Activision, Inc. today announced record nett revenues for the fourth quarter and fiscal year ended March 31, 2005.

Nett revenues for the fiscal year ended March 31, 2005 were a record US$1,405.9 million, or 48% higher, as compared to $947.7 million for the fiscal year ended March 31, 2004. Nett income for the fiscal year was a record $138.3 million, a 78% increase over net income of $77.7 million for the last fiscal year.

Nett revenues for the fourth quarter ended March 31, 2005 were $203.9 million, an increase of 25%, as compared to $162.9 million that the company reported for the fourth quarter of the last fiscal year. For this fiscal year's fourth quarter, the company reported nett income of $3.6 million. Nett income for the fiscal year 2004 fourth quarter was $6.7 million.

Robert Kotick, Chairman and CEO of Activision, Inc., commented, "Fiscal 2005 was another record year for Activision. We delivered the highest nett revenues, operating margin and earnings in the company's history. Our nett revenues reached $1.4 billion, which was driven by an increase in the number of million-unit selling games year over year. We have one of the industry's strongest balance sheets with $841 million of cash and short-term investments and for the trailing 12 months our free cash flow was a record $200 million and return on invested capital was 45%. Perhaps most importantly, our gain in shareholders' equity in fiscal 2005 was $267 million. Since fiscal 2000, our shareholders' equity has increased from $132 million to $1.1 billion, a 53% rate compounded annually."

Kotick added, "We entered fiscal 2006 with the largest installed base of video gaming platforms in the industry's history and, we believe, our strongest product release slate ever.

"We have more depth in our portfolio of franchises, and with over 1,000 talented team members in our internal studios, we have one of the strongest product development operations in the industry. We remain enthusiastic about our long-term prospects and our operating margin expansion programmes should enable us to continue delivering long-term value to our shareholders."

Activision's fiscal year end results were driven by record worldwide sales of several titles across all platforms. As a result of these strong sales, the company's domestic publishing nett revenues increased 56% and its international publishing revenues grew 72%. The company ended the fiscal year with two top-10 best-selling games across the console and handheld platforms in the U.S. - Spider-Man 2 and Tony Hawk's Underground 2 and three top-10 best-selling PC games in the U.S. - Doom 3, Rome: Total War and Call of Duty, according to NPD.