Blizzard 2005 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2005 Blizzard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

18. QUARTERLY FINANCIAL AND MARKET INFORMATION (UNAUDITED)
Quarter ended
(Amounts in thousands, except per share data) June 30 Sept. 30 Dec. 31 Mar. 31 Year ended
FISCAL 2005:
Net฀revenues $ 211,276 $ 310,626 $ 680,094 $ 203,861 $ 1,405,857
Operating฀income฀(loss) 15,733 34,658 137,079 (2,899) 184,571
Net฀income 11,957 25,543 97,262 3,573 138,335
Basic฀earnings฀per฀share 0.07 0.14 0.52 0.02 0.74
Diluted฀earnings฀per฀share 0.06 0.13 0.47 0.02 0.66
Common฀stock฀price฀per฀share:
High 12.82 12.30 15.38 18.71 18.71
Low 10.31 9.12 9.36 13.59 9.12
FISCAL 2004:
Net฀revenues $ 158,725 $ 117,523 $ 508,511 $ 162,897 $ 947,656
Operating฀income฀(loss) 5,146 (16,933) 116,961 4,643 109,817
Net฀income฀(loss) 4,163 (10,093) 76,981 6,664 77,715
Basic฀earnings฀(loss)฀per฀share 0.02 (0.06) 0.43 0.04 0.44
Diluted฀earnings฀(loss)฀per฀share 0.02 (0.06) 0.40 0.03 0.40
Common฀stock฀price฀per฀share:
High 6.75 7.19 9.55 12.13 12.13
Low 4.51 5.43 5.79 8.54 4.51
19. RECENTLY ISSUED ACCOUNTING STANDARDS AND LAWS
On฀December฀16,฀2004,฀the฀Financial฀Accounting฀Standards฀Board฀(“FASB”)฀issued฀FASB฀Statement฀No.฀123฀(revised฀2004),฀“Share-Based฀Payment”฀(“SFAS฀No.฀123R”),฀
which฀ is฀ a฀ revision฀ of฀ FASB฀ Statement฀ No.฀ 123,฀ “Accounting฀ for฀ Stock-Based฀ Compensation”฀ (“SFAS฀ No.฀ 123”).฀ SFAS฀ No.฀ 123R฀ supersedes฀ APB฀ Opinion฀ No.฀ 25,฀
“Accounting฀for฀Stock฀Issued฀to฀Employees,”฀and฀amends฀FASB฀Statement฀No.฀95,฀“Statement฀of฀Cash฀Flows.”฀Generally,฀the฀approach฀in฀SFAS฀No.฀123R฀is฀similar฀to฀
the฀approach฀described฀in฀SFAS฀No.฀123.฀However,฀SFAS฀No.฀123R฀requires฀all฀share-based฀payments฀to฀employees,฀including฀grants฀of฀employee฀stock฀options,฀to฀be฀
recognized฀in฀the฀income฀statement฀based฀on฀their฀fair฀values.฀Pro฀forma฀disclosure฀is฀no฀longer฀an฀alternative.
SFAS฀No.฀123R฀must฀be฀adopted฀by฀the฀Company฀no฀later฀than฀April฀1,฀2006.฀Early฀adoption฀will฀be฀permitted฀in฀periods฀in฀which฀financial฀statements฀have฀not฀yet฀been฀
issued.฀The฀Company฀expects฀to฀adopt฀SFAS฀No.฀123R฀on฀April฀1,฀2006.
SFAS฀No.฀123R฀permits฀public฀companies฀to฀adopt฀its฀requirements฀using฀one฀of฀two฀methods:
•฀฀A฀“modified฀prospective”฀method฀in฀which฀compensation฀cost฀is฀recognized฀beginning฀with฀the฀effective฀date฀(a)฀based฀on฀the฀requirements฀of฀SFAS฀No.฀123R฀for฀all฀
share-based฀payments฀granted฀after฀the฀effective฀date฀and฀(b)฀based฀on฀the฀requirements฀of฀SFAS฀No.฀123฀for฀all฀awards฀granted฀to฀employees฀prior฀to฀the฀effective฀
date฀of฀SFAS฀No.฀123R฀that฀remain฀unvested฀on฀the฀effective฀date.
page 86
Activision, Inc. — 2005 Annual Report
Notes to Consolidated Financial Statements