Activision predicts record quarter
Company touts preliminary record financial results of $822.8 million; results may be "significantly impacted" by legal fees relating to stock scandal, Quake Wars delayed to FY08.
Though it can't officially reveal its complete earnings as a result of being handcuffed by a backdating stock scandal, Activision did offer up a preliminary report on its third-quarter revenue for its 2007 fiscal year.
The company expects revenue for the three-month period ended December 31, 2006, to tally $822.8 million. That's a record for the publisher of Tony Hawk Project 8, Guitar Hero II, and Marvel Ultimate Alliance, topping the $816.2 million it took in during the same period in 2005.
However, Activision expects legal expenses because of the Securities and Exchanges Commission investigation into its "historical stock option grant practices" to "significantly" impact its financial results for its fourth quarter, which ends March 31, 2007. For Q4, Activision expects net revenue of $170 million.
The company also said that its numbers will be impacted by the delay of Quake Wars, the anticipated PC shooter from developers Splash Damage and id Software. Activision said, "Fourth quarter results will be significantly impacted by higher legal expenses...and [the] decision to move the release of Enemy Territory: Quake Wars into fiscal year 2008," which begins in April 2007.
The game's release date has been fairly cloudy, with Activision confirming it would not be released in 2006 last July, and recent Internet reports claiming the game would be released in March 2007. However, with today's news straight from the publisher, the game won't see the light of day until April, at the earliest. Inquiries into Activision for details on the new release date were unanswered as of press time.
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