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.