Cryptic Studio to Chinese outfit Perfect World for around 35 million ($45 million).
Companies
