This excerpt taken from the ATVI 8-K filed May 3, 2007.
NET REVENUES AND PROVIDES UPDATE ON OPTION REVIEW
Santa Monica, CA May 3, 2007 Activision, Inc. (Nasdaq: ATVI) today announced record preliminary net revenues for the fourth quarter and fiscal year ended March 31, 2007. The companys net revenues should be considered preliminary until Activision files its quarterly reports on Form 10-Q for the second and third fiscal 2007 quarters and annual report on Form 10-K for the fiscal year 2007.
For the fiscal year, Activision expects to report record net revenues of $1.51 billion, as compared to net revenues of $1.47 billion for the fiscal year ended March 31, 2006 and the companys outlook of $1.40 billion. These results mark 15 consecutive years of revenue growth for Activision and were driven by better-than-expected consumer response to the companys titles and the strength of the software market overall.
Robert Kotick, Chairman and CEO, commented, Fiscal 2007 net revenues are expected to be the highest in Activisions history. Our results were driven by our proven properties Call of Duty® 3, Marvel: Ultimate Alliance and Tony Hawks Project 8; our successful integration of the RedOctane business and expansion of the Guitar Hero franchise globally; our early leadership position on the next-gen consoles; and the strength of our distribution business. We ended fiscal 2007 as the #2 U.S. third-party publisher, grew our market share in the U.S. and had two of the top 10 best selling U.S. titles, according to The NPD Group.
For the fiscal fourth quarter, the company expects to report record net revenues of $313 million, as compared to $188 million for the fourth quarter of last fiscal year and the companys prior outlook of $200 million. The companys fiscal fourth quarter
revenues were fueled by Guitar Hero II and Call of Duty 3, as well as better-than-expected performance of the companys distribution business due to the European launch of the PLAYSTATION® 3.
As of today, Activision is not in a position to provide preliminary GAAP earnings per share as it has not yet determined the companys fiscal 2007 tax rate, which will be impacted by expenses related to review of its stock option grant practices. As previously announced, the company believes that its fiscal fourth quarter results will be significantly impacted by higher legal expenses and professional fees relating primarily to its internal review of historical stock option practices, including the special sub-committee review, Nasdaq proceedings, informal SEC inquiry and derivative litigation.