Activision Announces First Quarter 2006 Results - 500 Beiträge pro Seite

[der_tellerwaescher]

Activision Announces First Quarter 2006 Results

- Q1 Net Revenues Increase 14% - - To Date Three Games Ship More Than One Million Units - - Company Increases Financial Outlook For Fiscal 2006 -

SANTA MONICA, Calif., July 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Activision, Inc. (Nasdaq: ATVI) today announced financial results for the first fiscal quarter ended June 30, 2005.

Net revenues were a record $241.1 million as compared to net revenues of $211.3 million reported for the first quarter last fiscal year. Net loss for the first fiscal quarter was $3.6 million, as compared with net income of $12.0 million for the previous first quarter. Loss per share was $0.02, as compared with $0.06 earnings per diluted share reported for the same period last year.

Robert A. Kotick, Chairman and CEO of Activision, stated,

[der_tellerwaescher]

Activision Announces First Quarter 2006 Results
- Q1 Net Revenues Increase 14% - - To Date Three Games Ship More Than One Million Units - - Company Increases Financial Outlook For Fiscal 2006 -

SANTA MONICA, Calif., July 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Activision, Inc. (Nasdaq: ATVI) today announced financial results for the first fiscal quarter ended June 30, 2005.

Net revenues were a record $241.1 million as compared to net revenues of $211.3 million reported for the first quarter last fiscal year. Net loss for the first fiscal quarter was $3.6 million, as compared with net income of $12.0 million for the previous first quarter. Loss per share was $0.02, as compared with $0.06 earnings per diluted share reported for the same period last year.

Robert A. Kotick, Chairman and CEO of Activision, stated, "Fiscal 2006 is off to a strong start. To date DOOM 3(TM), Madagascar(TM) and Fantastic 4(TM) each have shipped in excess of one million units. During the quarter, we continued to strengthen our business. With $786 million in cash and short-term investments, one of the industry`s strongest balance sheets and a strong product development slate, we have entered fiscal year 2006 with numerous competitive advantages."

Kotick continued, "We remain focused on our big propositions and intend to continue leveraging our increasing portfolio of franchises. Our production strategy centers around developing games based on proven, predictable brands. This strategy should enable us to grow our revenues, earnings and operating margin as we have over the past five years."

Business Highlights

Activision`s results were driven by strong global consumer response to its new products across all platforms. During the quarter, the company released DOOM 3 for the Xbox(R) video game system, DOOM 3: Resurrection of Evil(TM) for the PC, Madagascar for the PlayStation(R) 2 computer entertainment system, Xbox video game system, Nintendo(R) GameCube(TM), PC, Nintendo Game Boy(R) Advance(TM) and Nintendo DS and Fantastic 4 for the PlayStation 2 computer entertainment system, Xbox video game system, Nintendo GameCube, PC and Nintendo Game Boy Advance. Additionally, Activision shipped LucasArts` Star Wars(R): Episode III Revenge of the Sith(TM) for the PlayStation 2 computer entertainment system and Xbox video game system in Europe.

Other highlights include:

* According to NPD Funworld, DOOM(R) Collector`s Edition was the #1
best-selling video game in the U.S. on the Xbox platform for the month
of April. Additionally, Madagascar was the #1 best-selling children`s
title and the #2 selling game across all platforms for the month of
June.

* On May 3, 2005, Activision announced that it acquired game developer
Toys For Bob. Activision has worked with Toys For Bob since 2002,
most recently on Madagascar, which is based on DreamWorks Animation`s
feature film.

* On May 25, Activision announced that it acquired game developer
Beenox, Inc. The acquisition further bolsters Activision`s internal
development capabilities by providing it with a foothold in the
Canadian province of Quebec, one of the fastest growing development
talent pools in North America.

* On June 9, Activision announced a strategic alliance with Harrah`s
Entertainment, Inc. to develop and publish video games based on the
popular World Series of Poker Tournament.

* On June 16, Activision named Michael Griffith as President and Chief
Executive Officer of Activision Publishing, Inc. In his new role,
Griffith will assume responsibility for Activision Publishing`s
operational management including its studio, publishing and corporate
activities. A 24-year veteran of Procter & Gamble, Griffith brings an
exceptionally well-balanced blend of management leadership and sales
and marketing experience to Activision Publishing.

* Activision previously reported that on July 11, 2003, the Securities
and Exchange Commission commenced a non-public investigation entitled
"In the Matter of Certain Video Game Manufacturers and Distributors".
Activision recently was advised by the staff of the Securities and
Exchange Commission that Activision is no longer a subject of this
investigation and the matter is closed with regard to Activision.

Looking ahead to the second quarter, Activision`s slate will be driven by the U.S. launches of Ultimate Spider-Man(TM) for the PlayStation 2 computer entertainment system, Xbox video game system, Nintendo GameCube, PC, Nintendo Game Boy Advance and Nintendo DS and X-Men Legends II: Rise of Apocalypse(TM) for the PlayStation 2 computer entertainment system, Xbox video game system, Nintendo GameCube and PC; and the worldwide launch of World Series of Poker(R) for the PlayStation 2 computer entertainment system, Xbox video game system, Nintendo GameCube and PSP. Additionally, the company will release Spider-Man 2(TM) the game and Tony Hawk`s Underground 2 Remix in Europe timed to the launch of the PSP.

Company Outlook

Activision increased its financial outlook for fiscal 2006 to $1.47 billion in net revenues and earnings per diluted share of $0.69. For the second quarter of the fiscal year 2006, the company expects net revenues of $200 million and a loss per share of $0.10. For the third quarter, it expects net revenues of $790 million and earnings per diluted share of $0.69. For the fourth quarter, Activision expects net revenues of $240 million and earnings per diluted share of $0.09.

Conference Call

Today at 4:30 p.m. EDT, Activision`s management will host a conference call and Webcast to discuss its fiscal 2006 first quarter results and outlook for the remainder of fiscal 2006. The company welcomes all members of the financial and media communities to visit the "Investor Relations" area of www.activision.com to listen to the conference call via a live Webcast or to listen to the call live by dialing into [phone] in the U.S.

About Activision

Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $1.4 billion for the fiscal year ended March 31, 2005.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Spain, Japan, Australia, Scandinavia and the Netherlands. More information about Activision and its products can be found on the company`s World Wide Web site, which is located at www.activision.com.

Note: The statements made in this press release that are not historical facts are "forward-looking" statements. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The company cautions readers of this press release that a number of important factors could cause Activision`s actual future results to differ materially from those expressed in any such forward-looking statements.

Such factors include, without limitation, product delays, retail acceptance of our products, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities. These important factors and other factors that potentially could affect the company`s financial results are described in our filings with the Securities and Exchange Commission, including the company`s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers of this press release are referred to such filings. The company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the company`s assumptions or otherwise. The company undertakes no obligation to release publicly any revisions to its forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

ACTIVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except earnings per share data)

Quarter ended June 30,
2005 2004


Net revenues $241,093 $211,276
Costs and expenses:
Cost of sales - product costs 136,754 89,088
Cost of sales - software
royalties and amortization 14,576 12,283
Cost of sales - intellectual
property licenses 20,940 17,648
Product development 17,802 21,105
Sales and marketing 46,318 41,734
General and administrative 18,151 13,685
Total operating expenses 254,541 195,543
Operating income (loss) (13,448) 15,733
Investment income, net 7,348 2,112
Income (loss) before provision
(benefit) for income taxes (6,100) 17,845
Provision (benefit) for income taxes (2,515) 5,888
Net income (loss) $(3,585) $11,957


Basic earnings (loss) per share $(0.02) $0.07
Weighted average common shares
outstanding 201,856 183,686


Diluted earnings (loss) per share $(0.02) $0.06
Weighted average common shares
outstanding assuming dilution 201,856 204,539


Share and earnings per share data have been restated to reflect our
four-for-three stock split for shareholders of record as of March 7,
2005, paid March 22, 2005.


ACTIVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31,
2005 2005
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $785,899 $840,864
Accounts receivable, net 94,804 109,144
Inventories 45,136 48,018
Software development 97,825 73,096
Intellectual property licenses 14,336 21,572
Deferred income taxes 8,568 6,760
Other current assets 23,237 23,010
Total current assets 1,069,805 1,122,464
Software development 9,764 18,518
Intellectual property licenses 20,605 14,154
Property and equipment, net 31,911 30,490
Deferred income taxes 35,536 28,041
Other assets 1,299 1,635
Goodwill 98,527 91,661
Total assets $1,267,447 $1,306,963

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Accounts payable $65,447 $108,984
Accrued expenses 88,558 98,067
Total current
liabilities 154,005 207,051
Other liabilities 93 --

Total liabilities 154,098 207,051
Shareholders` equity:
Common stock -- --
Additional paid-in capital 764,560 741,680
Retained earnings 343,029 346,614
Treasury stock -- --
Accumulated other
comprehensive income 7,743 11,618
Unearned compensation (1,983) --
Total shareholders`
equity 1,113,349 1,099,912
Total liabilities
and shareholders`
equity $1,267,447 $1,306,963



ACTIVISION, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION
For the Quarter Ended June 30, 2005 and 2004
(Amounts in thousands)

Percent
Increase
Quarter Ended (Decrease)
June 30, 2005 June 30, 2004
% of % of
Amount Total Amount Total
Geographic Revenue Mix
United States $112,320 47% $125,191 59% -10%
International 128,773 53% 86,085 41% 50%
Total net revenues $241,093 100% $211,276 100% 14%


Activity/Platform Mix
Publishing:
Console $142,362 59% $119,127 56% 20%
Hand-held 25,331 10% 18,430 9% 37%
PC 25,858 11% 24,095 12% 7%
Total publishing $193,551 80% $161,652 77% 20%

Distribution:
Console $38,088 16% $39,194 18% -3%
Hand-held 3,908 2% 3,655 2% 7%
PC 5,546 2% 6,775 3% -18%
Total distribution $47,542 20% $49,624 23% -4%
Total net revenues $241,093 100% $211,276 100% 14%


ACTIVISION, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION
For the Quarter Ended June 30, 2005 and 2004




Quarter Ended Quarter Ended
June 30, 2005 June 30, 2004

Publishing Net Revenues

PC 14% 15%

Console 73% 74%
Sony PlayStation 2 34% 42%
Microsoft Xbox 34% 16%
Nintendo GameCube 5% 15%
Sony PlayStation 0% 1%

Hand-held 13% 11%
Game Boy Advance 8% 11%
Nintendo Dual Screen 3% 0%
PlayStation Portable 2% 0%

Total publishing net revenues 100% 100%

SOURCE Activision, Inc.

Bill Chardavoyne, Chief Financial Officer, [phone],
[e-mail], Kristin Mulvihill Southey, Vice President, Investor
Relations, [phone], [e-mail], or Maryanne Lataif, Vice
President, Corporate Communications, [phone], [e-mail], all of
Activision, Inc.

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