devmod
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May 15, 2006, 6:41 PM
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Activision Record net revenues for year end 2006
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Activision announced record net revenues for the fiscal year ended March 31, 2006. Net revenues for the fiscal year ended March 31, 2006 were $1,468 million, as compared to $1,406 million for the fiscal year ended March 31, 2005. Net income for the fiscal year was $41.9 million, or $0.14 per diluted share, as compared to net income of $138.3 million, or $0.50 per diluted share reported for the last fiscal year.
Net revenues for the fourth quarter ended March 31, 2006 were $188.1 million, as compared to $203.9 million that the company reported for the fourth quarter of the last fiscal year. For the fourth quarter, the company reported a net loss of $9.2 million, or a loss per share of $0.03, as compared to net income of $3.6 million, or earnings per diluted share of $0.01 for the fiscal year 2005 fourth quarter.
Activision announced that it has been awarded the rights to develop and publish interactive entertainment games based on the James Bond license through 2014. Under the terms of the agreement, Activision has obtained the worldwide rights to develop games for all current and next-generation consoles, the PC and hand-held platforms for the James Bond license. The license grants Activision the right to develop and publish games based on subsequent movies, as well as non-movie games.
Since the initial release of Dr. No in 1962, James Bond films have grossed more than $3.6 billion theatricall! y worldwide, and approximately 30 million units of video games based on the world of James Bond have been sold to date. Bond is one of the most successful franchises in film history and continues to have popular global appeal.
During the fiscal year, Activision's game slate was based on such franchises as Call of Duty(TM), DOOM(R), QUAKE(R), Shrek, Spider-Man, True Crime, Tony Hawk, World Series of Poker(R) and X-Men(R).
During the fiscal year, Activision signed four exclusive long-term licensing agreements and acquired two development studios. These initiatives will allow the company to plan its game slate three to five years in advance and make prudent investments that may facilitate future growth.
* Activision expanded its alliance with Marvel Enterprises for the
Spider-Man and X-Men(TM) franchises and its agreement with
Spider-Man Merchandising L.P. and Sony Pictures Consumer Products Inc.,
to extend its worldwide publishing rights to the phenomenally
successful Spider-Man(R) motion pictures through 2017. To date, games
based on the Spider-Man and X-Men franchises have generated more than
$785 million in video game sales worldwide.
* Activision signed a multi-year agreement with DreamWorks Animation for
the exclusive video game rights to four upcoming feature films -- "Bee
Movie," "Kung Fu Panda," "Rex Havoc" and "How to Train Your Dragon."
The deal also extended its rights beyond "Shrek 3" to include potential
future films in the "Shrek" franchise. The company's alliance with
DreamWorks has resulted in more than $300 million in video game sales
worldwide.
* Activision entered into an agreement with The Hasbro Properties Group
to develop console, handheld and PC games based on Hasbro's renowned
Transformers brand. Transformers has been one of the best-selling
boys' action brands in a wide-range of categories, from toys to
publishing to apparel, since its launch as a global property in 1984.
* Activision strengthened its internal development capabilities with two
game developer acquisitions -- Toys For Bob, Inc. and Beenox, Inc.
Toys For Bob created Madagascar(TM), which was based on DreamWorks
Animation's feature film and ended calendar 2005 as the #1 best-selling
children's movie game in the U.S. Beenox provided us with a foothold
in the Canadian province of Quebec, one of the fastest growing
development talent pools in North America.
In fiscal 2006, Activision's European publishing net revenues grew 18% to more than $400 million. The company sells direct to retail in the seven largest European markets -- UK, France, Germany, Benelux, Nordic, Spain and Italy and during the fiscal year added Austria. Through its direct model, Activision is increasing volume, market share, retail presence, customer relationships and logistic and financial efficiencies.
For the first quarter of fiscal 2007, Activision will release games based on two highly anticipated summer movie releases, DreamWorks Animation's "Over the Hedge" and Twentieth Century Fox and Marvel Studio's "X-Men: The Last Stand."
For fiscal 2007, Activision expects net revenues of $1.025 billion and earnings per diluted share of $0.10, including the impact of adopting FAS 123(R), which relates to the expensing of stock options and other share-based payments. Excluding the impact of FAS 123(R), the company e! xpects earnings per diluted share of $0.15. This is consistent with the company's previously provided outlook.
For the first quarter of the fiscal year 2007, the company expects net revenues of $145 million and a loss per share of $0.11, including the impact of adopting FAS 123(R). The company's loss per share outlook for the first quarter excluding the impact of FAS 123(R) is expected to be $0.10. Activision also reaffirmed its fiscal year 2008
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