Activision Returns to Profit

Activision Inc. said the popularity of new games boosted its fiscal fourth-quarter sales by 30%.

Net income at the Santa Monica company totaled $6.66 million, or 4 cents a share, in the period ended March 31, contrasted with a net loss of $7.96 million, or 6 cents, a year earlier. Revenue increased to $162.9 million because of better-than-expected sales of a skateboarding game, “Tony Hawk’s Underground” and a war game, “Call of Duty.”

For the full year, net income rose to $77.7 million, or 54 cents a share, from $66.2 million, or 43 cents, the previous year. Sales rose 10% to nearly $948 million.

The company raised its guidance for the 2005 fiscal year to $1.05 billion in sales and earnings of 64 cents a share, from previous estimates of $1 billion in sales and earnings of 60 cents a share.

Shares of Activision rose 23 cents to $15.68 on Nasdaq, then dropped to $15.05 in extended trading after the financial results were released.