Take-Two News Release

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Take-Two Interactive Software, Inc. Reports Fourth Quarter and Fiscal 2007 Financial Results
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    Fourth Quarter Bottom Line Exceeds Guidance; Net Loss Declines on
                  Revenue Growth and Reduced Expenses

    Company Reiterates Fiscal Year 2008 Guidance and Provides First
                           Quarter Guidance

NEW YORK--(BUSINESS WIRE)--Dec. 18, 2007--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its fourth quarter and fiscal year ended October 31, 2007.

Net revenue for the fourth quarter was $292.6 million, compared to $266.6 million for the same period of fiscal 2006. Fourth quarter sales were led by BioShock, NBA 2K8 and Carnival Games, all of which were new titles released this quarter, as well as Grand Theft Auto catalog titles. Distribution revenue rose year over year, as next generation hardware sales were fueled by the strength of new front-line software titles, along with robust demand for Wii products.

Net loss for the fourth quarter was $7.1 million or $0.10 per share, compared to a net loss of $14.0 million or $0.20 per share in the fourth quarter of fiscal 2006.

The fourth quarter 2007 results include $4.8 million in stock-based compensation expenses ($0.06 per share); $4.5 million in business reorganization costs ($0.06 per share), including a $3.1 million loss related to the sale of Joytech ($0.04 per share); and $1.5 million in expenses related to unusual legal matters ($0.02 per share). Results for the fourth quarter of 2006 included $6.8 million in stock-based compensation expenses ($0.08 per share); $5.5 million in expenses related to unusual legal matters ($0.06 per share); and $2.3 million in expenses primarily related to studio closures ($0.03 per share).

Non-GAAP net income was $3.4 million or $0.05 per share in the fourth quarter of 2007, compared to a net loss of $1.8 million or $0.03 per share in the fourth quarter of 2006. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on Non-GAAP items.)

Business Highlights

Among the significant recent business developments, Take-Two noted the following:

    --  2K Games' wholly owned and internally developed BioShock for
        Xbox 360 and Games for Windows(R) has shipped over 2 million
        units worldwide since its launch in late August. This
        critically acclaimed title has received numerous accolades,
        including Game of the Year from the British Academy of Film
        and Television Arts (BAFTA), and from the Associated Press.
        Additionally, the title won Game of the Year, Best Xbox 360
        Game and Best Original Score at the 2007 Spike TV Video Game
        Awards on December 9th.

    --  Carnival Games, a wholly owned and internally developed title
        for Nintendo's Wii(TM), has shipped over 500,000 units since
        its debut in late August. 2K Play will be bringing this
        popular title to Nintendo DS(TM) in fiscal 2008.

    --  The Company closed on an expanded $140 million senior secured
        revolving credit facility.

    --  2K announced the formation of 2K Marin, a new development
        studio in Novato, California, which will develop original
        intellectual property, as well as co-develop products with
        other 2K studios around the world.

    --  Gary Dale was named Executive Vice President of Take-Two,
        responsible for business development and optimizing sales and
        distribution activities. He had previously served as Chief
        Operating Officer of Rockstar Games.

Strauss Zelnick, Chairman of Take-Two, stated, "Fiscal 2007 was a year of progress for Take-Two, capped by better-than-expected bottom line financial performance in the fourth quarter. The Company has benefited from initiatives to streamline operations and improve our cost structure, while continuing to expand our portfolio of powerful video game franchises. As a result of this progress, Take-Two today is sharply focused on its core publishing business and is operating more productively and efficiently, while continuing to foster the extraordinary creative talent of our development teams. We are fully committed to building on this solid foundation to produce great entertainment and to enhance shareholder value."

Ben Feder, Chief Executive Officer of Take-Two, added, "Take-Two enters fiscal 2008 with the strongest, most diverse product lineup in our history - much of it internally developed and owned IP - which positions us well for the continued growth of the interactive entertainment market. We are building on our existing franchises while creating new hits such as the award-winning BioShock and Carnival Games. Our releases for the coming year include six titles that have sold over one million units in earlier versions, ranging from Grand Theft Auto IV, shipping in the second quarter of fiscal 2008, to Midnight Club: Los Angeles, Bully: Scholarship Edition, Sid Meier's Civilization: Revolution, Major League Baseball 2K8 and NBA 2K9. We'll also release several new brands, including Borderlands and Don King Presents: Prizefighter, as well as Nick Jr. titles based on our partnership with Nickelodeon."

Fiscal Year 2007 Results

Net revenues were $981.8 million for the fiscal year ended October 31, 2007, compared to $1.038 billion in fiscal 2006. Net loss for fiscal 2007 was $138.4 million or $1.93 per share, compared to $184.9 million or $2.60 per share in fiscal 2006.

Fiscal 2007 results include $17.3 million in stock-based compensation expenses ($0.24 per share); $23.6 million in business reorganization costs ($0.32 per share), which included a $3.1 million loss related to the sale of Joytech ($0.04 per share); and $16.7 million in expenses related to unusual legal matters ($0.23 per share). Results for fiscal 2006 included $21.9 million in stock-based compensation expenses ($0.19 per share); $32.2 million in expenses primarily related to studio closures ($0.34 per share); and $6.9 million in expenses related to unusual legal matters ($0.06 per share). Fiscal 2006 results also reflected a non-cash charge of $59.5 million ($0.84 per share) to record a valuation allowance on deferred tax assets.

Non-GAAP net loss was $81.0 million or $1.13 per share in fiscal 2007, versus $84.0 million or $1.18 per share in the comparable period of 2006. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on Non-GAAP items.)

Financial Guidance

The Company is providing guidance for the first quarter ending January 31, 2008 and reiterating its guidance for the fiscal year ending October 31, 2008 as follows:

                             Revenue*             Non-GAAP EPS (a)
                      ----------------------- ------------------------
 First quarter ending       $175 to $225         $(0.50) to $(0.60)
            1/31/2008

   Fiscal year ending     $1,100 to $1,400       $1.30 to $1.50 (b)
           10/31/2008

* Dollars in millions

(a) The Company's non-GAAP EPS estimates for the first quarter ending
 January 31, 2008 and fiscal year ending October 31, 2008 exclude
 approximately $0.07 and $0.45 per share, respectively, of stock-based
 compensation expenses; and approximately $0.02 and $0.05 per share,
 respectively, of business reorganization charges and expenses related
 to unusual legal matters. The Company's stock-based compensation
 expense for the first quarter and fiscal 2008 reflects the cost of
 approximately two million stock options that are subject to variable
 accounting. Actual expense to be recorded in connection with these
 options is dependent upon several factors, including future changes
 in the Company's stock price.

(b) 2008 fiscal year EPS estimates reflect tax expense on
 international operations only.

Key assumptions and dependencies underlying the Company's guidance include continued consumer acceptance of the Xbox 360(R) video game and entertainment system from Microsoft, PLAYSTATION(R)3 computer entertainment system and Wii(TM) home video game system from Nintendo; the ability to develop and publish products that capture market share for these next generation systems while continuing to leverage opportunities on legacy platforms; as well as the timely delivery of the titles detailed in this release.

Product Pipeline

The following titles shipped during the first quarter of 2008:

Title                                    Platform
----------------------------------------------------------------------

College Hoops 2K8                        Xbox 360, PS3, PS2
Dora the Explorer: Dora Saves the
 Mermaids(TM)                            DS
Go, Diego, Go!: Safari Rescue(TM)        DS
Deal or No Deal: Secret Vault Games      PC
Grand Theft Auto: Vice City Stories
 (Japan)                                 PS2, PSP

Take-Two's lineup announced to date for the remainder of fiscal 2008
 includes the following titles:

Title                                    Platform
----------------------------------------------------------------------

                                         Xbox 360, PS3, Games for
Borderlands(TM)                           Windows(R)
Bully: Scholarship Edition               Xbox 360, Wii
Carnival Games                           DS
Don King Presents: Prizefighter          Xbox 360, Wii, DS
Dora the Explorer: Dora Saves the
 Mermaids(TM)                            PS2
Go, Diego, Go!: Safari Rescue(TM)        Wii, PS2
Grand Theft Auto IV                      Xbox 360, PS3
Grand Theft Auto IV episodic content     Xbox 360
Major League Baseball(R) 2K8             Multiple platforms
Midnight Club: Los Angeles               Xbox 360, PS3
NBA(R) 2K9                               Multiple platforms
NHL(R) 2K9                               Multiple platforms
Sid Meier's Civilization(R)
 Revolution(TM)                          Xbox 360, PS3, DS
Top Spin 3                               Xbox 360, PS3, Wii

Conference Call

Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company also uses non-GAAP measures of financial performance that exclude certain non-recurring or non-cash items. Non-GAAP gross profit, operating income (loss), net income (loss) and basic and diluted earnings (loss) per share are measures that exclude certain non-recurring or non-cash items and should be considered in addition to results prepared in accordance with GAAP, and are not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. These non-GAAP financial measures may be different from similarly titled measures used by other companies.

The non-GAAP measures exclude the following items from the Company's statements of operations:

    --  Business reorganization, restructuring and related expenses,
        including losses on sale of subsidiaries

    --  Stock-based compensation

    --  Professional fees and expenses associated with the Company's
        stock options investigation and certain other unusual
        regulatory and legal matters

    --  Non-cash charges related to asset write-offs

    --  Severance, relocation and other expenses outside of the
        Company's planned business reorganization initiatives,
        primarily related to certain studio closures in the 2006
        periods

    --  Charge recorded to income tax expense for a valuation
        allowance, reflecting the uncertain utilization of deferred
        tax assets

    --  Income tax effects of the items listed above

In addition, the Company may consider whether other significant non-recurring items that arise in the future should also be excluded from the non-GAAP financial measures it uses.

The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, are important in gaining an understanding of the Company's ongoing business. These non-GAAP financial measures also provide for comparative results from period to period. In addition, the Company believes it is appropriate to exclude certain items as follows:

Business reorganization, restructuring and related expenses

In March 2007, the Company's stockholders elected a new slate of members to Take-Two's Board of Directors, who immediately removed the Company's former President and Chief Executive Officer. Subsequently, the Company's former Chief Financial Officer resigned. As a result of these actions and the implementation of a business reorganization plan, the Company incurred significant costs in the three months and year ended October 31, 2007 to reduce headcount, relocate employees and consolidate sales and operational functions. In addition, certain intellectual property was impaired and written off as a component of cost of good sold in the year ended October 31, 2007, based on a determination made by the newly appointed management team.

In September 2007, the Company sold substantially all of the net assets, primarily inventory and accounts receivable, of its wholly owned Joytech video game accessories subsidiary for approximately $3.6 million in cash. The disposition of Joytech did not involve a significant amount of assets or materially impact the comparability of the Company's operating results. The Company recorded a loss of $3.1 million related to the sale of Joytech.

The Company expects that additional business reorganization, restructuring and related costs will be recorded in the 2008 fiscal year. Such costs are expected to relate to severance, asset write-offs and associated professional fees. The Company does not engage in reorganization activities on a regular basis and therefore believes it is appropriate to exclude business reorganization expenses from its non-GAAP financial measures.

Stock-based compensation

The Company does not consider stock-based compensation charges when evaluating business performance and management does not contemplate stock-based compensation expense in their short and long-term operating plans. Furthermore, executive and management incentive compensation plans are generally based on measures that exclude the impact of stock-based compensation. The Company places greater emphasis on shareholder dilution than accounting charges when assessing the impact of stock-based equity awards.

Professional fees and expenses associated with the Company's stock options investigation and certain other unusual regulatory and legal matters

The Company incurred significant legal and other professional fees associated with both the investigation of stock option grants and the Company's responses to the New York County District Attorney's subpoenas. One of management's primary objectives is to bring conclusion to its regulatory matters. The Company continues to incur substantial expenses for professional fees and has accrued for legal settlements that are outside its ordinary course of business. As a result, the Company has excluded such expenses from its non-GAAP financial measures.

Non-cash charges related to asset write-offs

In 2006, impairment charges were recorded in connection with studio closings to write-off software development costs related to several titles in development. The impairment charges were based on an assessment of the future recoverability of capitalized software balances related to these titles and the determination that these titles were unlikely to recover capitalized costs given a change in sales expectations as a result of weaker market conditions, the closure and anticipated closure of development studios, uncertainty involved in the console transition and historical performance of the titles. This charge was recorded as a component of cost of goods sold.

In addition, impairment charges were incurred related to the write-off of certain trademarks, acquired intangibles, goodwill and other assets based on management's assessment of the future value of these assets, including future business prospects and estimated cash flows to be derived from them. These charges were recorded in depreciation and amortization expense and impairment of long lived assets.

The Company believes these charges were each based on a unique set of business objectives and circumstances, and therefore believes it is appropriate to exclude these non-cash charges related to asset write-offs from its non-GAAP financial measures.

Severance, relocation and other

In connection with certain studio closures in 2006, the Company incurred severance and other costs. The Company also relocated its European headquarters to Geneva. The Company does not regularly close development studios and does not plan to move its European headquarters, and therefore believes it is appropriate to exclude these expenses from its non-GAAP financial measures. These costs were recorded in research and development and general and administrative expenses.

Charge for tax valuation allowance

In July 2006, the Company recorded income tax expense for a valuation allowance, to reflect the uncertain utilization of deferred tax assets relating to net operating losses carried forward from prior periods and deductible temporary differences. This charge represents the income tax impact of the Company's aggregate net operating losses and temporary differences existing at the beginning of the period.

EBITDA and Adjusted EBITDA

Earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA") is a financial measure not calculated and presented in accordance with accounting principles generally accepted in the United States. Management uses EBITDA adjusted for business reorganization and related expenses ("Adjusted EBITDA"), among other measures, in evaluating the performance of the Company's business units. Adjusted EBITDA is also a significant component of the Company's incentive compensation plans. Adjusted EBITDA should not be considered in isolation or as a substitute for net income/(loss) prepared in accordance with GAAP.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a global developer, marketer, distributor and publisher of interactive entertainment software games for the PC, PLAYSTATION(R)3 and PlayStation(R)2 computer entertainment systems, PSP(R) (PlayStation(R)Portable) system, Xbox 360(R) and Xbox(R) video game and entertainment systems from Microsoft, Wii(TM), Nintendo GameCube(TM), Nintendo DS(TM) and Game Boy(R) Advance. The Company publishes and develops products through its wholly owned labels Rockstar Games, 2K Games, 2K Sports and 2K Play; and distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. Take-Two's common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at www.take2games.com.

All trademarks and copyrights contained herein are the property of their respective holders.

Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks of the Microsoft group of companies.

"PlayStation", "PLAYSTATION", "PSP" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Memory Stick Duo(TM) may be required (sold separately).

(TM), (R), Game Boy Advance, Nintendo GameCube, Nintendo DS and the Wii logo are trademarks of Nintendo. (C) 2006 Nintendo.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include the matters relating to the Special Committee's investigation of the Company's stock option grants and the restatement of our consolidated financial statements. The investigation and conclusions of the Special Committee may result in claims and proceedings relating to such matters, including previously disclosed shareholder and derivative litigation and actions by the Securities and Exchange Commission and/or other governmental agencies and negative tax or other implications for the Company resulting from any accounting adjustments or other factors. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2006, and in the Company's Form 10-Q for the third quarter ended July 31, 2007 in the section entitled "Risk Factors."

         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
               (in thousands, except per share amounts)

                            Three months ended   For the Years Ended
                                October 31,           October 31,
                            ------------------- ----------------------
                              2007      2006       2007       2006
                            --------- --------- ---------- -----------

Net revenue                 $292,600  $266,556  $ 981,791  $1,037,840
--------------------------- --------- --------- ---------- -----------

Cost of goods sold:
Product costs                133,808   131,723    511,088     538,761
Software development costs
 and royalties                42,695    34,165    136,485     193,539
Internal royalties            11,002     9,857     28,892      40,413
Licenses                      15,443     9,012     58,569      52,763
--------------------------- --------- --------- ---------- -----------
Total cost of goods sold     202,948   184,757    735,034     825,476
--------------------------- --------- --------- ---------- -----------

Gross profit                  89,652    81,799    246,757     212,364

Selling and marketing         32,246    37,827    130,652     139,250
General and administrative    35,000    37,597    148,788     154,015
Research and development      11,159    13,046     48,455      64,258
Business reorganization and
 related                       1,405         -     17,467           -
Impairment of goodwill and
 long-lived assets                 -       830          -      15,608
Depreciation and
 amortization                  6,706     6,763     27,449      26,399
--------------------------- --------- --------- ---------- -----------
Total operating expenses      86,516    96,063    372,811     399,530
--------------------------- --------- --------- ---------- -----------
Income (loss) from
 operations                    3,136   (14,264)  (126,054)   (187,166)
Loss on sale and
 deconsolidation (1)          (4,469)        -     (4,469)          -
Interest and other, net         (324)    1,228      2,308       2,684
--------------------------- --------- --------- ---------- -----------
Loss before income taxes      (1,657)  (13,036)  (128,215)   (184,482)
Provision for income taxes     5,406       979     10,191         407
--------------------------- --------- --------- ---------- -----------
Net loss                    $ (7,063) $(14,015) $(138,406) $ (184,889)
=========================== ========= ========= ========== ===========

Basic and diluted loss per
 share                      $  (0.10) $  (0.20) $   (1.93) $    (2.60)
=========================== ========= ========= ========== ===========

Basic and diluted weighted
 average shares outstanding   72,321    71,199     71,860      71,012
===================================== ========= ========== ===========


                            Three months ended   For the Years Ended
                                October 31,           October 31,
                            ------------------- ----------------------
OTHER INFORMATION             2007      2006       2007       2006
--------------------------- --------- --------- ---------- -----------

Total revenue mix
Publishing                        75%       76%        70%         73%
Distribution                      25%       24%        30%         27%

Geographic revenue mix
North America                     74%       66%        75%         69%
International                     26%       34%        25%         31%

Publishing platform revenue
 mix
Microsoft Xbox 360                44%       17%        30%         23%
PC                                19%       13%        14%         17%
Sony PlayStation 2                14%       32%        26%         30%
Nintendo Wii                      11%        0%         5%          0%
Sony PLAYSTATION 3                 5%        0%        10%          0%
Sony PSP                           4%       29%        10%         18%
Accessories and other              2%        3%         2%          4%
Nintendo Handhelds                 1%        1%         1%          2%
Microsoft Xbox                     0%        5%         2%          6%


(1) Reflects $3,080 loss on the sale of Joytech, a video game
 accessories company; and $1,389 loss on the deconsolidation of Blue
 Castle Games, Inc., which previously was accounted for as a wholly
 owned subsidiary in accordance with FIN 46(R).
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
               (in thousands, except per share amounts)

                                                       October 31,
                                                    ------------------
                                                      2007      2006
                                                    --------- --------
                      ASSETS
Current assets:
 Cash and cash equivalents                          $ 77,757  $132,480
 Accounts receivable, net of allowances of $63,324
  and $91,509 at October 31, 2007 and October 31,
  2006, respectively                                 104,937   143,199
 Inventory                                            99,331    95,520
 Software development costs and licenses             141,441    85,207
 Prepaid taxes and taxes receivable                   40,316    60,407
 Prepaid expenses and other                           34,741    28,060
--------------------------------------------------- --------- --------
     Total current assets                            498,523   544,873
--------------------------------------------------- --------- --------

 Fixed assets, net                                    44,986    47,496
 Software development costs and licenses, net of
  current portion                                     34,465    31,354
 Goodwill                                            204,845   187,681
 Other intangibles, net                               31,264    43,248
 Other assets                                         17,060    14,154
--------------------------------------------------- --------- --------
     Total assets                                   $831,143  $868,806
=================================================== ========= ========

       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                   $128,782  $123,947
 Accrued expenses and other current liabilities      146,835   128,282
 Deferred revenue                                     36,544    11,317
--------------------------------------------------- --------- --------
     Total current liabilities                       312,161   263,546
--------------------------------------------------- --------- --------
 Deferred revenue                                     25,000    50,000
 Line of credit                                       18,000         -
 Other long-term liabilities                           4,828     4,868
--------------------------------------------------- --------- --------
     Total liabilities                               359,989   318,414
--------------------------------------------------- --------- --------
Commitments and contingencies

Stockholders' equity:
 Common stock, $.01 par value, 100,000 shares            743       727
  authorized; 74,273 and 72,745 shares issued and
  outstanding at October 31, 2007 and October 31,
  2006, respectively
 Additional paid-in capital                          513,297   482,104
 Retained earnings (accumulated deficit)             (77,747)   60,659
 Accumulated other comprehensive income               34,861     6,902
--------------------------------------------------- --------- --------
     Total stockholders' equity                      471,154   550,392
--------------------------------------------------- --------- --------

--------------------------------------------------- --------- --------
     Total liabilities and stockholders' equity     $831,143  $868,806
=================================================== ========= ========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (in thousands)

                                                 For the Years Ended
                                                      October 31,
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------
Operating activities:
 Net loss                                        $(138,406) $(184,889)
 ----------------------------------------------- ---------- ----------
 Adjustments to reconcile net loss to net cash
  provided by (used for) operating activities:
  Amortization and write-off of software
   development costs and licenses                  109,891    147,832
  Depreciation and amortization of long-lived
   assets                                           27,449     26,399
  Impairment of goodwill and long-lived assets           -     15,608
  Amortization and write-off of intellectual
   property                                          8,626     10,500
  Stock-based compensation                          17,329     21,931
  Provision (benefit) for deferred income taxes     (1,718)    17,360
  Foreign currency transaction gain and other       (1,656)    (2,070)
  Loss on sale and deconsolidation                   4,469          -
 Changes in assets and liabilities, net of
  effect from purchases and disposal of
  businesses:
  Accounts receivable, net                          39,159     56,651
  Inventory                                        (10,203)    40,707
  Software development costs and licenses         (163,859)  (143,248)
  Prepaid expenses, other current and other non-
   current assets                                   18,270    (30,086)
  Accounts payable, accrued expenses, deferred
   revenue and other liabilities                    26,604     66,667
 ----------------------------------------------- ---------- ----------
 Total adjustments                                  74,361    228,251
 ----------------------------------------------- ---------- ----------
 Net cash (used for) provided by operating
  activities                                       (64,045)    43,362
 ----------------------------------------------- ---------- ----------

Investing activities:
 Purchase of fixed assets                          (21,594)   (25,084)
 Cash received from sale of business                 2,778          -
 Payments for purchases of businesses, net of
  cash acquired                                     (5,795)      (191)
 ----------------------------------------------- ---------- ----------
 Net cash used for investing activities            (24,611)   (25,275)
 ----------------------------------------------- ---------- ----------

Financing activities:
 Proceeds from exercise of options                   9,503      2,808
 Borrowings on line of credit                       18,000          -
 Payment of debt issuance costs                     (1,809)         -
 Excess tax benefit on exercise of stock options         -        163
 ----------------------------------------------- ---------- ----------
 Net cash provided by financing activities          25,694      2,971
 ----------------------------------------------- ---------- ----------
 Effects of exchange rates on cash and cash
  equivalents                                        8,239      4,227
 ----------------------------------------------- ---------- ----------
 Net (decrease) increase in cash and cash
  equivalents                                      (54,723)    25,285
 Cash and cash equivalents, beginning of year      132,480    107,195
 ----------------------------------------------- ---------- ----------
 Cash and cash equivalents, end of year          $  77,757  $ 132,480
 =============================================== ========== ==========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
               (in thousands, except per share amounts)

                               Non-GAAP Reconciling Items
                            --------------------------------
                                                             Non-GAAP
                    Three    Business   Profess-               three
                   months   reorgani-    ional      Stock-    months
                    ended     zation    fees and     based     ended
                   October     and       legal      compen-   October
                  31, 2007   related    matters     sation   31, 2007
                  ----------------------------------------------------
Net revenue       $292,600  $       -  $      -    $     -   $292,600
----------------- --------- ---------- ----------  --------- ---------

Cost of goods
 sold:
Product costs      133,808          -         -          -    133,808
Software
 development
 costs and
 royalties          42,695          -         -     (1,008)    41,687
Internal
 royalties          11,002          -         -          -     11,002
Licenses            15,443          -         -          -     15,443
----------------- --------- ---------- ----------  --------- ---------
Total cost of
 goods sold        202,948          -         -     (1,008)   201,940
----------------- --------- ---------- ----------  --------- ---------

Gross profit        89,652          -         -      1,008     90,660

Selling and
 marketing          32,246          -         -       (353)    31,893
General and
 administrative     35,000          -    (1,546)    (2,636)    30,818
Research and
 development        11,159          -         -       (757)    10,402
Business
 reorganization
 and related         1,405     (1,405)        -          -          -
Impairment of
 goodwill and
 long-lived
 assets                  -          -         -          -          -
Depreciation and
 amortization        6,706          -         -          -      6,706
----------------- --------- ---------- ----------  --------- ---------
Total operating
 expenses           86,516     (1,405)   (1,546)    (3,746)    79,819
----------------- --------- ---------- ----------  --------- ---------
Income from
 operations          3,136      1,405     1,546      4,754     10,841
Loss on sale and
 deconsolidation    (4,469)     3,080         -          -     (1,389)
Interest and
 other, net           (324)         -         -          -       (324)
----------------- --------- ---------- ----------  --------- ---------
Income (loss)
 before income
 taxes              (1,657)     4,485     1,546      4,754      9,128
Provision
 (benefit) for
 income taxes        5,406        322         -          -      5,728
--------------------------- ---------- ----------  --------- ---------
Net income (loss) $ (7,063) $   4,163  $  1,546    $ 4,754   $  3,400
================= ========= ========== ==========  ========= =========

Basic income
 (loss) per
 share*           $  (0.10) $    0.06  $   0.02    $  0.07   $   0.05
================= ========= ========== ==========  ========= =========
Diluted income
 (loss) per
 share*           $  (0.10) $    0.06  $   0.02    $  0.06   $   0.05
================= ========= ========== ==========  ========= =========
Basic weighted
 average shares
 outstanding        72,321                                     72,321
================= =========                                  =========
Diluted weighted
 average shares
 outstanding        72,321                                     73,527
================= =========                                  =========


EBITDA:
Income (loss)
 before income
 taxes            $ (1,657)                                  $  9,128
Interest income        324                                        324
Depreciation and
 amortization        6,706                                      6,706
                  ---------                                  ---------
EBITDA            $  5,373                                   $ 16,158
Add: Business
 reorganization
 and related         1,405                                          -
Loss on sale and
 deconsolidation     4,469                                      1,389
                  ---------                                  ---------
Adjusted EBITDA   $ 11,247                                   $ 17,547
                  =========                                  =========


*Basic and diluted income (loss) per share may not add due to rounding
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
               (in thousands, except per share amounts)


                                     Non-GAAP Reconciling Items
                               ---------------------------------------
                      Three
                      months      Asset                 Professional
                       ended    impairments Severance,    fees and
                      October   and write-   relocation    legal
                      31, 2006     offs      and other     matters
                     -------------------------------------------------
Net revenue          $266,556        $   -     $     -      $     -
-------------------- --------- ------------ ----------- ------------

Cost of goods sold:
Product costs         131,723            -           -            -
Software development
 costs and royalties   34,165            -           -            -
Internal royalties      9,857            -           -            -
Licenses                9,012            -           -            -
-------------------- --------- ------------ ----------- ------------
Total cost of goods
 sold                 184,757            -           -            -
-------------------- --------- ------------ ----------- ------------

Gross profit           81,799            -           -            -

Selling and
 marketing             37,827            -           -            -
General and
 administrative        37,597            -      (1,568)      (5,455)
Research and
 development           13,046            -        (189)           -
Business
 reorganization and
 related                    -            -           -            -
Impairment of
 goodwill and long-
 lived assets             830         (500)          -            -
Depreciation and
 amortization           6,763            -           -            -
-------------------- --------- ------------ ----------- ------------
Total operating
 expenses              96,063         (500)     (1,757)      (5,455)
-------------------- --------- ------------ ----------- ------------
Income (loss) from
 operations           (14,264)         500       1,757        5,455
Loss on sale and
 deconsolidation            -            -           -            -
Interest income and
 other, net             1,228            -           -            -
-------------------- --------- ------------ ----------- ------------
Income (loss) before
 income taxes         (13,036)         500       1,757        5,455
Provision (benefit)
 for income taxes         979            -         288          895
------------------------------ ------------ ----------- ------------
Net loss             $(14,015)       $ 500     $ 1,469      $ 4,560
==================== ========= ============ =========== ============

Basic and diluted
 loss per share*     $  (0.20)       $0.01     $  0.02      $  0.06
==================== ========= ============ =========== ============

Basic and diluted
 weighted average
 shares outstanding    71,199
==================== =========

EBITDA:
Income (loss) before
 income taxes        $(13,036)
Interest income        (1,228)
Depreciation and
 amortization           6,763
                     ---------
EBITDA               $ (7,501)
Add: Business
 reorganization and
 related                    -
                     ---------
Adjusted EBITDA      $ (7,501)
                     =========



                                  Non-GAAP Reconciling Items
                                 ---------------------------
                                                             Non-GAAP
                                                               three
                                                  Charge for  months
                                                     tax       ended
                                    Stock-based    valuation  October
                                     compensation  allowance  31, 2006
                                 -------------------------------------
Net revenue                              $     -    $     -  $266,556
-------------------------------- ---------------- ---------- ---------

Cost of goods sold:
Product costs                                  -          -   131,723
Software development costs and
 royalties                                  (526)         -    33,639
Internal royalties                             -          -     9,857
Licenses                                       -          -     9,012
-------------------------------- ---------------- ---------- ---------
Total cost of goods sold                    (526)         -   184,231
-------------------------------- ---------------- ---------- ---------

Gross profit                                 526          -    82,325

Selling and marketing                       (314)         -    37,513
General and administrative                (3,213)         -    27,361
Research and development                  (2,722)         -    10,135
Business reorganization and
 related                                       -          -         -
Impairment of goodwill and long-
 lived assets                                  -          -       330
Depreciation and amortization                  -          -     6,763
-------------------------------- ---------------- ---------- ---------
Total operating expenses                  (6,249)         -    82,102
-------------------------------- ---------------- ---------- ---------
Income (loss) from operations              6,775          -       223
Loss on sale and deconsolidation               -          -         -
Interest income and other, net                 -          -     1,228
-------------------------------- ---------------- ---------- ---------
Income (loss) before income
 taxes                                     6,775          -     1,451
Provision (benefit) for income
 taxes                                     1,112          -     3,274
------------------------------------------------- ---------- ---------
Net loss                                 $ 5,663    $     -  $ (1,823)
================================ ================ ========== =========

Basic and diluted loss per
 share*                                  $  0.08    $     -  $  (0.03)
================================ ================ ========== =========

Basic and diluted weighted
 average shares outstanding                                    71,199
================================                             =========

EBITDA:
Income (loss) before income
 taxes                                                       $  1,451
Interest income                                                (1,228)
Depreciation and amortization                                   6,763
                                                             ---------
EBITDA                                                       $  6,986
Add: Business reorganization and
 related                                                            -
                                                             ---------
Adjusted EBITDA                                              $  6,986
                                                             =========


*Basic and diluted loss per share may not add due to rounding
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
               (in thousands, except per share amounts)

                              Non-GAAP Reconciling Items
                            -------------------------------
                                                             Non-GAAP
                  For the    Business  Profess-              for the
                    year    reorgani-    ional     Stock-      year
                   ended      zation   fees and    based      ended
                  October      and       legal    compen-    October
                  31, 2007   related    matters    sation    31, 2007
                 -----------------------------------------------------
Net revenue      $ 981,791  $       -  $      -  $       -   $981,791
---------------- ---------- ---------- --------- ---------- ----------

Cost of goods
 sold:
Product costs      511,088     (5,164)        -          -    505,924
Software
 development
 costs and
 royalties         136,485          -         -     (3,216)   133,269
Internal
 royalties          28,892          -         -          -     28,892
Licenses            58,569          -         -          -     58,569
---------------- ---------- ---------- --------- ---------- ----------
Total cost of
 goods sold        735,034     (5,164)        -     (3,216)   726,654
---------------- ---------- ---------- --------- ---------- ----------

Gross profit       246,757      5,164         -      3,216    255,137

Selling and
 marketing         130,652          -         -     (1,232)   129,420
General and
 administrative    148,788          -   (16,726)    (7,080)   124,982
Research and
 development        48,455          -         -     (3,735)    44,720
Business
 reorganization
 and related        17,467    (15,401)        -     (2,066)         -
Impairment of
 goodwill and
 long-lived
 assets                  -          -         -          -          -
Depreciation and
 amortization       27,449          -         -          -     27,449
---------------- ---------- ---------- --------- ---------- ----------
Total operating
 expenses          372,811    (15,401)  (16,726)   (14,113)   326,571
---------------- ---------- ---------- --------- ---------- ----------
Loss from
 operations       (126,054)    20,565    16,726     17,329    (71,434)
Loss on sale and
 deconsolidation    (4,469)     3,080         -          -     (1,389)
Interest and
 other, net          2,308          -         -          -      2,308
---------------- ---------- ---------- --------- ---------- ----------
Loss before
 income taxes     (128,215)    23,645    16,726     17,329    (70,515)
Provision
 (benefit) for
 income taxes       10,191        322         -          -     10,513
---------------- ---------- ---------- --------- ---------- ----------
Net loss         $(138,406) $  23,323  $ 16,726  $  17,329   $(81,028)
================ ========== ========== ========= ========== ==========

Basic and
 diluted loss
 per share*      $   (1.93) $    0.32  $   0.23  $    0.24   $  (1.13)
================ ========== ========== ========= ========== ==========

Basic and
 diluted
 weighted
 average shares
 outstanding        71,860                                     71,860
================ ==========                                 ==========

EBITDA:
Loss before
 income taxes    $(128,215)                                  $(70,515)
Interest income     (2,570)                                    (2,570)
Depreciation and
 amortization       27,449                                     27,449
                 ----------                                 ----------
EBITDA            (103,336)                                   (45,636)
Add: Business
 reorganization
 and related        22,631                                          -
Loss on sale and
 deconsolidation     4,469                                      1,389
                 ----------                                 ----------
Adjusted EBITDA  $ (76,236)                                  $(44,247)
                 ==========                                 ==========


*Basic and diluted loss per share may not add due to rounding
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
               (in thousands, except per share amounts)


                                     Non-GAAP Reconciling Items
                               ---------------------------------------
                    For the       Asset                 Professional
                    year ended  impairments Severance,    fees and
                     October    and write-   relocation    legal
                     31, 2006      offs      and other     matters
                   ---------------------------------------------------
Net revenue        $1,037,840     $      -     $     -      $     -
------------------ ----------- ------------ ----------- ------------

Cost of goods
 sold:
Product costs         538,761       (1,128)          -            -
Software
 development costs
 and royalties        193,539      (11,913)          -            -
Internal royalties     40,413            -           -            -
Licenses               52,763            -           -            -
------------------ ----------- ------------ ----------- ------------
Total cost of
 goods sold           825,476      (13,041)          -            -
------------------ ----------- ------------ ----------- ------------

Gross profit          212,364       13,041           -            -

Selling and
 marketing            139,250            -           -            -
General and
 administrative       154,015            -      (4,195)      (6,861)
Research and
 development           64,258            -      (3,445)           -
Business
 reorganization
 and related                -            -           -            -
Impairment of
 goodwill and
 long-lived assets     15,608      (11,471)          -            -
Depreciation and
 amortization          26,399            -           -            -
------------------ ----------- ------------ ----------- ------------
Total operating
 expenses             399,530      (11,471)     (7,640)      (6,861)
------------------ ----------- ------------ ----------- ------------
Loss from
 operations          (187,166)      24,512       7,640        6,861
Loss on sale and
 deconsolidation            -            -           -            -
Interest and
 other, net             2,684            -           -            -
------------------ ----------- ------------ ----------- ------------
Loss before income
 taxes               (184,482)      24,512       7,640        6,861
Provision
 (benefit) for
 income taxes             407        5,158       3,022        2,713
------------------ ----------- ------------ ----------- ------------
Net loss           $ (184,889)    $ 19,354     $ 4,618      $ 4,148
================== =========== ============ =========== ============

Basic and diluted
 loss per share*   $    (2.60)    $   0.27     $  0.07      $  0.06
==================-=========== ============ =========== ============

Basic and diluted
 weighted average
 shares
 outstanding           71,012
================== ===========

EBITDA:
Loss before income
 taxes             $ (184,482)
Interest income        (2,684)
Depreciation and
 amortization          26,399
                   -----------
EBITDA               (160,767)
Add: Business
 reorganization
 and related                -
Adjusted EBITDA    $ (160,767)
                   ===========


                                Non-GAAP Reconciling Items
                               ---------------------------
                                                            Non-GAAP
                                                Charge for   for the
                                                   tax      year ended
                                  Stock-based    valuation   October
                                   compensation  allowance   31, 2006
                               ---------------------------------------
Net revenue                           $      -   $      -  $1,037,840
----------------------------------------------- ---------- -----------

Cost of goods sold:
Product costs                                -          -     537,633
Software development costs and
 royalties                              (1,263)         -     180,363
Internal royalties                           -          -      40,413
Licenses                                     -          -      52,763
----------------------------------------------- ---------- -----------
Total cost of goods sold                (1,263)         -     811,172
----------------------------------------------- ---------- -----------

Gross profit                             1,263          -     226,668

Selling and marketing                   (1,256)         -     137,994
General and administrative             (13,277)         -     129,682
Research and development                (6,135)         -      54,678
Business reorganization and
 related                                     -          -           -
Impairment of goodwill and
 long-lived assets                           -          -       4,137
Depreciation and amortization                -          -      26,399
----------------------------------------------- ---------- -----------
Total operating expenses               (20,668)         -     352,890
----------------------------------------------- ---------- -----------
Loss from operations                    21,931          -    (126,222)
Loss on sale and
 deconsolidation                             -          -           -
Interest and other, net                      -          -       2,684
----------------------------------------------- ---------- -----------
Loss before income taxes                21,931          -    (123,538)
Provision (benefit) for income
 taxes                                   8,673    (59,469)    (39,496)
----------------------------------------------- ---------- -----------
Net loss                              $ 13,258   $ 59,469  $  (84,042)
=============================================== ========== ===========

Basic and diluted loss per
 share*                               $   0.19   $   0.84  $    (1.18)
=============================================== ========== ===========

Basic and diluted weighted
 average shares outstanding                                    71,012
===============================                            ===========

EBITDA:
Loss before income taxes                                   $ (123,538)
Interest income                                                (2,684)
Depreciation and amortization                                  26,399
                                                           -----------
EBITDA                                                        (99,823)
Add: Business reorganization
 and related                                                        -
Adjusted EBITDA                                            $  (99,823)
                                                           ===========


*Basic and diluted loss per share may not add due to rounding

    CONTACT: Take-Two Interactive Software, Inc.
             Meg Maise (Corporate Press/Investor Relations)
             646-536-2932
             meg.maise@take2games.com

    SOURCE: Take-Two Interactive Software, Inc.