Atari Revenue Down

Atari today reported that over the past year ending March 31, 2006, it lost $67.1 million. Total revenues for the year were $218.7 million. Both figures are dramatically worse than what the company reported the previous year when Atari posted $407.8 in revenues and walked away with a profit on the year of $5.7 million.

“Fiscal 2006 was a challenging year for the industry,” company CEO Bruno Bonnell said in a statement. “A shortage of new hardware coupled with a softness in consumer demand for current generation games dramatically impacted results. In addition, titles such as The Matrix: Path of Neo and Marc Ecko’s Getting Up: Contents Under Pressure performed below our expectations.”

For the January-March quarter ending March 31, revenue was $54.7 million, compared to $64.4 million in the prior year’s fourth quarter. Net loss for the quarter was $4.3 million versus a loss of $9.1 million a year ago.

In today’s conference call, Bonnell said one approach to reduce expenses will be a head count reduction of 25 percent during the current calendar year. “For your current information,” Bonnell said, “our current head count including Shiny and Reflections studio is 327 people.”