Activision (ATVI) - Get Report offered investors a mixed bag late Wednesday, giving upbeat news on revenue expectations amid a continuing overhang of its stock-options review.

The video game maker said second-quarter revenue came in at $188.2 million, 45% more than its prior projection of $130 million, due to the strong performance of its product portfolio, improving market conditions and the strength of its distribution and affiliate business.

However, the company said it wouldn't be able to finalize second-quarter results until a subcommittee of its board completes an internal review of its historical stock option practices and the company can determine its impact on results.

Activision also boosted its revenue outlook for the full fiscal year to $1.15 billioin from $1.075 billion, based on the better-than-expected second quarter and the third-quarter revenue outlook for its distribution business.

However, the company said it believes the increase in its third quarter and full-year revenue outlook will be offset by higher legal expenses relating primarily to its internal review of historical stock option practices, including expenses relating to the previously announced informal

Securities and Exchange Commission

inquiry and derivative litigation, and the impact of the delayed release of

Sony's

(SNE) - Get Report

PlayStation3 console in Europe until March 2007.

The company expects that the majority of the impact will occur in its fiscal third quarter.

Activision also reaffirmed its fiscal year 2008 net revenue outlook, which is expected to exceed $1.6 billion.

Based on the current status of its sub-committee's review, Activision does not expect that it will be in a position to file its 10-Q for the quarter ended Sept. 30 in a timely manner. In that event, the company would not be in compliance for continued listing of its shares on the Nasdaq Global Select Market. The company plans to become current in its periodic reports as soon as practicable following the completion of the sub-committee's review.

Investors seemed to focus on the positive in after-hours trading; the stock was recently up $1.23, or 8.6%, to $15.50.