Atari served with second delisting notice

PALGN News | Downsizing office space, too.

Supposedly, it's often darkest before the dawn. Someone should probably tell Atari that, as they desperately need some good news. Originally being served with a NASDAQ delisting notice last month for failing to lodge financial reports in sufficient time, Gamasutra reports that Atari has now been served with a second delisting notice, this time for failing to file Form 10-Q, a quarterly report for the period ending June 30th, 2007.

Atari has officially stated that they'll use the previously arranged meeting with NASDAQ to settle both matters at once, but their actions suggest quite strongly that all is not entirely well behind the scenes. Independently to the announcement, Atari has also announced that they plan to reduce their New York office floorspace by 50%, taking their rent from US$2.4 to US$1.2 million. The lower rental exposure is to continue until 2011, at which point they expect their floorspace requirements to start to gradually increase again.

The last available financial reports show that Atari lost US$71.3 million for the fiscal year ending March 31st, up from US$69 million in the previous fiscal year. Additionally, the company reduced their employee count by 20% in May. Overall, these actions suggest a company furiously trying to restructure and survive.

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4 Comments

TheAnswer

4 years ago

Ouch! This definately doesnt bode well for Atari, well I should mean the company using the name "Atari". They should realise that "fad" games like Dragon Ball Z, Bey Blade etc will only get you so far. I hope Kane & Lynch can get them some much needed credibility, but I hold my doubts.

ZNMS

4 years ago

That's not cool, if Atari goes under, then which company is going to publish all the Konami games here in Australia?

Basically, that means, no more games from the Castlevania series. David, I would be worried.

4 years ago

Atari is not the only distressed publisher at the moment. Even Atari's parent; Infrograms looks like they are being stalked by some venture capital. Bluebay which is run by Mark Poole and Hugh Willis out of London is buying shares whilst the value is depressed.

Unfortunately having a new investor doesn't mean that they will save Atari. Infrograms may instruct them to continue selling brands & IP (as they have been doing up to now) to return as much cash as possible. I'll wager that Bluebay is holding control and will sell when the market for "next Generation" consoles picks up (hopefully after Christmas). I reckon there are quite a number of film & TV production houses looking at breaking into gaming.

If you guys are willing to pitch in a few bob we could probably buy Atari between us...

ugh the boot

4 years ago

ZNMS wrote

You know what? That's exactly the reason I want Atari to go bankrupt and just piss off....their handling of the Castlevania franchise is one of the most delayed and frustrating things I can think of in my gaming culture!

I hope Atari die and another publisher takes over the handling of Konami games in Australia.....and trust me....Konami will find a publisher! People would be mad not to publish Konami games because they are almost always consistently good and usually sell pretty well.

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