Activision Posts Better-Than-Expected Second-Quarter 2002 Results; 2002-'03 Guidance Increased17 Oct, 2001 By: Hive News
Activision Inc. announced better than expected financial results Wednesday for the second fiscal quarter, and record results for the six-month period endedSept. 30, 2001.
Net revenues were $139.6 million as compared to net revenues of $144.4 million reported for the second quarter last fiscal year. Net income for the second fiscal quarter was $2.2 million or $0.06 per diluted share, compared with net income of $4.3 million, or $0.17 per diluted share, reported for the same period last year. The company's second quarter 2002 per diluted share results were $0.05 ahead of the consensus of analyst expectations asreported by First Call.
The company reported record results for the six-month period ended Sept. 30, 2001. Net revenues were $250.2 million, 9% greater than netrevenues of $228.9 million reported for the six-month period last fiscal year.Net income for the six-month period was $2.2 million, or $0.06 per share, compared with net loss of $873 thousand, or $0.04 loss per share, reported for the same period last year.
Activision also announced that the company is increasing its fiscal year2002 earnings per share guidance from $0.87 to $1.00. The new guidance represents a 33% increase in earnings over the prior year. The company isalso increasing its revenue guidance from $620 million to $680 million and its fiscal year 2003 revenue guidance from $750 million to $800 million and its earnings per share guidance by $0.14 from $1.11 to $1.25.
Robert A. Kotick, chairman and c.e.o. of Activision, said, "Our results forthe first half of the fiscal year continued a trend of solid EPS growth, reflecting our commitment to achieving consistent financial performance. The diversity of our product portfolio, coupled with our multi-platform strategy and the ability of our employees to successfully execute in markets around the world, allowed us to achieve record financial results. These results indicate that our business strategies are on track, allowing us to sustainrecord-setting momentum."
"We remain confident that our careful planning, strong balance sheet, leading brand portfolio and commitment to expanding operating margins will continue to provide us with the flexibility to navigate market conditions even during challenging macro-economic circumstances," Kotick added. "We areencouraged by our sales figures and to date, we have not experienced any majorchanges in retail ordering for our products. We have an exceptionally strong slate for the second half of the year and believe that we are well on our way to achieving our upwardly revised fiscal year-end targets."
Activision's quarterly results were driven in part by new titles for the Game Boy Advance, Nintendo 64 and PlayStation game console. The company continued to have top titles across multiple platforms during July and August.
The company's momentum was fueled by strong demand for its games, includingTony Hawk's Pro Skater 2, Mat Hoffman's Pro BMX and World's Scariest Police Chases for the PlayStation, Tony Hawk's Pro Skater 2, Spider-Man: Mysterio's Menance, X-Men: Reign of Apocalypse and Bomberman Tournament for the Game Boy Advance andTony Hawk's Pro Skater 2 for the Nintendo 64.
On Oct. 3, Activision announced that the company acquired Treyarch Invention, LLC., a leading console software developer with a focus on action and action sports video games. The acquisition further enablesActivision to implement its multi-platform development strategy by bolsteringthe company's internal product development capabilities for thenext-generation console systems, and strengthens Activision's position in theaction and action sports genres, the company said in a press release.
Activision's upcoming holiday game slate includes Tony Hawk's Pro Skater 3 for the PlayStation 2, GameCube, PlayStation and Game Boy Color; Return to Castle Wolfenstein and Star Trek: Armada II for the PC; Tony Hawk's Pro Skater 2x for the Xbox videogame console; Shaun Palmer's Pro Snowboarder for the PlayStation 2 andGame Boy Advance; Supercar Street Challenge for the PlayStation 2 and PC; Spider-Man 2 Enter: Electro for the PlayStation; and Jackie Chan Adventures and Mat Hoffman Pro BMX for the Game Boy Advance.