Activision Increases Fiscal Guidance

The company said it expects loss of 12-14 cents per share in Q4, on revenue of $120-$125 million. In January it anticipated a loss of 15 cents per share on revenue of $100 million. For fiscal 2003, which ended March 31, the company anticipates earnings of 95-97 cents per share, on revenue of $859-$864 million. It had earlier forecasted earnings of 91 cents per share on revenue of $839 million. Activision noted that increased revenue in the fiscal fourth quarter was largely offset by higher-than-expected operating expenses. These expenses increased due to an accounting decision: the company decided to front-load the costs associated with various long-term licensing agreements and investments, deciding that the lifespan of the investments was shorter than earlier projected. It did not specify which licenses had prompted the accounting change. Activision said its fiscal 2004 outlook remains unchanged.