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Atari Mania Announced For Release Before End Of 2022

By | 15/09/2022

FY 2022 ANNUAL RESULTS

NEW LEADERSHIP AND RENEWED FOCUS ON


GAMES, HARDWARE, LICENSING AND BLOCKCHAIN

PARIS, French republic (July 27, 2022 – six.
45

pm CET) –

Atari®
— i of the world’s most iconic consumer brands and interactive amusement producers — today published the Group’s consolidated results for the fiscal year concluded March 31, 2022, approved by the Board of Directors during its coming together held on July 22, 2022. Consolidated accounts have been audited by statutory auditors.

FY22 operational highlights

  • Appointment of Wade Rosen as Master Executive Officeholder in April 2021
  • New strategic plan aimed at refocusing Atari on college value-add together premium games
  • Launch of start premium games with a strong pipeline of new games
  • Revised VCS go-to-market and development of a complementary hardware strategy
  • Termination of licensing agreements with CBI and ICICB Group
  • Exit of non-cadre casino activities in Africa

Post-closing events

  • Termination of ATRI Token, planned cosmos of a new token, solely managed by Atari
  • Strengthening of fiscal structure with €12.5M capital increase1
  • Launch of Atari 10, consolidating Atari Blockchain interests into a unified operation
  • Transfer of the list of Atari shares on to Euronext Growth

FY22 fiscal performance summary

  • Revenues for the yr at €14.9M, down 21.2% versus previous twelvemonth
  • Current operating income improvement at -€2.3M (vs -€iii.4M in previous year)
  • Operating income at -€23.0M (vs -€11.6M in previous yr), negatively impacted by €20.7M one-fourth dimension, non-cash items

Wade Rosen, Chairman and Primary Executive Officer commented: “The fiscal performance recorded by the Group this year reflects a new strategic management focused on things disquisitional to Atari’s DNA: making great games with the Atari IP, innovative hardware, and extending the Licensing and Blockchain ecosystems. By exiting non-cadre activities we accept been able to put in place the necessary levers for future growth, profitability, and cash generation.”

IMPLEMENTATION OF THE TURNAROUND STRATEGY

Games
– Atari is building upon the strategy of focusing on premium games with multiple titles based on Atari’s stiff IP. Atari launched the
Atari: Recharged
line-upward of titles, composed of
Asteroids, Missile Control, Black Widow, Centipede, Breakout, Gravitar,
and
Yars’ Revenge
which modernize Atari’southward classic IP for today’s platforms. Upcoming releases include
Atari Mania, the Atari 50

thursday


Anniversary Celebration, Yars Recharged,
and other titles yet to be announced. The
RollerCoaster Tycoon
franchise continues to be a prominent component of the Atari Games portfolio, the license is set for renewal in September 2022, and it is the intention of both parties to go on the licensing agreement under fundamentally similar terms. Too, Atari is in the process of collaborating with Fig Publishing, Inc., part of the Commonwealth ecosystem, to co-produce certain new video games in evolution.

VCS
– Atari completed the review of its become-to-marketplace for Atari VCS, resulting in revised promotion, marketing and PR strategies to eternalize need. This resulted in an impairment on inventories and R&D for a full amount of €9.4M. Atari is actively developing new and complementary hardware that will aggrandize and dramatically increment the cadre functionality of the VCS.

Launch of Atari XP
– Atari’s initiative to bring rare and never officially-released Atari game cartridges to market is an opportunity for Atari to bring high-value, nostalgic and collectible content to the very active customs of hardcore Atari fans, collectors and video games enthusiasts. The showtime cartridge release series to kick off the Atari XP initiative included
Yars’ Return,
Aquaventure, and
Saboteur.

Atari Ten

The Atari X initiative consolidates Atari’south blockchain interests into a unified operation that is wholly controlled past Atari. The initiative will drive the development of a robust blockchain ecosystem that intertwines gaming, utility, and community. In announcing Atari X, Atari reaffirms its delivery to blockchain and its belief that blockchain is an of import element of Atari’southward business organization and strategy.

BREAKDOWN OF REVENUES Past LINES OF Business

Atari FY22 revenues stood at €14.9M compared to €18.9M in the previous year (21.2% subtract at current substitution rates and 21.five% at constant commutation rates):

  • Games (38% of revenues): the thirty% decrease in Games revenues is the result of a renewed focus on profitability and related marketing expenses in Atari’s free-to-play game catalog, and a strategic pivot to premium game development. New games launched by Atari during the second half of the yr contributed positively to revenue.
  • Licensing (viii% of revenues): Licensing revenues are down 84% year-on-yr. The driblet is driven by a new strategic partnership selection process, which seeks to ameliorate align partners with the overall Atari strategy and foreclose hereafter impairments on previously booked licensing revenue. Additionally, successful multi-year licenses that had their acquirement booked in previous financial years go on to provide significant greenbacks flow going forward.
  • Hardware (21% of revenues): Hardware revenues are up by 9.viii% at €iii.1M for the year, as a outcome of a full yr of revenue contribution from the VCS.
  • Blockchain (33% of revenues): Precipitous increase in Blockchain revenues to €4.9M, reflecting the contribution from NFT sales under licensing agreements with partners such as Zed Run and Everyrealm, and from the sale of parcels of land in The Sandbox.

CONSOLIDATED INCOME STATEMENT SUMMARY

Gross margin improved from lxx.7% to 77.1% of revenues, thank you to a favorable mix of higher margin Blockchain activity.

Electric current operating income improvement mainly comes from the following elements:

  • R&D expenses, at €7.5M (vs €7.9M) are at 50% of revenues, demonstrating Atari’s continued investments in new premium games evolution.
  • Marketing and Sales expenses totaled €1.2M, compared with €2.6M in the previous year, a reduction in line with Atari’due south efforts to amend profitability and eliminate unprofitable user acquisition spending on freemium games.
  • Decrease in Full general and Administrative expenses from €6.3M to €v.1M this yr is related to the discontinuation of African entities and related costs.

Other income and expenses came in at -€20.7 Chiliad, equanimous primarily of onetime, not-greenbacks expenses. This includes notably a €9.7M write-down in receivables from licensee ICICB, a €9.4M impairment on VCS, and a €1.1M damage on select gratuitous-to-play games.

Equally a result, Operating Income for the yr catastrophe March 31, 2022 came to -€23.0M, compared with -€11.6M for the year catastrophe March 31, 2021.

Balance Sail SUMMARY

Consolidated shareholders’ equity totaled €four.4M on March 31, 2022, compared with €24.2M on March 31, 2021. Non-current liabilities increased from €2.3M to €viii.0M, due to shareholders loans granted during the yr.

CASH Flow Argument SUMMARY

Internet change in greenbacks for the menstruation was negative at -€one.8M, due to the subtract of the action and €iv.3M of investments related to R&D costs for new game development. Financing activities generated €7.6M include €2.4M from the exercising of stock-options, and €5.0M from shareholders’ loans. Net greenbacks position at the stop of the year does not accept into account proceeds raised in context of the capital letter increment completed on Apr 1, 2022.


STRATEGY AND OUTLOOK

Atari’s renewed strategic ambition is to extend Atari’south ecosystem and bring joyful experiences via sustained cosmos, across the following avenues:

  • Gaming —
    A return to Atari’south roots in game development and publishing, with a dynamic pipeline of new releases of premium games, leveraging a large catalog of intellectual property;
  • Hardware —
    Creating innovative and best-in-course hardware systems. Going forward hardware creation volition be focused around manufacture subsets (e.thousand. retro gaming) where Atari has natural advantages and can constitute a ascendant market position;
  • Licensing —
    Partnering with well-respected and dearest international brands to deliver innovative consumer products and services beyond a range of industries that are outside of Atari’s core competencies;
  • Blockchain —
    Development of Atari’s ecosystem in Web3 which includes, but is not limited to, a new proprietary token, blockchain gaming, proprietary NFT projects, Metaverse content, and partnerships with other leading Web3 communities. In this context, Atari made the decision to suspend the spin-off project of its Blockchain sectionalization, which had been previously announced in 2021.

In the normal course of business, Atari is continually negotiating potential acquisitions and licensing transactions to acquire retro games.

GOVERNANCE

Atari is pleased to announce the date of Ms. Jessica Tams, as an independent director, which volition be submitted to shareholders at the Full general Meeting on September 27, 2022, in replacement of Ms. Alyssa Padia Walles, who retired from the Lath subsequently nine years of service.

Jessica Tams began her career every bit a Software Engineer and was a Producer on the launch of Xbox Live Arcade before founding the Casual Games Association in 2005. Ms. Tams is a Strategic Advisor for Manga Productions, a subsidiary of Misk Foundation, a Strategic Counselor for Arrivant, and a General Partner for Astra Game Ventures. Jessica Tams is a graduate of Utah Land University with degrees in Mathematics, Physics, and Computer science.

The Lath of Directors will be made of four members. 50% of directors are independent, and women represent fifty% of the board members.

ANNUAL GENERAL MEETING

The Shareholders’ Annual Meeting is scheduled to be held on September 27, 2022 and will be convened shortly.

2021-2022 UNIVERSAL REGISTRATION Document


The 2021-2022 Universal Registration Certificate has been filed today with the Autorité des marchés financiers (AMF) and fabricated bachelor to the public on the Atari financial website.

ABOUT ATARI

Atari is an interactive amusement visitor and an iconic gaming industry brand that transcends generations and audiences. The visitor is globally recognized for its multi-platform, interactive amusement and licensed products. Atari owns and/or manages a portfolio of more than 200 unique games and franchises, including earth-renowned brands like
Asteroids®,
Centipede®,
Missile Control®,
Pong®, and
RollerCoaster Tycoon®. Atari has offices in New York and Paris. Visit the states online at
world wide web.Atari.com.

Atari shares are listed in France on Euronext Growth Paris (ISIN Code FR0010478248, Ticker ALATA) and eligible for NASDAQ International plan (OTC Compartment PONGF).

©2022 Atari Interactive, Inc. Atari wordmark and logo are trademarks owned by Atari Interactive, Inc.

CONTACTS

Atari – Investor Relations
Tel + 33 i 83 64 61 57 –
investisseur@atari-sa.com

|

www.atari.com/news/

Calyptus – Marie Calleux
Tel + 33 1 53 65 68 68 –
atari@calyptus.ne
t

Listing Sponsor- Euroland
Tel +33 1 44 70 20 84
Julia Bridger –
jbridger@elcorp.com

APPENDIX

Consolidated P&L

Balance Sheet

Cash-flow statement

DISCLAIMER

This press release contains sure non-factual elements, including merely non restricted to sure statements concerning its future results and other future events. These statements are based on the current vision and assumptions of Atari’s leadership team. They include various known and unknown uncertainties and risks that could result in fabric differences in relation to the expected results, profitability and events. In addition, Atari, its shareholders and its respective affiliates, directors, executives, advisors and employees take not checked the accuracy of and make no representations or warranties apropos the statistical or frontward-looking information independent in this press release that is taken from or derived from third-party sources or industry publications. If applicable, these statistical data and forward-looking data are used in this printing release exclusively for information.


ane
Completion of the capital increase was announced on March 30, 2022 and the settlement occurred on April i, 2022. This capital increment is therefore not taken into account in March 31, 2022 almanac results.

  • ATARI_FY 2021-2022 Annual Results_20220727_EN

Source: https://www.globenewswire.com/en/news-release/2022/07/27/2487176/0/en/ATARI-FY-2022-ANNUAL-RESULTS.html