Activision Quarterly Loss Widens, Full Year Sales Guidance Tops Estimates

| About: Activision Blizzard, (ATVI)

After Thursday's close, video game maker Activision Inc. reported an increased net loss in its latest quarter (4Q07), but increased revenue guidance to above Street expectations. The company reported a preliminary net loss of $14.4 million ($0.05/share), vs. a loss of $0.03 cents a share in the year-earlier period. Excluding stock-options related charges, EPS was -$0.04. The company is currently delinquent in its regulatory filings due to options backdating misconduct. Revenue jumped 66% to $313 million. Thomson Financial consensus estimates were for EPS of -$0.02 on sales of $305.4 million. Looking ahead to its next fiscal year (2008), Activision expects its operating income to more than atvidouble, with EPS coming in at $0.55 before expenses, or $0.45 after, on revenue of $1.8 billion. Consensus estimates had been for EPS of $0.55 on sales of $1.72 billion. Shares fell $0.20, or 1.01%, to $19.59 in after-hours action.

Sources: Activision F4Q07 (Qtr End 3/31/07) Earnings Call Transcript, Press Release, MarketWatch,, AP, Reuters
Commentary: Activision: Stock Slips Despite Expected Huge FY Q4 Revenue BeatThe Impact Of Stock Options Backdating On Corporate CashCramer's Take on ATVI
Stocks/ETFs to watch: Activision (NASDAQ:ATVI). Competitors: Electronic Arts (ERTS), Midway Games (MWY), Take-Two Interactive Software (NASDAQ:TTWO), THQ Inc. (THQI)
Related: ATVI Investor Relations

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Tagged: , Multimedia & Graphics Software, Earnings
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