Atari Losses To Reach $70 Million
According to a new regulatory filing, as reported by website NewYorkBusiness.com
, publisher Atari (Alone In The Dark
) is to report a wider than expected loss for its financial year ending March 31st.
The U.S. arm of troubled French publisher Infogrames is now set to report a loss of $71.3 million, compared to a loss of $69 million in the previous year. The company previously announced that sales for the year
were approximately $121.6 million.
The full financial earnings results were delayed in order to finalize the amount of a goodwill impairment charge for the fourth quarter, brought about by a drop in its market capitalization (the company's stock price multiplied by the number of outstanding shares).
This charge is now put at a full $54.1 million. Without this charge, the company has calculated it would have experienced a loss of only $17.2 million, significantly better than the previous year.
The struggling company recently cut its workforce by 20 percent
- as part of a restructuring plan which has also seen the sale of many of Infogrames’ internal studios and franchises such as Stuntman
. It is looking to refocus on lower-budget and casual console titles.