Atari not in a very healthy condition

Atari not in a very healthy condition

The original granddad of video gaming consoles, Atari is in a bad shape. The company has somewhat confirmed that the future is scary considering the company slid into the red with their third quarter results.

Atari reported sales of $100.8 million in the last quarter of 2005, which is down from sales of $156.4 million a year previously. This saw the company make losses of $4.8 million, from a profit of $19.6 million in the previous year.

Sales for the company has fallen more than 50 per cent year on year to just $163.4 million. Even worse is the financial condition Atari is in. the company is in default on a variety of covenants related to its credit facility with HSBC. HSBC has now refused to extend further credit to the company.

Atari is now looking at various options to continue to remain in the business.