Company Asks Media to Use Non-GAAP Metric After SEC Ordered It Excluded From Financial Report

By:
Chris Gaetano
Published Date:
Aug 9, 2017
ShellGame

Video game company Activision Blizzard―known for hit titles like World of Warcraft, Starcraft and Overwatch―has been asking the media to report non-GAAP metrics that the SEC told them to stop using in their financial reports, according to MarketWatch. For years the company had included revenue deferrals from its non-GAAP numbers, however in May of 2016 the SEC warned that this calculation could potentially be misleading to investors and told the firm to cut it out. Activism Blizzard followed the order and now excludes the metric from its financial reports.

However MarketWatch said that the company then began directly contacting business journalists (including the author of this piece) asking that they use the figures the SEC forbade them to use in their own financial information. The author of the piece said that Activision Blizzard told her that the best way to view the results is adding back the deferrals of 27 cents a share to the non-GAAP figure of 65 cents, creating an adjusted EPS of 92 cents a share. Analysts have also been instructed to make such calculations as well.

MarketWatch noted that shares have surged 71 percent in 2017. 

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