Path: utzoo!attcan!uunet!portal!atari!good
From: good@atari.UUCP (Roy Good)
Newsgroups: comp.sys.atari.st
Subject: Atari 3Q88
Keywords: The facts...
Message-ID: <1234@atari.UUCP>
Date: 16 Nov 88 19:07:38 GMT
Organization: Atari Corp., Sunnyvale CA
Lines: 37

As I promised, here are Atari's results for 3rd. quarter, released 11/14/88:

Figures for 3Q88 [3Q87]
		Net sales	Operating income	Net income
Computers/Video	97.0  [80.4]	11.9   [15.0]		
Federated 	56.9		<6.7>
Consolidated	153.9 [80.4]	5.2    [15.0]		0.9 [9.0]
Net income per share: 0.02 [0.17]

Figures for 1-3Q88 [1-3Q87]
		Net sales	Operating income	Net income
Computers/Video	296.3 [216.2]	44.3   [40.7]
Federated 	191.5		<20.1>
Consolidated	487.8 [216.2]	24.2   [40.7]		12.1 [38.7]
Net income per share: 0.21 [0.67]

Extracting from Sam Tramiel's statement:

Growth continues to be constrained by high prices and shortage of DRAMs
Margins negatively impacted by adverse exchange rates and high component
costs.
A recently signed contract with a major DRAM supplier will assure expanded 
stable supply of components which will enable us to expand our computer
business in 1989.
Overall results of Federated are disappointing. Margins have improved, 
overheads reduced by 40% since 1/88. Tradeoff has been sales erosion, which
was anticipated but not to this extent. Aggressive marketing campaign for
4Q88 to be launched. Look forward to much improved 4th quarter.

[I have paraphrased some remarks to reduce typing!]

A PERSONAL (ie non-Atari) note to add: 4th quarter is always strong in 
both markets - and overheads will remain pretty much fixed except for
advertising. So I expect/hope for pick up. And then there'll be all the
new products for early '89!

Roy Good/Atari