NEWS - Friday, November 4, 2005
Activision Suffers Second Quarter Loss
Activision Posts Second Quarter Loss Company expects to have very successful third quarter. Activison, Inc. announced that despite beating its own revenue expectations for the second fiscal quarter which ended on September 30, 2005, the company posted a loss of $13.2 million for that financial period. The revenues for the second fiscal quarter amounted to $222.5 million which beat the company's own expectations of $200 million in revenues for that period. This is in contrast to the $310.6 million in revenues and $25.5 million in profit that was earned during the same period last fiscal year. For the six month period that ended on September 30, the company earned revenues of $463.6 million, as compared to revenues of $521.9 million reported for the same six-month period of last fiscal year. The net loss for the current fiscal year-to-date amounts to $16.8 million as compared to last year's year-to-date net income of $37.5 million. According to Robert A. Kotick, Chairman and CEO of Activision, the company remains "focused on big propositions and in the third quarter will release the strongest holiday slate in our history." It should be worth noting that many of the company's "heavy hitters" -- such as QUAKE 4, Call of Duty 2, Gun, Tony Hawk's American Wasteland, The Movies, True Crime: New York City -- have been released or will be released in the company's third fiscal quarter. Furthermore, the impending release of the next-generation Xbox 360 gaming console is expected to provide a boost to the company's revenue.Source: http://www.ign.com
