Activision loss widens in Q4
EmptyNEW YORK -- Video game maker Activision Inc. reported a bigger fiscal fourth-quarter loss Thursday, but increased its revenue projection for its new fiscal year well ahead of Wall Street estimates.
The company posted a quarterly loss of $14.4 million, compared with a loss of $9.1 million in the year-ago period.
Revenue rose 66% to $313 million in line with updated guidance at the beginning of the month, when Activision had boosted its quarterly revenue projection from $200 million thanks to solid sales for popular titles, such as "Guitar Hero" and "Call of Duty 3."
Before the earnings report, Activision shares closed up 1.8% at $19.79. Over the past year, the stock has traded between $10.47 and $21.43.
Earlier this month, Activision shares dropped 7.7% in one day after mixed reviews for its "Spider-Man 3" game.
The company also produced games tied to other big movie releases this summer, including "Shrek 3" and "Transformers."
"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," said chairman and CEO Robert Kotick in a statement. "We expect fiscal 2008 to be our largest and most profitable year ever."
For the new fiscal year, Activision predicted $1.8 billion in revenue, up from its previous guidance of more than $1.6 billion, adding that operating income will grow by more than 100% over the just-ended fiscal year.
The video game company also said Thursday it will "shortly be in a position" to file amended reports for the quarter ended June 30, 2006 and reports two other quarters of that year. This will bring it up to date in terms of its reporting obligations and restore compliance with Nasdaq listing requirements.