Activision Posts 26% Gain in Profit

Activision Inc. posted a 26% jump in net income to $97.3 million, or 63 cents a share, in its fiscal third quarter from $77 million, or 53 cents, a year earlier.

Sales at the Santa Monica game publisher grew 34% to $680.1 million on the strength of “Tony Hawk’s Underground 2” and “Call of Duty: Finest Hour.”

Analysts polled by Thomson First Call had projected net income of $83.7 million, or 56 cents a share, on sales of $617 million.

Investors, however, focused on the company’s announcement that its much-anticipated “Doom 3” for the Xbox console would be delayed until its next fiscal year.

Activision’s shares gained 27 cents to $24.06 on Nasdaq but fell 58 cents to $23.48 in after-hours trading.

Alex Pham