On Feb. 8, Atari (NASDAQ:ATAR) released third-quarter earnings for the period ended Dec. 31.

  • Read the full story on Atari here.
  • While Atari's revenue fell by more than 50%, it managed to turn a small profit from continuing operations while increasing margins across the board.
  • Atari is currently unrated in Motley Fool CAPS, our interactive stock database.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$47.3

$100.0

(52.7%)

Income from Continuing Operations

$1.7

($2.3)

N/A

EPS

$0.13

($0.17)

N/A

Diluted Shares

13.5

13.5

0.0%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

42.6%

39.7%

2.9

Operating Margin

3.6%

(2.3%)

5.9

Net Margin

3.6%

(2.4%)

5.9

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$3.6

$3.5

5.1%

Accounts Rec.

$23.2

$31.7

(26.9%)

Inventory

$13.4

$28.9

(53.6%)



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$13.3

$28.0

(52.4%)

Long-Term Debt

N/A

N/A

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights
Atari must be too busy playing games, because it forgot to include a cash flow statement in the press release.

Find out why Fools always follow the money.

Related Companies:

  • Take-Two Interactive (Nasdaq: TTWO)
  • Electronic Arts (NASDAQ:ERTS)
  • Activision (NASDAQ:ATVI)

Related Foolishness:

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