Activision 1Q Boosted By Movie Titles

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Activision Inc. said Tuesday that it expects first-quarter results to exceed its previous guidance thanks to strong sales of games based on recently released movies.


The Santa Monica-based game developer said in a statement that it shipped more than 4 million units of “Spider-Man 3;” 2 million units of “Shrek the Third;” 1 million units of “Transformers: The Game;” and more than 1 million units of “Guitar Hero II,” during the first quarter.


Last month Activision forecast first-quarter earnings of 5 cents per share on sales of $425 million in revenue, excluding stock option expenses. Analysts polled by Thomson Financial expect a profit of 5 cents per share on sales of $420 million.


The announcement comes as the video game industry prepares to kick off its annual Electronic Entertainment Expo conference on Wednesday at the L.A. Convention Center.


Shares in Activision were up 35 cents, or 1.9 percent, to $18.75 in afternoon trading Tuesday on the Nasdaq. Shares have gained more than 79 percent since hitting a 52-week low a year ago.

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