New Bond game studio Activision sees red in fourth quarter
Video-game publisher Activision Inc. was hurt in the fourth quarter as the video game industry is seeing a general downturn due to the switching to next-generation game consoles - reports BizJournals
Activision recently won the rights to produce videogame under the James Bond franchise.
The Santa Monica company lost $9.2 million, or 3 cents a share, in the quarter. For the fourth quarter of 2005, the company turned a profit of $3.6 million, or 1 cent a share.
The losses were less than those predicted by analysts, as estimates placed the losses at 8 cents a share.
Revenues were also down for the quarter, coming in at $188.1 million, down from $203.9 million a year earlier.
On Wednesday, the company was granted the license to produce games for the James Bond franchise through 2014, including games based on Bond movies, as well as non-movie games.
For the end of 2006, Activision earned $41.9 million, or 14 cents a share, on $1.47 billion in revenues. Lasy year, the company earned $138.3 million, or 50 cents a share, last year, on $1.41 billion in revenues.
Santa Monica's Activision Inc. (NASDAQ: ATVI) is parent company to Activision Value Publishing, a subsidiary of Activision Publishing Inc. Its titles include "Call of Duty," "Quake" and the Tony Hawk series.
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