Atari Loses $17.6 Million in 3rd (Dec.10,1993)

From: Atari SIG (xx004@cleveland.Freenet.Edu)
Date: 02/20/94-12:11:33 PM Z

From: xx004@cleveland.Freenet.Edu (Atari SIG)
Subject: Atari Loses $17.6 Million in 3rd (Dec.10,1993)
Date: Sun Feb 20 12:11:33 1994

                            SILICON TIMES REPORT
   December 10, 1993                                             No. 9.50

            ** Atari's Loses $17.6 Million in Third Quarter **

    Atari Corp. reported Thursday a third- quarter loss of $17.6 million,
 compared to earnings of $1.9 million, or 3 cents a share, in the year-
 ago quarter.

    Revenues for the video-game company, which recently released its
 leading-edge Jaguar game system, were off sharply to $4.4 million,
 compared with $34.5 million in the 1992 quarter.

    Atari said the loss was substantially larger than expected, primarily
 due to write-offs of $7.5 million of inventory of personal computers and
 older video game products. It also incurred restructuring costs of $6.4
 million from the wind-down of Australian operations and the decline in
 value of company-owned real estate in Europe.

    Sam Tramiel, president, said the company is in the process of comp-
 leting its transition from older technology consisting principally of
 16-bit personal computers and 8-bit video game systems to the 64-bit
 Jaguar, which began shipping last month.

    "While we are highly encouraged by the early sales of Jaguar, we do
 not expect to achieve profitability until at least such time as ship-
 ments of Jaguar are made in substantial volume," Tramiel said.

    The executive also said the company was working to resolve start-up
 production and supply problems which led to delays in production and
 shipment of Jaguar. He estimated the company will ship approximately 20,
 000 Jaguar systems during the fourth quarter and 500,000 during 1994.

    Atari originally planned to ship 50,000 Jaguars to stores in the New
 York and San Francisco areas before Christmas, then stage a national
 rollout in January.

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