Activision profits skyrocket on sales of 'Guitar Hero' and 'Call of Duty'

Strong demand for two of its franchise titles - "Guitar Hero III" and "Call of Duty 4" - sent fourth-quarter profits for Activision Inc. well beyond analyst estimates.

In the quarter, Activision earned $44.2 million, or 14 cents a share, almost triple the analyst estimates of 5 cents a share. Excluding charges related to stock options accounting, Activision would have earned 17 cents a share.

In the fourth quarter a year ago, the company lost $14.4 million, or 5 cents a share.

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Revenue nearly doubled, coming in at $602.5 million, up from $312.5 million a year ago.

Activision said in a release that the quarter was the most profitable non-holiday quarter in company history.

For the company's fiscal 2008, it earned $344.9 million, or $1.10 a share, on $2.9 billion in revenue. In fiscal 2007, the company earned $85.8 million, or 28 cents a share, on $1.5 billion in revenue.

The company also said in a release that its combination with Vivendi Games is on track. The deal,first announced in December 2007, will create a new company, Activision Blizzard.

Santa Monica-based Activision (NASDAQ: ATVI) is a developer, publisher and distributor of interactive entertainment and leisure products.