Activision Blizzard Reports 4Q Financials

Feb 12, 2009 (Close-Up Media via COMTEX) -- ATVID | Quote | Chart | News | PowerRating -- Activision Blizzard announced December quarter and calendar year financial results.

In a release, the company stated:

- The company reports results on both a GAAP and a non-GAAP basis. Non-GAAP results exclude the impact of the change in deferred net revenues and related costs of sales; equity-based compensation expense; non-core exit operations; one-time costs related to the business combination with Vivendi Games; the amortization of intangibles and the changes in cost of sales resulting from purchase price accounting adjustments; and associated tax benefits. The company also reviews segment performance exclusive of the items said above.

- For the quarter ended December 31, 2008, Activision Blizzard's GAAP net revenues were $1.6 billion and the company's non-GAAP net revenues were $2.3 billion. The company's prior non-GAAP net revenues outlook was $2.2 billion.

- For the quarter ended December 31, 2008, Activision Blizzard recorded a GAAP operating loss of $148 million. The company's non-GAAP operating income was $644 million for the quarter, the highest in the company's history.

- For the quarter ended December 31, 2008, Activision Blizzard had a GAAP net loss of $72 million, or a GAAP loss per diluted share of $0.05. The company had non-GAAP net income of $429 million and non-GAAP earnings per diluted share of $0.31. The company's prior non-GAAP earnings per diluted share outlook was $0.29.

- For the calendar year, Activision Blizzard's GAAP net revenues were $3.0 billion. The company's segment net revenues from core operations were $3.7 billion. Including Activision's stand-alone net revenues of $1.3 billion for the pre-acquisition period of January 1 - July 9, 2008, the company's non-GAAP comparable-basis net revenues were $5.0 billion, the highest in the company's history. The company's prior non-GAAP comparable-basis net revenues outlook was $4.9 billion.

- Activision Blizzard's GAAP operating loss for the calendar year 2008 was $0.2 billion. The company's segment operating income from Activision Blizzard's core operations was $1.0 billion. Including Activision's pre-acquisition stand-alone segment operating income of $0.2 billion for January 1 - July 9, 2008, the company's non-GAAP comparable-basis operating income was $1.2 billion, which is inline with the company's prior outlook.

Robert Kotick, CEO of Activision Blizzard, said, "Activision Blizzard has delivered record December quarter and calendar year 2008 non-GAAP comparable-basis results. On a non-GAAP comparable basis, Activision Blizzard has finished the calendar year as the largest and most profitable third-party publisher with more than $5 billion of net revenues. These results exceeded the calendar 2009 financial goals that we outlined over a year ago -- when we announced the planned combination of Activision and Blizzard -- of $4.3 billion of non-GAAP net revenues and non-GAAP operating income of $1.1 billion. We achieved these results one full year ahead of our original plan. Our balance sheet remains strong with no debt and more than $3 billion in cash.

"In 2008, we had four of the top-10 best-selling games worldwide for the year. Ninety percent of the top-ten best-selling games worldwide were based on proven franchises, validating our strategy of a focused product slate with high-quality titles based on well-established brands. We enter 2009 with the finest product slate in our company's history and an organization properly sized and resourced to compete alongside the many new entrants and existing competitors in our industry. During the year, we will continue to employ our proven strategies that have worked so well for us over the last decade.

"During the year, we successfully achieved our merger restructuring goals, including the elimination of unprofitable product lines, right sizing our organization and integrating disparate accounting and IT systems, all with minimal disruption to our business. The success of our merger integration coupled with the strength of our product lineup should enable us to once again deliver record, industry-leading non-GAAP margins in 2009. All of our accomplishments reflect the effort, imagination and intellectual and creative talents of the people who work here. We are well poised to continue generating future shareholder value, as we have for the past 17 years."

Headquartered in Santa Monica, California, Activision Blizzard is a pure-play online, PC, console and handheld game publisher with market positions across every major category of the interactive entertainment software industry.

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