jvance@bonnie.ics.uci.edu (Joachim Patrick Vance) (11/17/89)
This is HOT off the press. I thought everyone on the Net might like
to know.
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OTC 11/15 0956 ATARI POSTS LOSS OF $5.4 MILLION IN THIRD QUARTER
SUNNYVALE, CA (NOV. 15) PR NEWSWIRE - Atari Corporation (AMEX: ATC) reported
the results of operations for the third quarter ended Sept. 30, 1989.
Net sales for the quarter were $81.4 million compared to $98.8 million for
the like quarter last year. The net loss was $5.4 million compared to net
income of $.9 million. Net sales for the nine months were $253 million
compared to $300 million for the like period last year. There was a net loss
of $1.8 million compared to a net income of $12.1 million for the like nine
months last year.
Sam Tramiel, president and chief executive officer, said "This has been an
encouraging yet difficult quarter for Atari. Towards the end of the quarter we
began shipping many new products which represent our future. For example, we
started shipping Portfolio, our new hand held MS DOS command compatible
computer, and the Megafile 44, our new removable media hard disk drive. Also,
during the quarter, we began shipping the STE computer, an improved version of
our core ST product. Additionally, during the fourth quarter, we expect to
start shipping Lynx, the new hand held color LCD video game system. However,
to reflect the dramatic drop in component prices, especially semi-conductors
and disk drives, the company has taken a special charge during the quarter of
approximately $10 million in respect of such inventory."
Tramiel also stated, "With the shipment of new products and less volatile
DRAM costs in the fourth quarter, we anticipate normalization of margins as and
when the inventories of older products are sold. Portfolio production is
ramping up now as planned. Initial sales appear consistent with our
expectations."
Atari Corp. is one of the largest companies in the world manufacturing
personal computers and video games systems. Atari headquarters are located in
Sunnyvale.
CONTACT: Greg Pratt of Atari Corp., 408-745-2349
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Joachim
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