Activision, Inc. (Nasdaq:ATVI) today announced record financial results for the first fiscal quarter ended June 30, 2007.
Net
revenues were $495.5 million, a 163% increase, as compared to net
revenues of $188.1 million reported for the first quarter last fiscal
year. Net income for the first fiscal quarter was $27.8 million, or
$0.09 earnings per diluted share, as compared to a net loss of $18.3
million, or a loss per share of $0.07 reported for the previous first
quarter. Excluding the impact of expenses related to equity-based
compensation, the company reported net income of $32.8 million and
earnings per diluted share of $0.11 for the first quarter. This
compares to a net loss of $14.7 million and loss per share of $0.05,
excluding the impact of expenses related to equity-based compensation
for the first quarter of last fiscal year.
Robert
Kotick, Chairman and CEO of Activision, stated, "During the quarter, we
shipped more than eight million units of new game releases worldwide
and for the first six months of the calendar year, Activision was the
#1 third-party U.S. publisher on the console and handheld platforms. As
a result of our strong performance, we are raising our fiscal year 2008
net revenue and earnings outlook and are increasing our fiscal year
operating margin outlook to a company record"
Kotick
continued, "Our focus on growing our strong franchises and next-
generation console leadership position is yielding superb results. We
intend to continue expanding our franchise portfolio, strengthening our
development capabilities and improving our operating efficiency over
the balance of the fiscal year. We believe this strategy will create
strengths and capabilities that should enable us to continue growing
our revenues, operating margin and earnings per share, as well as
increase our return on invested capital."
Business Highlights
Activision's
record first quarter performance was driven by strong consumer response
to its proven franchises, Guitar Hero II(TM), Spider-Man 3(TM) and
Shrek The Third(TM), as well as its new intellectual property
TRANSFORMERS: The Game, which was released in the U.S. during the
quarter.
According
to The NPD Group, during the quarter, Activision was the #1 U.S.
publisher on both the Xbox 360(TM) video game and entertainment system
and the PlayStation(R) 2 computer entertainment system. The company
also ranked as the #1 third-party publisher on the PLAYSTATION(R) 3
computer entertainment system and the Nintendo platforms in the U.S.
Activision grew its U.S. console and hand-held market share to 16.9%,
as compared with 8.5% over the same period last year.
Other
quarterly business highlights are as follows:
--
Guitar Hero II and Spider-Man 3 were two of the top-three best-selling
titles for the quarter in the U.S., according to The NPD Group. Guitar
Hero II was the #1 best-selling U.S. console game overall, and
Spider-Man 3 was the #3 best-selling U.S. console and handheld game.
--
Shrek The Third was the #1 kid's movie-based title in the U.S. for the
months of May and June combined, according to The NPD Group.
-- In the U.S., Activision was the #1 third-party handheld publisher, according to The NPD Group.
-- Activision's international publishing revenues grew 240% year over year.
--
In Europe, Spider-Man 3 was the #1 best-selling console and handheld
game for the quarter in the U.K., Germany and France, according to
Charttrack and Gfk.
--
On May 11, 2007, Activision completed its acquisition of DemonWare, the
leading provider of network middleware technologies for console and PC
games headquartered in Dublin, Ireland.
For the second quarter, Activision has already shipped
TRANSFORMERS: The Game internationally in connection with the film's
theatrical release and Guitar Hero(TM) Encore: Rocks The 80s(TM) for
the PlayStation 2 computer entertainment system. Activision also
expects to ship Enemy Territory(TM): Quake Wars on the PC.
Company Outlook
Today,
Activision increased its fiscal year 2008 net revenue and earnings per
share outlook. For the full fiscal year, the company expects net
revenues of $1.87 billion and earnings per diluted share of $0.51,
including the impact of equity-based compensation expense, compared to
the company's previous fiscal year outlook of $1.8 billion in net
revenues and earnings per diluted share of $0.45. Excluding the impact
of equity-based compensation expense, the company expects earnings per
diluted share of $0.61.
For
the second quarter, the company expects net revenues of $250 million
and a loss per share of $0.04, including the impact of equity-based
compensation expense. Excluding the impact of equity-based compensation
expense, the company expects a loss per share of $0.03.
Conference Call
Today
at 4:30 p.m. EDT, Activision's management will host a conference call
and Webcast to discuss its first quarter fiscal year 2008 results and
outlook. 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 live Webcast or to listen to the call live by dialing into
(719) 457-2699 in the U.S.
Non-GAAP Financial Measures
Activision
provides net earnings (loss) per share data both including and
excluding the impact of expenses related to stock options, employee
stock purchase plans, restricted stock awards and other share-based
compensation and the associated tax benefits.
Prior
to April 1, 2006, Activision accounted for equity-based compensation
under Accounting Principles Board, Opinion No. 25, "Accounting for
Stock Issued to Employees" ("APB No. 25"). In accordance with APB No.
25 the company historically used the intrinsic value method to account
for equity-based compensation. As of April 1, 2006, the company
accounts for equity-based compensation using the fair value method
under Statement of Financial Accounting Standards No. 123 (revised
2004), "Share Based Payment" ("FAS 123R").
Net
earnings (loss) per share excluding the impact of expenses related to
equity-based compensation is not determined in accordance with
generally accepted accounting principles (GAAP), and the exclusion of
those amounts has the effect of increasing non-GAAP earnings per share
by that same amount per share as compared to GAAP earnings per share
for the period. Activision recognizes that there are limitations
associated with the use of this non-GAAP financial measure as it does
not reflect all of the expenses associated with our results as
determined in accordance with GAAP and may reduce comparability to
other companies that calculate similar non-GAAP measures differently.
Management compensates for the limitations resulting from the exclusion
of expenses related to stock-based compensation by considering the
amount and impact of equity-based compensation expenses separately and
by considering the company's GAAP as well as non-GAAP results and, in
this release, by presenting the most comparable GAAP measure, net
income (loss), directly ahead of non-GAAP net income (loss) in this
release and by providing a reconciliation that shows and describes the
adjustments made in the accompanying tables. Management does not
believe the limitations resulting from this exclusion are material,
particularly when this non-GAAP financial measure is disclosed with its
most comparable GAAP financial measure, net income (loss). Management
believes that the presentation of this non-GAAP financial measure
provides investors with additional useful information to measure the
company's financial performance because it allows for a better
comparison of results in the periods reported herein to those in
historical periods.
This
non-GAAP financial measure should be considered in addition to, not as
a substitute for or superior to, financial measures determined in
accordance with GAAP. Non-GAAP net earnings (loss) do not include
certain expenses required to be recorded in order to present earnings
in accordance with GAAP. This non-GAAP financial measure is not based
on a comprehensive set of accounting rules or principles and the term
non-GAAP net earnings (loss) does not have a standardized meaning.
Therefore, other companies may use the same or similarly named measure
but exclude different items, which may not provide investors a
comparable view of the company's performance in relation to other
companies in the same industry.
SOURCE: Activision, Inc.
Thanks to Palatinus for letting the
Trans-Europe Express group know about the latest batch of Slovakian Transformers toy sightings.
Tesco, Alltoys, Dracik all have Transformers Movie deluxe Bonecrusher, Swindle,
leader Optimus Prime and Megatron in tstock. Tesco & Alltoys are 2200 Skk, Dracik is 1900 Skk (that's a 9 EUR difference). Alltoys alos has many new and 'old-new' TFs in stock including:
Cyb Metroplex,
Cyb Def Scattorshot
Classic minicon 3 packs wave 2 (beasties, fliers, racers)
Classics deluxe OP and Megi (with spinning thingy action) (packed separately)
Classics LOC (Leoprime, Perceptor etc.)
Movie leaders (OP&M)
Movie deluxes (B&S)
Movie Battle Robots game
Movie LOC
Movie FAB Jazz, Ratchet, Brawl
Cyberstompin'
Real Gear Longview (only him)
Target scouts Strongarm, Clocker and Skyblast
The final Japanese Generation One cartoon show, Zone, will final be released on DVD in the UK ... albeit as a bonus on Metrodome's Ultimate Transformers Takara series (a box set of Headmasters, Masterforce and Victory). Here's the full press release:-
| Discuss: 
Simon Furman has updated his blog with two new stories, the first includes the cover to the second Trade Paper Back of Deaths Head, featuring art by Lew Sullivan. You can see the cover 
AcToys originally posted images of the Transformers Encore Convoy figure (the latest Japanese re-issue line), which have now been mirrored by various sites including 
Unfortunately it's bad news on our 
Japanese Toy seller 
Simon Furman has made another update to his Blog, the first concerns the UK Transformers comics by Titan Magazine.
As you may remember, back in April I held a telephone 
