Lt. Commander
Join Date: Dec 2007
Posts: 120
http://www.atari.com/dyncontent/atar...3010_Final.pdf

After reading over that report filed about a month ago it doesn't seem like STO is performing as well as expected.

It looks like they have a decline of revenue of about 60% with exchange rates from the same time last year. It also seems like their credit loan with Bluebay was extended because there was no way they were going to have it by 12/31/2010.

As of right now it seems like Atari has way to much debt compared to its assets and Atari is banking on the success of The Witcher 2 and TDU2. If sales faulter on those games I am afraid of what is to come with STO.

When the loan deadline comes up will those games be able to bank $40 million? They haven't spent the entire loan though so in reality about $30 million but still, can Atari bring that much in?

If anyone else wants to read over the report and discuss it I would love to hear your insight.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 2
12-23-2010, 08:57 PM
I'm not Cryptic's biggest fan but you need to take this post down. This is blatant misinformation you're spreading here - that report says nothing of the kind and in fact talks about how STO and CO are driving their revenues as part of a strategy shift.

Delete this please. You're reading what you want to read, not what it actually says. Your avatar alone destroys any sort of objectivity you may have on this matter, despite your offer to "discuss".
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 3
12-23-2010, 09:03 PM
Quote:
Originally Posted by Sekrit_Agent
I'm not Cryptic's biggest fan but you need to take this post down. This is blatant misinformation you're spreading here - that report says nothing of the kind and in fact talks about how STO and CO are driving their revenues as part of a strategy shift.

Delete this please. You're reading what you want to read, not what it actually says. Your avatar alone destroys any sort of objectivity you may have on this matter, despite your offer to "discuss".
Did you read the report? If they had not of extended the deadline Atari would not have been able to pay BlueBay, they didn't have the money. This also isn't a jab at cryptic specifically, but Atari their owner.

They have been able to reduce their operating debt over the past couple of years but they are operation at a huge loss none the less. Also, what part of what I said was blatant misinformation?

Bluebay extended the loan so Atari didn't dump their shares to raise money but so that Bluebay could have a few more months to sell off their shares of Atari.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 4
12-23-2010, 09:07 PM
If anything, the report indicates the relative strength of Atari's online game offerings in terms of a significant increase in online game revenue vs. the previous fiscal year (40+%). The biggest online game Atari had on the market during that period was STO.

Looks to me like STO is doing exactly what Atari hoped it would do - 1.) Bring in revenue, and 2.) lead their efforts to transition towards primarily online offerings.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 5
12-23-2010, 09:12 PM
Quote:
Originally Posted by krako View Post
If anything, the report indicates the relative strength of Atari's online game offerings in terms of a significant increase in online game revenue vs. the previous fiscal year (40+%). The biggest online game Atari had on the market during that period was STO.

Looks to me like STO is doing exactly what Atari hoped it would do - 1.) Bring in revenue, and 2.) lead their efforts to transition towards primarily online offerings.
This also hedges on the lawsuits against Atari, which don't look promising and the fact that if they cannot cover this debt in 2011 not a whole lot of investors would want to extend money.

I am also entitled to my opinion but honestly wanted other peoples opinions on this as it is my best interest that Atari/Cryptic succeed as they already have my money and a LTS does not good when the game is closed.

Even though they did increase online profits by ~40% but even with that their revenue still dropped around ~$30 million from the same period last year.
Lt. Commander
Join Date: Dec 2007
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# 6
12-23-2010, 09:15 PM
Not a pleasant reading, but since I don't have any financial tie to Atari or its subsidiaries, I couldn't care less. Also most of the points raised have nothing to do with STO.
There is one interesting aspect thou. It indicates that the Online revenue of Q2 averaged around $2.2mil/month. Divide it by $15 and it totals 146k subs max CO+STO combined. However, since the Online section summarizes Subs ($15)+Digital distribution ($15-30+Quarter/Year/Lifer subs)+CStore that calculated 146k figure is far from reality. It is closer to 70-80k average subs CO+STO combined during Q2.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 7
12-23-2010, 09:17 PM
Quote:
Originally Posted by huntman21014 View Post
http://www.atari.com/dyncontent/atar...3010_Final.pdf

After reading over that report filed about a month ago it doesn't seem like STO is performing as well as expected.

It looks like they have a loss of revenue of about 60% with exchange rates. It also seems like their credit loan with Bluebay was extended because there was no way they were going to have it by 12/31/2010.
This is the misinformation part. They may have a cash flow issue but who doesn't in The Great Recession? This does not reflect on STO's performance at all, and your comment about "loss of revenue of about 60%" is clearly in their retail business unit (i.e. not Online where STO resides as clearly stated) and is misleading at best.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 8
12-23-2010, 09:18 PM
The ways you misread that is so long, I don't have the time to cover it all as I'm gonna hit that sack.

But I will discuss two things:
1) Loan extension. You are reading too much into this. Even extremely profitable companies extend loans from time to time. Sometimes it is at the request of the loan holder. They have books to keep too and BlueBay may want that revenue in a quarter when they need it most. So it may have nothing to do with Atari at all.

2) Health of STO. It says that revenue from their online division is up 616.7% compared to the same quarter last year. Since STO didn't exist as a revenue stream at this time last year, it makes me think STO is driving a good chunk of that increase (and Champions Online's move to F2P tells me that sub base was smaller than STO's). That seems to me a good sign Atari won't touch STO for the time being.

Their revenue is up year over year. Looks like things are improving in France.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 9
12-23-2010, 09:21 PM
Quote:
Originally Posted by Pendra37 View Post
Not a pleasant reading, but since I don't have any financial tie to Atari or its subsidiaries, I couldn't care less. Also most of the points raised have nothing to do with STO.
There is one interesting aspect thou. It indicates that the Online revenue of Q2 averaged around $2.2mil/month. Divide it by $15 and it totals 146k subs max CO+STO combined. However, since the Online section summarizes Subs ($15)+Digital distribution ($15-30+Quarter/Year/Lifer subs)+CStore that calculated 146k figure is far from reality. It is closer to 70-80k average subs CO+STO combined during Q2.
Without knowing the breakdown of player subscription types and the breakdown of subscription fee revenue versus C-Store revenue this is impossible to calculate with any sort of accuracy. STO isn't a blockbuster MMO title like WOW or even a single-family-dwelling-buster like EVE - we all have known that for months. Get what you want out of the game and if it ends up shutting down there was nothing you could have done about it anyway
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 10
12-23-2010, 09:23 PM
Quote:
Originally Posted by Pendra37 View Post
Not a pleasant reading, but since I don't have any financial tie to Atari or its subsidiaries, I couldn't care less. Also most of the points raised have nothing to do with STO.
There is one interesting aspect thou. It indicates that the Online revenue of Q2 averaged around $2.2mil/month. Divide it by $15 and it totals 146k subs max CO+STO combined. However, since the Online section summarizes Subs ($15)+Digital distribution ($15-30+Quarter/Year/Lifer subs)+CStore that calculated 146k figure is far from reality. It is closer to 70-80k average subs CO+STO combined during Q2.
That was the part right there that I was referring to future of STO.

In my opinion, BlueBay knew that they didn't have the money to pay them back and extending the deadline allows them time to sell off the assets they own before Atari does to cut their losses.

I just reread my first post and will edit it, I didn't mean they had a 60% loss but that they had a 60% decline in revenue from the same time last year.
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