Activision Loss Widens
Video game maker Activision (ATVI) on Thursday reported a wider-than-expected quarterly loss, but boosted revenue guidance for the coming quarter.
The company reported a net loss of $14.4 million, or 5 cents a share, for its fiscal fourth quarter ended March 31, compared to a net loss of $9.1 million, or 3 cents a share, for the year-ago period.
Excluding equity-based compensation expenses, the company reported a loss of 4 cents a share for the quarter. Analysts polled by Thomson Financial were expecting a loss of 2 cents a share.
Net revenue for the quarter was $313 million, compared to $188 million in the same quarter last year. The company had boosted its outlook on May 3, upping its earlier forecast of $200 million.The company announced its earnings after the bell. Shares were down a penny, or 0.3%, to $19.79 in extended trading. For fiscal 2008, Activision increased its net revenue outlook to $1.8 billion, above Wall Street's expectations of $1.72 billion. It expects operating income to more than double the recently ended fiscal year's figure. The company expects earnings of 45 cents a share for the coming year. Excluding the impact of equity-based compensation expenses, the company expects earnings of 55 cents a share, in-line with analysts' expectations. For the first quarter of fiscal 2008, Activision said it expected revenue of $425 million and earnings of 3 cents a share. Analysts are expecting revenue of $350.1 million. Excluding the impact of equity-based compensation expenses, the company expects earnings of 5 cents a share, in line with expectations. Activision said it would release its game, Enemy Territory: Quake Wars, in the second quarter. The company also updated its preliminary financial results for the nine months ended December 31, 2006. Including equity-based compensation expenses, the company declared earnings of 33 cents a share for the period, compared to the 30 cents a share reported earlier. Excluding the impact of equity-based compensation expenses, the company reported nine month earnings of 37 cents a share, compared to the 33 cents a share reported earlier.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV