Activision revealed today its financial results for the third quarter and nine months, ending December 31, 2004.

At $680.1 million, Activision's net revenues were 34 percent higher than last years $508.5 million for the third quarter. The companies net income had a 26 percent increase over last years third quarter, rising to $97.3 million.

The company also announced record net revenues of $1.2 billion for the nine month period that ended December 31, 2004, an increase of 53 percent. Activision increased its outlook for the fourth quarter of fiscal year 2005 to $150 million from $128 million for net revenues.

Robert Kotick, Chairman and CEO of Activision, Inc., commented, "For the first nine months of fiscal year 2005, net revenues have already exceeded net revenues in fiscal 2004, resulting in 13 consecutive years of revenue growth for Activision. We ended the quarter with more than $713 million in cash and short term investments and for the trailing 12 months, our free cash flow was $107 million and return on invested capital was 46%. Our results to date were driven by the release of over 10 one million-unit selling games. Four of these titles sold in excess of two million units. These proven franchises should allow us to continue improving our market position domestically and internationally."

Kotick continued, "As we look toward the future, we are very excited about the opportunities ahead. The combination of our product slate, the emerging opportunities created by new hardware technologies and the ever increasing installed base of current console hardware should enable us to continue expanding our net revenues, earnings and operating margin. In fiscal 2006, we will release the strongest game slate in our history which includes new versions of our top-selling fiscal 2005 franchises -- Tony Hawk, Spider-Man, Shrek, Call of Duty, DOOM, and X-Men, as well as games based on True Crime, Fantastic Four, Madagascar, Quake, The Movies, and an original new property from Neversoft, the development team behind the Tony Hawk series."
Activision had five top 10 games in the U.S. including Call of Duty: Finest Hour, Tony Hawk's Underground 2, DOOM 3, Rome: Total War and the Nintendo DS release of Spider-Man 2.