Activision Blizzard (ATVI)

Activision Reports Fiscal Year 2007 Earnings Results

Additionally, the company has updated its preliminary financial results for the nine months ended December 31, 2006.   The company’s previous preliminary earnings per diluted share estimate for the nine months ended December 31, 2006 was $0.30 including equity-based compensation expense.  Excluding the impact of equity-based compensation expense, the company’s previous preliminary earnings per diluted share for the nine months were $0.33.

As a result of updating its financial statements for charges related to its review of historical stock option practices, and subsequent events adjustments primarily related to a change in the company’s effective tax rate, the company’s updated nine month earnings per diluted share, including equity-based compensation expense, increased to $0.33.  Excluding the impact of equity-based compensation expense, the company’s updated nine month earnings per diluted share were $0.37.

Robert Kotick, Chairman and CEO of Activision, Inc. commented, “Activision’s fiscal year 2007 net revenues, which were the highest in the company’s history, totaled $1.5 billion, marking 15 consecutive years of revenue growth.  We delivered solid results for the fourth quarter driven by the success of Guitar Hero II™ and Call of Duty® 3, as well as better than expected performance of the company’s distribution business.  Our balance sheet remains one of the strongest in the industry with nearly $1 billion in cash and short-term investments and $1.4 billion in shareholders’ equity.”

“We expect fiscal 2008 to be our largest and most profitable year ever.  The combination of our first quarter slate and superb release schedule for the balance of the year, Guitar Hero’s rapid rise as a popular cultural phenomenon and our solid leadership position on all of the major gaming platforms, should provide us with a competitive advantage as we enter the growth phase of the new hardware cycle.  We remain focused on expanding operating margins by growing our balanced franchise portfolio, increasing our international publishing capabilities and continuing to improve operational efficiencies worldwide,” Kotick added.