Activision Second Quarter Results Cause Cancellations

Officials from Activision have announced financial results for the second quarter and the six-month period ended September 30. For the second quarter net revenues were $117.5 million, compared to $169.2 million in the previous year and the net loss was $10.1 million or a loss of $0.11 per share – this compares to a net income of $9.1 million or $0.08 per diluted share at the same time last year. For the six-month period net revenues were down from $360.4 million to $276.2 million and a net loss was posted of $5.9 million, or $0.07 per share, compared to a net income of $29.8 million or $0.28 per diluted share last year. A significantly smaller release schedule was blamed for the relatively weak results, although the company’s answer to this was to immediately cancel three multiformat titles, namely Shaun Palmer's Pro Snowboarder 2, Street Hoops 2, and Trinity. It was also announced that Doom 3 would not be released until after the end of the financial year in April 2004. Third quarter results are expected to be significantly better though, with the release of heavily hyped titles such as Call of Duty, True Crime: Streets of LA and Tony Hawk’s Underground. The company has raised its forecasts for this period to $390 million or $0.45 per diluted share. The outlook for the full financial year, despite the delay of Doom 3, has also been raised from $750 million to $780 million.