This excerpt taken from the ATVI 8-K filed Aug 5, 2009.
-Board of Directors Increases Companys Stock Repurchase Program to $1.25 Billion-
Santa Monica, CA August 5, 2009 Activision Blizzard, Inc. (Nasdaq: ATVI) today announced better-than-expected financial results for the second quarter 2009.
For the quarter ended June 30, 2009, Activision Blizzards GAAP net revenues were $1,038 million, and its non-GAAP net revenues were $801 million. The companys prior GAAP net revenue outlook for the quarter was $1 billion. On a non-GAAP basis, the companys net revenue outlook was $775 million.
For the quarter ended June 30, 2009, Activision Blizzards GAAP earnings per diluted share was $0.15, and the companys non-GAAP earnings per diluted share was $0.08. The companys prior GAAP earnings per diluted share outlook was $0.10. On a non-GAAP basis, the companys earnings per diluted share outlook was $0.06.
The company reports results on both a GAAP and a non-GAAP basis. Please refer to the tables at the back of this press release for a reconciliation of the companys GAAP and non-GAAP results.
Robert Kotick, CEO of Activision Blizzard, stated, Since our merger one year ago, we have delivered better-than-expected financial performance for four consecutive quarters. Our second quarter overperformance was driven by Activision Publishings PROTOTYPEÔ, Transformers®: Revenge of the Fallen, X-Men Origins: WolverineÔ and the Guitar Hero® and Call of Duty® franchises, as well as Blizzard Entertainment®s World of Warcraft®. During a challenging economic climate, Activision Blizzard grew its quarterly North American and European market share 2.8 points across all platforms to 12.7% from 9.9% for the previous year and was the #1 North American third-party console and handheld publisher for the quarter and first six months of the calendar year, according to the NPD Group, Charttrack and Gfk.
Kotick continued, This fall, we will release our strongest video game slate based on some of the industrys most successful franchises, including Infinity Wards Call of Duty: Modern Warfare® 2, Guitar Hero 5, DJ Hero, Band Hero, Tony Hawk®: RIDE and Bakugan Battle Brawlers. We are in a unique industry position to be able to invest in people, products and resources for the long term without compromising our short-term commitments of earnings growth and margin expansion.
As we prepare for next year, we have moved the expected release dates for two games, Activision Publishings SingularityÔ and Blizzard Entertainments StarCraft® II, into 2010. However, we are increasing our calendar year earnings-per-share GAAP outlook and reaffirming our calendar year earnings-per-share non-GAAP outlook and still expect to deliver record non-GAAP operating margins. Although there is a great deal of economic uncertainty in the global marketplace, we remain focused on the opportunities afforded by our industry and will continue exploring potential new markets and business models that should enable us to continue expanding our operating margins, Kotick added.