The Information Technology 100
It's where the movie hits come to play -- on PCs and game consoles, that is. By licensing some of the hottest movie products, Santa Monica-based Activision posted record revenues and earnings in its 2005 fiscal year, ended Mar. 31. Profits hit $138 million, up 78%, on a 48% increase in sales, to $1.4 billion. Behind those numbers were a slew of smart partnerships: Deals with Dreamworks and Marvel churn out brand-name hits like Shrek, Spider-Man, and Madagascar, which Activision turns into games for PCs, Microsoft's Xbox, and Playstation 2.
Add in its home-grown Tony Hawk skateboard franchise that has produced $1 billion in sales, and Activision has become a potential acquisition target for entertainment giants looking to diversify into the fast-growing video-game industry. The only bump in an otherwise smooth year: Company insiders spooked investors earlier this year by selling off stock en mass, but the company's lineup of brand name properties is a key to future growth as the industry begins its periodic change to faster, better, and more sophisticated game consoles.
|Return on Equity||12.6%|
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All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
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