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TWO THOUSAND AND SEVEN
ANNUAL REPORT
GAME ON

Table of contents

  • Page 1
    GAME ON T WO THOUSAND AND SE VEN ANNUAL REPORT

  • Page 2
    IN FISCAL 2007, THE VIDEO GAME INDUSTRY ENTERED A NEW ERA WHERE TECHNOLOGY AND CREATIVITY WILL FUSE TO PRODUCE THE MOST STUNNING INTERACTIVE ENTERTAINMENT EXPERIENCES EVER . THE NEXT- GENERATION CONSOLES ARE EXPECTED TO GREATLY EXPAND THE REACH OF GAMES AND CREATE NEW OPPORTUNITIES FOR ACTIVISION TO...

  • Page 3
    & © 2007 Marvel Characters, Inc. © 2007 CPII. All Rights Reserved. TM

  • Page 4

  • Page 5
    ... console systems are TRANSFORMing the way video games are played. In fiscal 2007, Activision firmly established its leadership on the next-generation platforms. Demand for innovative interactive entertainment will propel the industry into what could be the greatest growth period in its history.

  • Page 6
    ARE YOU READY? Photo by Atiba Jefferson

  • Page 7
    WE ARE !

  • Page 8

  • Page 9

  • Page 10

  • Page 11
    ...the acquisition of video game publisher RedOctane, makers of Guitar Hero. We successfully integrated RedOctane into our business and Guitar Hero is one of the fastest growing franchises in Activision's history. Today, we are in an excellent position, both strategically and operationally, to build on...

  • Page 12
    ...our competitive advantage. Expanding our balanced franchise portfolio: In fiscal 2007, we continued to expand the breadth and depth of our brand portfolio by adding three new intellectual properties- Guitar Hero, James Bond and Marvel â„¢: Ultimate Allianceâ„¢ -and growing our two largest franchises...

  • Page 13
    ... and superhero properties. Improving our operating efficiency worldwide: In the coming fiscal year, we will continue to capitalize on opportunities to increase our operating margin through innovation and operational efficiencies. In fiscal 2007, we realized cost savings in product development by...

  • Page 14
    ... of Directors' Nominating and Corporate Governance Committee, realigned certain internal responsibilities relating to the granting and reporting of equity compensation and have implemented a number of modifications to our option granting policies and practices. Our capacity to deliver high operating...

  • Page 15
    ... years in the three-year period ended March 31, 2007, and the report thereon, are included elsewhere in this report (in thousands, except per share data). For the fiscal years ended March 31, Statement of Operations Data: Net revenues Cost of sales-product costs Cost of sales-intellectual property...

  • Page 16
    ..., discount warehouses, and game specialty stores. We conduct our international publishing activities through offices in the United Kingdom ("UK"), Germany, France, Italy, Spain, the Netherlands, Australia, Scandinavia, Canada, South Korea, and Japan. Our products are sold internationally on a direct...

  • Page 17
    .... We continue to develop a number of original intellectual properties internally. For example, in the third quarter of fiscal 2007 we released Call of Duty 3 on the PS2, PS3, Xbox, Xbox360, and the Wii. According to the NPD Group, Call of Duty 3 was the #3 best-selling console game in the U.S. Call...

  • Page 18
    ... the Hedge," which was released in the first quarter of fiscal 2007, and all of their respective sequels. In addition, our multi-year agreement with DreamWorks Animation LLC also grants us the exclusive video game rights to four upcoming feature films, as well as potential future films in the "Shrek...

  • Page 19
    ...data. We closely monitor and analyze the historical performance of our various titles, the performance of products released by other publishers and the anticipated timing of other releases in order to assess future demands of current and upcoming titles. Initial volumes shipped upon title launch and...

  • Page 20
    ...new hardware platforms. Material differences may result in the amount and timing of our revenue for any period if factors or market conditions change or if management makes different judgments or utilizes different estimates in determining the allowances for returns and price protection. For example...

  • Page 21
    ... multiple years, we also assess the recoverability of capitalized intellectual property license costs based on certain qualitative factors such as the success of other products and/or entertainment vehicles utilizing the intellectual property, whether there are any future planned theatrical releases...

  • Page 22
    ... 2007 A N NUA L R EPORT Management's Discussion and Analysis of Financial Condition and Results of Operations Commencing upon the related product's release, capitalized intellectual property license costs are amortized to "cost of sales-intellectual property licenses" based on the ratio of current...

  • Page 23
    ... APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that are outstanding upon adoption of SFAS 123R. SFAS 123R requires companies to estimate the fair value of share-based payment awards on the measurement date using an option-pricing...

  • Page 24
    ... platform, as well as operating income by business segment (in thousands): Fiscal year ended March 31, Net revenues Costs and expenses: Cost of sales-product costs Cost of sales-software royalties and amortization Cost of sales-intellectual property licenses Product development Sales and marketing...

  • Page 25
    ...fourth quarter and strong price realization. In fiscal 2007, our major releases included Call of Duty 3, Guitar Hero II, Marvel: Ultimate Alliance, Tony Hawk's Project 8, Over the Hedge, X-Men: Official Game, Shrek Smash n' Crash Racing, Tony Hawk's Downhill Jam, World Series of Poker: Tournament of...

  • Page 26
    ... publishing net revenues increased 6% from $710.0 million for the year ended March 31, 2006 to $753.4 million for the year ended March 31, 2007. Although the company released fewer titles in fiscal 2007, the high quality slate drove strong consumer demand and enabled the company to maintain pricing...

  • Page 27
    ...of Year Ended % of March 31, Publishing March 31, Publishing Increase/ Percent 2007 Net Revs 2006 Net Revs (Decrease) Change Publishing Net Revenues PC Console Sony PlayStation 3 Sony PlayStation 2 Microsoft Xbox360 Microsoft Xbox Nintendo Wii Nintendo GameCube Other Total console Hand-held Game Boy...

  • Page 28
    ..., and Guitar Hero II (game and accessories), the #1 best-selling title on the PS2 platform for the third quarter of fiscal 2007 per NPD Funworld. In addition, we released Marvel: Ultimate Alliance, Over the Hedge, Tony Hawk's Project 8, X-Men: The Official Game, Shrek Smash n' Crash Racing and our...

  • Page 29
    ... and X-Men: The Official Game. In fiscal 2006, we released our largest slate including Call of Duty: Big Red One, Tony Hawk's American Wasteland, GUN, Ultimate Spider-Man, X-Men Legends II, True Crime: New York City, Shrek: SuperSlam, Madagascar, Fantastic Four and the Xbox exclusive, Doom 3. We...

  • Page 30
    ... Hawk's American Wasteland, Ultimate Spider-Man, Fantastic Four, Call of Duty: Big Red One, True Crime: New York City, GUN, Shrek SuperSlam and X-Men Legends II. This compares to fiscal 2007 when we released four titles: Over the Hedge, X-Men: The Official Game, Shrek Smash n' Crash Racing, and our...

  • Page 31
    ...and the September 2005 European platform launch. The 2006 slate included Tony Hawk's Underground 2, Spider-Man 2, X-Men Legends II, World Series of Poker, and two affiliate titles in Europe. Our key releases in fiscal 2007 were Marvel: Ultimate Alliance, Tony Hawk's Project 8, Call of Duty: Roads to...

  • Page 32
    ACTI V ISION, INC . •• 2007 A N NUA L R EPORT Management's Discussion and Analysis of Financial Condition and Results of Operations PS2 to hold at $39.99 with continued momentum on this platform. We will not be launching any new NGC or Xbox title in fiscal year 2008. Distribution Net Revenues (...

  • Page 33
    ... The decreases were mainly due to: • A decrease in the number of titles released in fiscal 2007 as compared to the prior year when we had the largest slate of new releases in our history. A decrease in amortization of software development costs from internally developed games, was partially offset...

  • Page 34
    ... Four, Ultimate Spider-Man, X-Men Legends II, THAW, Quake IV, and Shrek SuperSlam. We expect intellectual property licenses to increase in absolute dollars and as a percentage of publishing net revenues in fiscal 2008 as a result of our planned title slate which includes several key releases with...

  • Page 35
    ... of a more targeted media program which worked more efficiently helped by the overall strength and high quality of our fiscal 2007 title slate. We also released fewer titles in fiscal 2007 compared to fiscal 2006, where we had the largest slate of new releases in our history. The decreases were...

  • Page 36
    ...our marketing programs. • The implementation of certain cost control initiatives resulting in decreased product development and general and administrative expenses (excluding expenses related to our internal review of historical stock option granting practices and expenses relating to the informal...

  • Page 37
    ... year over year in the number of titles released. Our fiscal 2006 launch schedule included the largest slate of new releases in our history. In fiscal 2006, we released seventeen major titles including the following major releases: Doom 3 for the Xbox, Madagascar, Fantastic Four, Ultimate Spider-Man...

  • Page 38
    ... EPORT Management's Discussion and Analysis of Financial Condition and Results of Operations releases: Spider-Man 2, Call of Duty: Finest Hour, Tony Hawk's Underground 2 ("THUG 2"), Shrek 2, X-Men Legends, Doom 3, Lemony Snicket's A Series of Unfortunate Events, Shark Tale, Cabela's Big Game Hunter...

  • Page 39
    ... (in thousands): Year Ended % of Year Ended % of March 31, Publishing March 31, Publishing Increase/ Percent 2006 Net Revs 2005 Net Revs (Decrease) Change Publishing Net Revenues PC Console Sony PlayStation 2 Microsoft Xbox Microsoft Xbox360 Nintendo GameCube Other Total console Hand-held Game Boy...

  • Page 40
    ...an increase in the provision for returns and price protection on new releases due to weaker market conditions. In addition, Madagascar, which was our fifth best-selling PS2 title for fiscal 2006 in terms of units sold, was released at a lower initial retail pricing point of $39.99 compared to $49.99...

  • Page 41
    ... pricing of $59.99. Although limited by hardware availability in fiscal 2006, we experienced strong sales of these four titles, and, according to NPD Funworld, Call of Duty 2 was the number one title on the Xbox360 and had the highest attach rate of any console launch in video game history. Nintendo...

  • Page 42
    ...PC net revenues as a percentage of publishing net revenues from 21% in fiscal 2005 to 16% in fiscal 2006. Products for PC typically have lower costs of sales-product costs associated with them as they do not require royalty payments to hardware manufacturers. • An increase in provision for returns...

  • Page 43
    ... quarter of fiscal 2006. The number of titles with associated intellectual property remained relatively flat year over year. In fiscal 2006, we released the following titles with associated intellectual property: Doom 3 for the Xbox, Madagascar, Fantastic Four, Ultimate Spider-Man, X-Men Legends...

  • Page 44
    ... market conditions, the lower than expected performance of some of our third quarter fiscal 2006 releases, and risks associated with console transition, we performed a thorough review of our upcoming product slate. To better align opportunities associated with the next-generation console platforms...

  • Page 45
    ... Publishing operating income for the year ended March 31, 2006 decreased $162.6 million from the same period last year, from $155.9 million to an operating loss of $6.7 million. The decrease is primarily due to: • Increased sales and marketing spending to support our large title release slate...

  • Page 46
    ... diluted share for the year ended March 31, 2005. Selected Quarterly Operating Results Our quarterly operating results have in the past varied significantly and will likely vary significantly in the future, depending on numerous factors, several of which are not under our control. Our business also...

  • Page 47
    ...international credit facilities, to finance our operational requirements for at least the next twelve months, including purchases of inventory and equipment, the funding of the development, production, marketing and sale of new products, and the acquisition of intellectual property rights for future...

  • Page 48
    ... employee stock option and stock purchase plans. The decrease in cash provided by financing activities from the prior year is due to the suspension of stock option exercises as of November 9, 2006 due to our internal review of historical stock option granting practices. During fiscal 2003, our Board...

  • Page 49
    ... March 31, 2007 due to continued investment in software development for titles being developed for release in fiscal 2008, particularly for three significant new games slated for release in the first quarter of fiscal 2008, offset by amortization of software development costs for titles launched in...

  • Page 50
    ... MGM Interactive and EON Productions Ltd. to develop and publish interactive entertainment games based on the James Bond license. Partially offset by: • $10.0 million of amortization of intellectual property licenses mostly related to releases in the first quarter of fiscal 2007. Accounts Payable...

  • Page 51
    ...for marketing support for the related game(s) which is to be developed or in which the intellectual property will be utilized. Additionally, we lease certain of our facilities and equipment under non-cancelable operating lease agreements. Assuming all contractual provisions are met, the total future...

  • Page 52
    ... that is utilized in the preparation of our periodic public reports filed with the Securities and Exchange Commission. Financial results and other financial information also are reviewed with the Audit Committee of the Board of Directors on a quarterly basis. As required by applicable regulatory...

  • Page 53
    ... servicing assets and servicing liabilities. SFAS No. 156 is effective in the first fiscal year that begins after September 15, 2006. We do not expect that the adoption of SFAS No. 156 will have a material effect on our financial position or results of operations. In July 2006, the FASB issued...

  • Page 54
    ... of the employer's fiscal year, and (3) recognize changes in the funded status of a plan through comprehensive income in the year in which the changes occur. The adoption of SFAS No. 158 had no impact on our financial position or results of operations. In February 2007, the FASB issued Statement No...

  • Page 55
    ..., at those times when we have structured stock repurchase transactions outstanding, it is possible that at settlement we could take delivery of shares at an effective repurchase price higher than the then market price. As of March 31, 2007, we had no structured stock repurchase transactions...

  • Page 56
    ... in Exchange Act Rule 13a-15(f). Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness, as of March 31, 2007, of our internal control over financial reporting using the criteria set forth by the Committee of...

  • Page 57
    ...meets at least quarterly, to review and approve all documented and verified proposed grants submitted by the Cross Functional Team. All grants approved by the Compensation Committee are effective, and priced based on the closing price of our stock, on a date set by the Compensation Committee that is...

  • Page 58
    ... Report to Shareholders, that the Company maintained effective internal control over financial reporting as of March 31, 2007 based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), is fairly stated...

  • Page 59
    ...the effectiveness of the Company's internal control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan...

  • Page 60
    ...,418 and $98,253 at March 31, 2007 and 2006, respectively Inventories Software development Intellectual property licenses Deferred income taxes Other current assets Total current assets Software development Intellectual property licenses Property and equipment, net Deferred income taxes Other assets...

  • Page 61
    ...•• 2007 A N NUA L R EPORT Consolidated Statements of Operations (in thousands, except per share data) For the fiscal years ended March 31, Net revenues Costs and expenses: Cost of sales-product costs Cost of sales-software royalties and amortization Cost of sales-intellectual property licenses...

  • Page 62
    ... of common stock to employees Stock-based compensation Restricted stock grant Cash distribution for fractional shares Amortization of unearned compensation Tax benefit attributable to employee stock options and common stock warrants Issuance of common stock to effect business combinations Balance...

  • Page 63
    ... and write-offs of capitalized software development costs and intellectual property licenses Amortization of stock compensation expenses Tax benefit of stock options and warrants exercised Excess tax benefit from stock option exercises Change in operating assets and liabilities (net of effects of...

  • Page 64
    ... target customer base ranges from casual players to game enthusiasts, children to adults, and mass-market consumers to "value" buyers. We currently offer our products primarily in versions that operate on the Sony PlayStation 2 ("PS2"), Sony PlayStation 3 ("PS3"), Nintendo Wii ("Wii"), and Microsoft...

  • Page 65
    ... Federal Deposit Insurance Corporation ("FDIC") limit at these financial institutions. Our customer base includes retail outlets and distributors, including mass-market retailers, consumer electronics stores, discount warehouses, and game specialty stores in the United States and countries worldwide...

  • Page 66
    ... Be Sold, Leased, or Otherwise Marketed." Software development costs are capitalized once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility of a product encompasses both technical design documentation and game design...

  • Page 67
    ...multiple years, we also assess the recoverability of capitalized intellectual property license costs based on certain qualitative factors, such as the success of other products and/or entertainment vehicles utilizing the intellectual property, whether there are any future planned theatrical releases...

  • Page 68
    ... multiple years, we also assess the recoverability of capitalized intellectual property license costs based on certain qualitative factors such as the success of other products and/or entertainment vehicles utilizing the intellectual property, whether there are any future planned theatrical releases...

  • Page 69
    .... We closely monitor and analyze the historical performance of our various titles, the performance of products released by other publishers, and the anticipated timing of other releases in order to assess future demands of current and upcoming titles. Initial volumes shipped upon title launch and...

  • Page 70
    ...new hardware platforms. Material differences may result in the amount and timing of our revenue for any period if factors or market conditions change or if management makes different judgments or utilizes different estimates in determining the allowances for returns and price protection. For example...

  • Page 71
    ... "Share-Based Payment" ("SFAS 123R"), which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options and employee stock purchases related to the Employee Stock Purchase Plan ("employee stock...

  • Page 72
    ... APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that are outstanding upon adoption of SFAS 123R. SFAS 123R requires companies to estimate the fair value of share-based payment awards on the measurement date using an option-pricing...

  • Page 73
    ... its interactive entertainment products in versions that operate on the PS2, Xbox360, and PC, and its leading software product offering is Guitar Hero. RedOctane also designs, manufactures, and markets high quality video game peripherals and accessories. This acquisition provides Activision with an...

  • Page 74
    ... in the publishing segment of our business and is non-deductible for tax purposes. Purchase Price Allocation The purchase price for the RedOctane transaction was allocated to assets acquired and liabilities assumed as set forth below (in thousands): Current assets Property and equipment, net Other...

  • Page 75
    ... Unrealized Fair Cost Gains Losses Value Cash and cash equivalents: Cash and time deposits Commercial paper Money market instruments Corporate bonds Cash and cash equivalents Short-term investments: U.S. agency issues Corporate bonds Mortgage-backed securities Taxable auction rate notes Asset...

  • Page 76
    ... Fair Cost Gains Losses Value Cash and cash equivalents: Cash and time deposits Commercial paper Money market instruments U.S. agency issues Cash and cash equivalents Short-term investments: U.S. agency issues Corporate bonds Mortgage-backed securities Common stock Asset-backed securities Commercial...

  • Page 77
    ...unrealized loss position for twelve months or greater. The Company's investment portfolio usually consists of government and corporate securities with effective maturities less than 30 months. The longer the term of the securities, the more susceptible they are to changes in market rates of interest...

  • Page 78
    ... of the following (amounts in thousands): As of March 31, Land Buildings Leasehold improvements Computer equipment Office furniture and other equipment Total cost of property and equipment Less accumulated depreciation Property and equipment, net $ 2007 612 4,915 19,816 61,382 19,879 106,604 (60...

  • Page 79
    ...-party publishers. In the United States, we primarily sell our products on a direct basis to mass-market retailers, consumer electronics stores, discount warehouses, and game specialty stores. We conduct our international publishing activities through offices in the UK, Germany, France, Italy, Spain...

  • Page 80
    ...,857 A significant portion of our revenues is derived from products based on a relatively small number of popular brands each year. In fiscal 2007, 39% of our consolidated net revenues (52% of worldwide publishing net revenues) was derived from three brands, which accounted for 17%, 13%, and 9% of...

  • Page 81
    ..., Federal income tax provision at statutory rate State taxes, net of federal benefit Research and development credits Decremental effect of foreign tax rates Increase (decrease) in valuation allowance Increase (decrease) in tax reserves Other 2007 35.0% 4.1 (8.5) (3.6) (26.6) 18.8 2.7 21.9% 2006 35...

  • Page 82
    ... 31, 2007, our available federal net operating loss carryforward of approximately $34.9 million is subject to certain limitations as defined under Section 382 of the Internal Revenue Code. The net operating loss carryforwards expire between 2022 and 2026. We have various state net operating loss...

  • Page 83
    ...October 22, 2004, the President of the United States signed the American Jobs Creation Act of 2004 (the "Act") which contains a number of tax law modifications with accounting implications. For companies that pay U.S. income taxes on manufacturing activities in the U.S., the Act provides a deduction...

  • Page 84
    ... normal course of business, we enter into contractual arrangements with third parties for non-cancelable operating lease agreements for our offices, for the development of products, as well as for the rights to intellectual property. Under these agreements, we commit to provide specified payments to...

  • Page 85
    ...on behalf of the Company, against certain current and former members of the Company's Board of Directors as well as several current and former officers of the Company. Three derivative actions have been filed in Los Angeles Superior Court: Vazquez v. Kotick, et al., L.A.S.C. Case No. BC355327 (filed...

  • Page 86
    ... a material adverse effect on our business, financial condition, results of operations, or liquidity. 14. Stock-Based Compensation and Employee Benefit Plans We have a stock-based compensation program that provides our Board of Directors broad discretion in creating employee equity incentives. This...

  • Page 87
    ..., deferred share awards, and other common stockbased awards to directors, officers, employees, consultants, and others. The total number of shares of common stock available for distribution under the 1999 Plan is 30,000,000. The 1999 Plan requires available shares to consist in whole or in part of...

  • Page 88
    ...stock awards, deferred stock awards, and other common stock-based awards to directors, officers, employees, consultants, and others. The 2003 Plan requires available shares to consist in whole or in part of authorized and unissued shares or treasury shares. The total number of shares of common stock...

  • Page 89
    ... market value of our common stock at the date of grant. No third-party warrants were granted during the years ended March 31, 2007, 2006, and 2005. As of March 31, 2007 and 2006, third-party warrants to purchase 936,000 shares of common stock were outstanding with a weighted average exercise price...

  • Page 90
    ... as follows: (in thousands except per share data) For the year ended March 31, 2007 Additional pre-tax stock-based compensation Additional stock-based compensation, net of tax Cash flows from operations Cash flows from financing activities Effect on earnings per share: Basic Diluted $21,436 13,055...

  • Page 91
    ...2005: For the year ended March 31, Cost of sales-software royalties and amortization Product development Sales and marketing General and administrative Stock-based compensation expense before income taxes Income tax benefit Total stock-based compensation expense after income taxes 2007 $ 2,503 5,728...

  • Page 92
    ... expected future changes in model inputs during the option's contractual term. The inputs required by our binomial-lattice model include expected volatility, risk-free interest rate, risk-adjusted stock return, dividend yield, contractual term, and vesting schedule, as well as measures of employees...

  • Page 93
    ... during the year ended March 31, 2005, the expected stock price volatility ranged from 45% to 48%, with a weighted average volatility of 48%. As is the case for volatility, the risk-free rate is assumed to change during the option's contractual term. Consistent with the calculation required by...

  • Page 94
    ...share-based payment awards as of the grant date depends upon the accuracy of the model and our ability to accurately forecast model inputs as long as ten years into the future. These inputs include, but are not limited to, expected stock price volatility, risk-free rate, dividend yield, and employee...

  • Page 95
    ... compensation cost related to stock options is expected to be recognized over a weighted average period of 1.61 years. The following table summarizes information about all employee and director stock options outstanding as of March 31, 2007 (share amounts in thousands): Exercisable Outstanding...

  • Page 96
    ...right a number of the acquiring company's common shares having a market value equal to two times the then current exercise price of the right. For persons who, as of the close of business on April 18, 2000, beneficially own 15% or more of the common stock of Activision, the Rights Plan "grandfathers...

  • Page 97
    ... Cash Flow Information Non-cash investing and financing activities and supplemental cash flow information are as follows (amounts in thousands): For the years ended March 31, Non-cash investing and financing activities: Subsidiaries acquired with common stock Change in unrealized appreciation...

  • Page 98
    ... 0.15 0.14 18.03 10.64 Fiscal 2007: Net revenues Cost of sales Operating income (loss) Net income (loss) Basic earnings (loss) per share Diluted earnings (loss) per share Common stock price per share: High Low Fiscal 2006: Net revenues Cost of sales Operating income (loss) Net income (loss) Basic...

  • Page 99
    ... servicing assets and servicing liabilities. SFAS No. 156 is effective in the first fiscal year that begins after September 15, 2006. We do not expect that the adoption of SFAS No. 156 will have a material effect on our financial position or results of operations. In July 2006, the FASB issued...

  • Page 100
    ... of the employer's fiscal year, and (3) recognize changes in the funded status of a plan through comprehensive income in the year in which the changes occur. The adoption of SFAS No. 158 had no impact on our financial position or results of operations. In February 2007, the FASB issued Statement No...

  • Page 101
    ... held by employees who are not executive officers, Activision commenced an offer to amend the exercise price of these options to eliminate the grantee's Section 409A tax liability consistent with Internal Revenue Service guidance. Pursuant to the offer, the Company will also make a cash payment in...

  • Page 102
    ... the NASDAQ National Market under the symbol "ATVI." The following table sets forth for the periods indicated the high and low reported sale prices for common stock. As of June 7, 2007, there were approximately 2,417 holders of record of our common stock. High Fiscal 2006 First Quarter ended June 30...

  • Page 103
    ... March 31, 2007. We have We have never paid cash dividends on our common stock and have no present plans to do so. never paid cash dividends on our common stock and have no present plans to do so. Comparison of 5-Year Cumulative Total Return* OF 5 YEAR TOTAL RETURN* COMPARISON Among Activision, Inc...

  • Page 104
    ... the Company's future results include, but are not limited to, those discussed in Activision's Annual Report on Form 10-K for the fiscal year ended March 31, 2007 under the heading "Risk Factors," included in Part II, Item 1A, which was filed with the United States Securities and Exchange Commission...

  • Page 105
    ...World Wide Web Site www.activision.com E-Mail [email protected] Annual Meeting September 27, 2007 The Beverly Hills Hotel 9641 Sunset Boulevard Beverly Hills, California 90210 Annual Report on Form 10-K designed by curran & connors, inc. / www.curran-connors.com Domestic Offices Board of Directors...

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