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.
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