Activison Announce 2 Quarter Earnings

Ativision, today announced financial results for the second fiscal quarter ended September 30, 2005.

Net revenues were $222.5 million, an increase of $22.5 million from the company’s prior outlook of $200 million. Net revenues for the second quarter of last fiscal year were $310.6 million. Net loss for the second fiscal quarter was $13.2 million, as compared with a net income for the second fiscal quarter last year of $25.5 million. Loss per share was $0.05, which is $0.02 better than the company’s prior outlook of a loss per share of $0.07, as compared with earnings per diluted share of $0.09 reported for the same period last year.

Net revenues for the six-month period ended September 30, 2005, were $463.6 million, as compared to net revenues of $521.9 million reported for the six-month period of last fiscal year. Net loss for the six-month period was $16.8 million, or a loss per share of $0.06, as compared with net income of $37.5 million, or earnings per diluted share of $0.14, reported for the same period last year.

Robert A. Kotick, Chairman and CEO of Activision, stated, [i]”Our second quarter revenues and earnings exceeded our expectations, despite having difficult year-over-year comparables. To date, seven of our games have shipped more than one million units each. We remain focused on big propositions and in the third quarter will release the strongest holiday slate in our history. We are optimistic about our holiday titles, although we remain cautious of the many variables that can affect the holiday selling season and our own performance. As we look toward the future, we will continue to leverage our expanding portfolio of franchises and world class development capabilities to strengthen our global competitive position.”

Kotick continued, “We are excited about the long-term opportunities that will result from the next-generation consoles and handheld platforms. These new platforms combined with the ever increasing installed base of current- generation console hardware and our strong portfolio of brands should enable us to continue to take advantage of the positive market fundamentals over the long-term.”[/i]