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Game Cloud is reporting that Atari's financial woes are continuing: the game publisher could be in serious financial trouble following their Oct-Dec. 2005 financial results. Net income for the time period was $100.8 million, down from $156.4 million for the same period a year ago. Atari suffered a net loss of $4.8 million compared to a profit of $19.6 million for the same period a year ago. The statement read that product delays along with a soft overall video game market contributed to the loss. Also Atari revealed that it had defaulted on loans from the HSBC Business Credit and that the company was not planning on extending Atari furthur credit. Finally the press release revealed that Atari's chief financial officer Diane Baker effective shortly had resigned "to pursue a new opportunity". As a result, Atari admitted, "The uncertainties caused by these conditions raise substantial doubt about the Company's ability to continue as a going concern." Read the rest and find a link to the official press release at Game Cloud. | Source: Game Cloud |
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