Activision's Q4 numbers down

Publisher posts lower revenues and a net loss for fourth quarter; for the full year, revenues hit new high, while profits shrink by two-thirds.

Activision reported its earnings for its fourth quarter today, and the company's revenues and bottom line failed to live up to its numbers from the same period the year before.

For the three months ended March 31, Activision posted revenues of $188.1 million and a net loss of $9.2 million. Last year, the publisher's fourth-quarter figures showed $203.9 million in revenues and a profit of $3.6 million.

For the full fiscal year, Activision managed to rack up the largest revenues in the company's history, posting total sales of nearly $1.47 billion, compared with almost $1.41 billion the year before. The company also managed to turn a profit for the full 12 months, although a much smaller one than it had enjoyed the previous year. Activision posted $42 million in fiscal year 2006, compared to $138 million for fiscal year 2005.

Activision CEO Robert Kotick explained the slipping numbers by saying the company was starting to feel the impact of the console transition. He put a positive spin on the numbers by pointing to the company's record revenues, noting that they were up for the 14th consecutive year. That streak isn't expected to continue, however. This fiscal year, Activision is projecting revenues to come in at slightly over $1 billion.

As for the current quarter, the publisher is expecting $145 million in revenues (down from last year's first-quarter take of $241 million) and a loss per share of $0.11 (last year Activision's loss-per-share was $0.02).

However, Activision is echoing recent analysts' assessments in suggesting that the console transition will be over next year, after which the company expects the bottom line to improve. For its fiscal year 2008, Activision is projecting a return to record revenues, expecting to rack up more than $1.6 billion.

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31 comments
MagickB3ats
MagickB3ats

Good games please. No more True Crime.

Troy-M
Troy-M

Funny how Q4 and Activision are in the same paraphrased title--at first glance, I thought it was referring to Quake 4 sales and I said to myself "is anyone surprised at all?" Quake 4's multiplayer is HORRIBLE, btw. =P Anywho, get your act together, Activision!

advent6
advent6

Fire some more "little people", who make the little wages; that will help things. I am sure that is what they will do.

samuelroberts
samuelroberts

Thanks for making True Crime half complete, you money laundering windbags! They need a different direction with their superhero games. X-Men Legends just doesn't cut it. Spidey 2, now that was a game.

khggame
khggame

They need to make better games

chrisdojo
chrisdojo

the same news as every other game company.......

azizrulez
azizrulez

pull your socks up and lose the complacency

KayDash
KayDash

Quake 4!!! They need to release a quake 4 expansion pack. Already, ETQW is going to boost their sales.

NightRain
NightRain

Besides Call Of Duty 2... what was the last good Activision game? ... There you go.

kingofps3
kingofps3

1 billion !!!!!!!!!!!!!!!!!!!!!!!!!!!!

abe2cool4u
abe2cool4u

U might do better if u stop realeasin ur same games yr after yr cough*tony hawk*cough, and don't get me rong tony hawk games are good, once every 3 yrs not yr single yr!

ebonyflame
ebonyflame

Here's a clue Activision, let the true crime games die as they have always been crap with great advertising.

jahnee
jahnee

some cod3 witht the unreal engine 3 will do the trick, and than also release it on ps3 and xbox 360 both and also pc

tr00pa_26
tr00pa_26

yeah i agree no mopre tony hawk and other games that just doesnt work

drangel_jam
drangel_jam

COD 2 for the PS3 would bump the revenues, wouldn't!?

SoralinkGS
SoralinkGS

Make GUN 2 cooler then GUN. I loved GUN....I WANT GUN 2!

Orasion_Seiz
Orasion_Seiz

they better make good games if they want to be a big company

NeoJedi
NeoJedi

Even if you make quality games right now, your bottom line will be down nonetheless. The industry is going through a transitionnal year.

Hybrid094
Hybrid094

Nah, not always. They need more sequels, stat!

mars_elliot
mars_elliot

Quality games makes a quality bottom line.

codeegg
codeegg

Make a good james bond game , and kick EA's butt

natiko
natiko

You need to make good games to get profits.

soroush7
soroush7

Keep making better games.

soroush7
soroush7

Start making better games.

pungaboy
pungaboy

Please, more Ultimate Spider-man!

tiggerdn
tiggerdn

please no more tony hawk games!

represent32
represent32

Keep making games like true crime and thats what you'll get