Quake Wars Delayed News

Following a conference call to announce 'as expected' financial results, Activision has today confirmed that Enemy Territory: Quake Wars has been pushed back into the second fiscal quarter, which runs from the end of June to the end of August.

The move has meant reduced expectations for the publisher's first quarter performance, which ends in a few weeks time, and is further hampered by the legal expenses created as a result of the SEC's investigation into historical stock potion practices.

Elsewhere, Activision announced that the company's financial performance in the 2007 fiscal year, which ended on March 31st, met expectations. Net revenues for the year rose from $1.47 billion (£743.2 million) to $1.51 billion (£763.4 million), with net income more than doubling from $40.3 million (£20.3 million) to $85.8 million (£43.4 million). Fourth quarter results also saw net revenues increasing, from $188 million (£95.0 million) in the year before, to $313 million (£158.2 million). The company's net losses grew however, from $9.1 million (£4.6 million) in the fourth quarter last year, to $14.4 million (£7.3 million).

Robert Kotick, Chairman and CEO of Activision, Inc., commented, "Activision's fiscal year 2007 net revenues, which were the highest in the company's history, totaled $1.5 billion, marking 15 consecutive years of revenue growth. We delivered solid results for the fourth quarter driven by the success of Guitar Hero II and Call of Duty 3, as well as better than expected performance of the company's distribution business. Our balance sheet remains one of the strongest in the industry with nearly $1 billion in cash and short-term investments and $1.4 billion in shareholders' equity. Looking ahead to the end of the current 2008 fiscal year, Activision expects revenues to continue their upward drive, perhaps topping as much as $1.8 billion (£910.0 million) by the end of March 2008.

"We expect fiscal 2008 to be our largest and most profitable year ever. The combination of our first quarter slate and superb release schedule for the balance of the year, Guitar Hero's rapid rise as a popular cultural phenomenon and our solid leadership position on all of the major gaming platforms, should provide us with a competitive advantage as we enter the growth phase of the new hardware cycle. We remain focused on expanding operating margins by growing our balanced franchise portfolio, increasing our international publishing capabilities and continuing to improve operational efficiencies worldwide," Kotick added.