Atari Reports Weak Q3

Officials from Atari have announced the company’s financial results for the third quarter and nine months ended December 31. Net revenue for the third quarter was $190.6 million compared to $210.6 million in 2002. Net income for the quarter was $23.0 million, or $0.19 per share, compared to net income of $30.1 million, or $0.43 per share, in the same period in 2002. The decline in net revenues was attributed to lower replenishment orders over the holiday season and the company's decision to reduce its third party distribution operations. Despite a softer than anticipated holiday selling season, the company has improved its market share, becoming the fourth ranked independent console game publisher in 2003 (up from number five in 2002) and the third ranked PC games publisher. Net revenue for the nine-month period was $402.5 million versus $449.6 million in the same period in 2002. Net income for the same period was $18.1 million, prior to a one time non-cash dividend relating to the company's September recapitalization and public offering. Excluding the dividend, net income per share for the nine months was $0.20. The company expects full year results of between $460 million and $470 million, with net income and earnings per share expected to break even. Source: Business Wire