Atari S.A. - PONGF stock
OTC Market: PONGF • Industry: Entertainment
Atari S.A. [OTCMkt: PONGF] is a global multiplatform entertainment and licensing firm. It produces, publishes, and distributes interactive entertainment software. The French-based company also develops and deals in compelling video games for a myriad of consoles including iPhones, Android terminals, Microsoft, personal computers, advanced smartphones, tablets, Nintendo and Sony, online, and web. Its product pipeline is advanced under brands such as Asteroids, Missile Command, Centipede, Test Driver, RollerCoaster Tycoon, and Pong. Atari was founded in June 1972 by Ted Dabney and Nolan Bushnell. It was initially known as Infogrames Entertainment S.A. and changed its name in May 2009 to Atari SA. Its shares are listed for trading on the Euronext Paris stock exchange and the U.S. OTC market under the PONGF ticker. The company is headquartered in Paris, France.
Corporate Business Operations
The company and its subsidiaries engages in four core scopes of business: Games, Blockchain Hardware, and Licensing. It has a revenue generation strategy that focuses on the monetization of its portfolio of intellectual property. The strategy also encompasses direct or licensing agreements for the development of hardware, video games, consumer products, and media content at the crossroads of interactive entertainment, Web3, and the digital world. Since its inception, Atari has been instrumental in the scope of arcade games, game consoles, and personal computer industry development. The company has shown commitment by improving gamers’ experience and expanding its pipeline of PC, console, and mobile games. The company manages a portfolio of over 200 games and franchises.
Atari has several subsidiaries including Eden Games, Atari Interactive Inc., and Atari Europe SAS, among others. The firm’s catalog of games is backboned on original franchises (V-Rally, Backyard Sports franchise), Cryptic Studios titles (Champions Online, StarTrek Online), publishing properties (Ghostbusters, The Witcher, The Chronicles of Riddick, Race Pro), international licenses (Dungeons & Dragons, Dragon Ball Z, etc.) and classic games (Asteroids, Missile Command, Pong). It offers Atari VCS, a sleek modern mini PC that delivers an improved experience for gamers and creators. Atari XP publishes collectible physical games, commencing with those that were never released and unique Atari games from the 1970s and 80s era. Atari X was officially launched in May 2022 to facilitate the company’s commitment to blockchain technology and create a strong blockchain ecosystem that smoothly syncs with community, gaming, and utility.
Atari closed a mega acquisition of a dozen retro arcade games, which included the iconic 80s Berzerk and Frenzy, on March 16, 2023. The company intends to upscale the digital and physical distribution of iconic titles, develop new games based on the IP, and source brand and merchandising partnerships. Berzerk has constantly featured in the top 100 list of games.
General Corporate Developments
The company significantly channeled its resources on the transformation of its operations while strategically building a blueprint for the development of its four lines of business for the first half of its 2022 calendar that ended September 30. The company executed its premium games strategy which is based on its own IP, launching three new premium games within the period. The firm focused its licensing activities on developing new licensing verticals targeting established and international brands and new geographies. Atari focused on building the foundation for its Atari X to propel its blockchain footprint. This entailed the formulation of partnerships and collaborations with Web3 partners and successful NFT sales implementation. The company is also considering new hardware development complementary to the Atari VCS under licensing contracts with partners.
Atari generated €4.3M in revenue for the first half of its financial year that ended on September 30. This reflected a 38% decrease from the same period in the preceding year at constant exchange rates. Its games revenue recorded a significant positive FX effect with substantial contributions from new premium games and RCT games. Hardware business exhibited imminent underperformance with a revenue decrease from €2.3M to €0.2M. Licensing revenues decreased by 18% and included ICICB licensing contracts that failed to materialize. The company’s blockchain business revenues bubbled from €0.4M to €0.7M, attributed to the successful NFT sales. A net loss of €5.4M was incurred compared to €3.5M in the same period a year earlier.
Board of Directors and Committees
Wade Rosen, CEO, and Chairman of the Board
- Holds a Bachelor of Business Administration from the University of Denver, and a Master of Business Administration (MBA) from Instituto de Empresa SL
- He has served as Executive Vice President at Scientific Life Solutions, Inc., and as Director at Collagen Solutions PLC., Apto, Inc., and Flagship Biosciences, Inc.
- He has founded several U.S-based private technology companies
Alexandre Zyngier, Non-independent Director, and Member of the Audit Committee
- Has a bachelor’s degree in Chemical Engineering from, the University of Campinas, and a Master of Business Administration in Finance Accounting from, the University of Chicago
- Currently, he is a director of EVO Transportation, Schmitt Industries Inc., and COFINA
- He has massive experience having served in several positions in his career, including Technical Director at Procter & Gamble, consultant for McKinsey & Co., and Portfolio Manager for Alden Global Capital
- Founded Batuta Capital Advisors LLC, which focuses on the management capital intensive businesses.
Other leaders include Jessica Tams, Independent Director and Chairman of the Nomination and Compensation Committee, and Kelly Bianucci, Independent Director, Chairman of the Audit Committee, and Member of the Nomination and Compensation Committee.
Atari has encountered several legal challenges in the course of its operations. The company and Nestle SA, a Swiss food company, settled a lawsuit on January 15, 2018. Atari had filed a suit accusing Nestle of using the former’s hit 1970s video game (Breakout) without authorization to sell Kit Kat bars. The copyright infringement case was dismissed by the Oakland District Court after the parties settled.
On November 4, 2021, a California federal jury delivered judgment in favor of Redbubble in a lawsuit filed against the company by Atari. Atari, in 2018, filed a case against Redbubble citing infringement of its intellectual property rights through the creation, manufacturing, and distribution of counterfeit Atari clothing and printed materials. Redbubble operates an online store platform that allows artists to upload printed designs on apparel, homeware, and other accessories, which are sold via the artist’s storefront.
- ↑ Atari Profile – Markets Insider. Accessed on April 13, 2023.
- ↑ Atari SA Description – Yahoo Finance. Accessed on April 13, 2023.
- ↑ HALF-YEAR FINANCIAL REPORT AS OF SEPTEMBER 30, 2022/Description of the group’s activity, Page 15 – Atari Investors website. Published December 16, 2022.
- ↑ About Atari/Who We Are – Atari website. Read on April 13, 2023.
- ↑ Atari COMPANY DETAILS – CNBC News. Accessed on April 13, 2023.
- ↑ Atari SA/Home – Atari website. Accessed on April 13, 2023.
- ↑ Atari Announces Acquisition of 12 Classic Arcade Properties, Including Berzerk and Frenzy – Yahoo Finance. Published March 17, 2023.
- ↑ HALF-YEAR FINANCIAL REPORT AS AT SEPTEMBER 30, 2022/ General corporate developments, Page 4 – Atari Investors website. Published December 16, 2022.
- ↑ HALF-YEAR FINANCIAL REPORT AS OF SEPTEMBER 30, 2022/ Consolidated Income - Summary, Page 6 – Atari Investors website. Published December 16, 2022.
- ↑ ABOUT ATARI – GOVERNANCE/ Board of Directors and Committees – Atari Investors website. Accessed on April 14, 2023.
- ↑ Nestle, Atari settle lawsuit over Kit Kat campaign – Reuters. Published January 25, 2018.
- ↑ Atari Loses IP Suit Against Online Marketplace – Winston & Strawn. Published November 5, 2021.