Atari financials looking game over
While laying off 40-50 people, Atari, as in Infogrames who are now using the Atari brand, reported sorry fiscal results for the quarter ended December 2005 says GameBiz Daily. In short, the company is posting double net losses for the second quarter. The company blames “a weak holiday season for the industry†and “product launch delays†for the poor performance.
Atari’s nine-month results were equally gloomy. Net loss was $62.8 million, or $0.50 per share, compared to net income of $14.8 million, or $0.12 per share, in the year-earlier period. The company’s Executive VP and Chief Financial Officer resigned today as well.
To top it all off, the company’s credit has been maxed out. Apparently, Atari was “advised by the HSBC Business Credit (USA) Inc. that it is in default on certain covenants under its revolving credit facility and that HSBC will not currently extend further credit.†The company’s CEO remains optimistic, saying how Atari is committed to bringing exciting titles to the PSP & DS.
Developers like Shiny have been working on a 4th Earthworm Jim game for PSP (a 3D platformer with the original game’s feel to it) for 3 months, and now have to look for funding elsewhere. This whole series of events reminds me of how things went down before Acclaim went bankrupt 
