Atari announced today that it will be closing its Beverly, MA, and Santa Monica, CA, publishing studios and consolidate everything at its main New York office.
The move was made as Atari revealed its financial results for the third quarter of the 2005 fiscal year and outlined the primary stages of its strategy since the induction of the new President and CEO, Jim Caparro, at the end of Nov, 2004.
No other details were given about the closure, and as of this time, the company has not answered email seeking more details on the move.
Net revenue for the third quarter, which ended Dec 31, 2004, was $161.8 million, a 15 percent loss over the profits for the same period last year. However, the distribution revenue had a 12 percent increase, with $18.5 million, compared to last year's $16.2 million. The net revenue for the first nine months of the fiscal year was $343.4 million, a $59.1 million loss over last year's earnings.
The decreased net revenue was attributed to a low number of titles released in the quarter, solid competition as well as a shortage of consoles during the holiday season.
"Over the course of the last eight weeks, we've done an in-depth analysis of all aspects of our Company, realistically assessing our organizational complexity, identifying a multitude of untapped opportunities, and mapping out the strategy for realizing our primary objectives: to strengthen Atari's competitive position in the marketplace and enhance shareholder value," said Caparro in a press release. "In a short time, we've begun taking aggressive steps to address structural, operational and financial issues which we anticipate will better position the Company."
"Operationally, we've initiated a complete redirection of our product portfolio, giving our focus and resources to those intellectual properties that -- based on market trends, consumer base growth, and emerging technologies -- have the greatest potential to deliver a significant return on investment," continued Caparro. "As part of this redirection, we're assessing the continued value that certain non-core assets bring to the Company, and anticipate divestitures that will further focus our product mix and strengthen our balance sheet."
Atari expects a full year's net revenue to be in between $413 million and $423 million by March 31, 2005, the end of the fiscal year.