Revenues declined in the second quarter by roughly 25%, coming in at $28.6 million. The operating loss narrowed to $9.6 million, down from $22.1 million year over year. Net loss from continuing operations was $9.5 million ($0.07 per diluted share) versus last year's loss from continuing operations of $22.3 million ($0.18 per diluted share). For the completeists out there, Atari did score an insubstantial net profit after the addition of income from discontinued operations.
Not that it makes any difference. While a reduction in costs and a narrowing of losses are always welcome items, Atari is merely surviving right now. It needs to get back on track and thrive. The publisher hasn't figured out a way to do it, however, and the longer the red ink is spilled, the more I wonder how Atari will effectively compete. It has secured a three-year, $15 million credit facility, but I'm not doing backflips over that news.
I'd be happier to see a strong slate of games. What do you think of when you think Electronic Arts
For Atari to make a name for itself in the brave new world of the three big consoles -- the Sony
This one isn't too difficult -- I can't see Atari's stock as a useful instrument of appreciation for your hard-earned investment dollars. The losses have narrowed, but the speculative nature of this company remains. It needs to figure out a new franchise for itself, one that isn't expensive to develop, and that's a tall order. I have utterly no confidence in the company's long-term future. But I'll say this -- Atari, prove me wrong! I grew up playing games under this brand. I want to eventually eat my words on this subject. For now, though, don't fool around with the stock -- let the traders mess around with this penny equity, you've get better places for your money.
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Fool contributor Steven Mallas owns shares of Activision. As of this writing, he was ranked 1,520 out of 12,508 investors in the CAPS system. Don't know what CAPS is? Check it out. The Fool has a disclosure policy.