Take-Two News Release

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Take-Two Interactive Software, Inc. Reports Strong Second Quarter Fiscal 2008 Financial Results
    Top and Bottom Line Results Exceed High End of Guidance

    Company Raises Fiscal 2008 Guidance Significantly and Provides
                   Third and Fourth Quarter Guidance

NEW YORK--(BUSINESS WIRE)--June 5, 2008--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its second quarter ended April 30, 2008.

Net revenue for the second fiscal quarter was $539.8 million, compared to $205.4 million for the same quarter of fiscal 2007. Second quarter sales were led by the blockbuster, critically acclaimed Grand Theft Auto IV for Xbox 360(R) video game and entertainment system and PLAYSTATION(R)3 computer entertainment system.

Net income for the second quarter was $98.2 million or $1.29 per share, compared to a net loss of $51.2 million or $0.71 per share in the second quarter of fiscal 2007.

The second quarter results include $12.4 million in stock-based compensation expense ($0.16 per share); $3.8 million in professional fees and legal expenses, primarily related to Electronic Arts' unsolicited tender offer ($0.05 per share) and $0.9 million in business reorganization costs ($0.01 per share). Results for the second quarter of 2007 included $16.3 million of business reorganization and related costs due to the Company's management and board changes, legal expenses and other professional fees associated with the investigation of stock option grants, responses to the New York County District Attorney's subpoenas, and other legal matters ($0.22 per share), as well as $5.8 million in stock-based compensation expense ($0.08 per share).

Non-GAAP net income was $115.4 million or $1.52 per share in the second quarter, compared to a net loss of $29.2 million or $0.41 per share in the second quarter of 2007. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on non-GAAP items.)

For the six months ended April 30, 2008, net revenues were $780.3 million, compared to $482.8 million for the same period a year ago. Net income for the first half of fiscal 2008 was $60.2 million or $0.80 per share, compared to a loss of $72.8 million or $1.02 for the 2007 period. Results for the first six months of fiscal 2008 include $18.5 million in stock-based compensation expense ($0.25 per share); $5.3 million in professional fees and legal expenses, with the majority related to Electronic Arts' unsolicited tender offer ($0.07 per share) and $1.1 million in business reorganization costs ($0.01 per share). Results for the first six months of fiscal 2007 included $23.5 million of business reorganization and related costs due to the Company's management and board changes, legal expenses and other professional fees associated with the investigation of stock option grants, responses to the New York County District Attorney's subpoenas, and other legal matters ($0.33 per share), as well as $9.8 million in stock-based compensation expense ($0.14 per share).

Non-GAAP net income was $85.1 million or $1.14 per share in the first six months of 2008, versus a net loss of $39.5 million or $0.55 per share in the comparable period of 2007. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

Business Highlights

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

    --  Rockstar Games released the highly anticipated Grand Theft
        Auto IV on April 29, 2008. The title surpassed all-time
        entertainment records for day one and week one sales, with
        approximately 6 million units sold through globally in the
        first week at an estimated retail value of more than $500
        million. As of May 31, 2008, over 11 million units have been
        sold in to retailers and approximately 8.5 million units have
        been sold through to consumers.

    --  BioShock(R), a wholly owned and internally developed title for
        Xbox 360 and Games for Windows(R) shipped over 2.2 million
        units since its debut in late August. 2K Games will be
        bringing this popular title to the PLAYSTATION(R)3 this fall,
        and Universal Pictures is developing a feature film based on
        BioShock to be directed by Gore Verbinski, director of the
        Pirates of the Caribbean trilogy.

    --  Rockstar Games announced the acquisition of Mad Doc Software,
        one of the premier independent development studios in North
        America. The studio, renamed Rockstar New England, most
        recently worked with Rockstar on the Xbox 360 version of the
        critically acclaimed Bully: Scholarship Edition.

    --  Hubert Larenaudie was named President for Asia to head
        Take-Two's growth initiatives in the Asia Pacific region
        including expanding distribution of the Company's interactive
        entertainment products; developing a strong presence in Japan;
        and working to establish an online game operation, especially
        in China and Korea. He had previously served in senior roles
        at Electronic Arts and Vivendi.

"Take-Two's performance has exceeded expectations through the first half of fiscal 2008, clearly demonstrating the creative, operational and financial strength of our business," noted Strauss Zelnick, Chairman of Take-Two. "Our results reflected the extraordinary success of Grand Theft Auto IV, the value of our catalog of titles, and our ongoing initiatives to improve the efficiency of our operations. We look forward to continuing to enhance stockholder value by building on our broad portfolio of internally developed and owned interactive entertainment brands, leveraging the opportunities in the current industry cycle, and operating our business in an effective manner."

Ben Feder, Chief Executive Officer of Take-Two, added, "Based on the Company's stronger than expected results, we have increased our financial guidance for fiscal 2008 and are confident in our ability to continue to perform for the balance of the year. Furthermore, Take-Two is extremely well positioned in an industry that is experiencing explosive growth. We believe that our exceptional creative talent, diverse range of hit products, and the proven global demand for our titles will be the drivers of increasing value over time."

Financial Guidance

The Company is providing guidance for the third fiscal quarter ending July 31, 2008 and fourth fiscal quarter ending October 31, 2008 and is raising its guidance for the fiscal year ending October 31, 2008 as detailed below. Fiscal 2008 guidance reflects the release of the first installment of episodic content for Grand Theft Auto IV for Xbox 360 in the first quarter of fiscal 2009 instead of the fourth quarter of fiscal 2008 in order to provide a better balance in Take-Two's release schedule.

                             Revenue*           Non-GAAP EPS (a)(b)
                        -------------------  -------------------------
 Third quarter ending       $325 to $375          $0.45 to $0.55
            7/31/2008
Fourth quarter ending      $300 to $350           $0.10 to $0.20
           10/31/2008
   Fiscal year ending    $1,400 to $1,500          $1.65 to $1.85
           10/31/2008

* In millions
(a) The Company's non-GAAP EPS estimates for the third quarter ending
 July 31, 2008, and fourth quarter and fiscal year ending October 31,
 2008 exclude approximately $0.17, $0.18 and $0.59 per share,
 respectively, of stock-based compensation expense; and approximately
 $0.13, $0.01 and $0.23 per share, respectively, of professional fees
 and legal expenses related to unusual matters, including the
 Electronic Arts tender offer, and business reorganization costs. The
 Company's stock-based compensation expense for the third and fourth
 quarters and fiscal 2008 reflects the cost of approximately two
 million stock options issued to ZelnickMedia 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 Take-Two's stock price.

(b) EPS estimates reflect tax expense primarily for international
 operations.

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 current generation systems while continuing to leverage opportunities on prior generation platforms; as well as the timely delivery of the titles detailed in this release.

Product Pipeline

The following titles shipped during the second quarter of fiscal 2008:

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

Bully: Scholarship Edition              Xbox 360, Wii
Dora the Explorer: Dora Saves the
 Mermaids(TM)                           PS2
Go, Diego, Go!: Safari Rescue(TM)       Wii, PS2
Grand Theft Auto IV                     Xbox 360, PS3
Major League Baseball(R) 2K8            Xbox 360, PS3, Wii, PSP, PS2
Major League Baseball(R) 2K8 Fantasy
 All-Stars                              DS

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

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

BioShock(R)                                  PS3
Carnival Games(TM)                           DS
Carnival Games: Mini-Golf(TM)                Wii
Don King Presents: Prizefighter              Xbox 360, Wii, DS
Midnight Club: Los Angeles                   Xbox 360, PS3
Midnight Club: LA Remix                      PSP
MLB (R) Power Pros 2008                      Wii, PS2, DS
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, DS

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 uses non-GAAP measures of financial performance that exclude certain non-recurring or non-cash items. Non-GAAP gross profit, income (loss) from operations, net income (loss) and 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. They 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

    --  Stock-based compensation

    --  Professional fees and expenses associated with the tender
        offer by Electronic Arts Inc., the Company's stock options
        investigation and certain other unusual regulatory and legal
        matters

    --  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. Therefore, 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 year ended October 31, 2007 to reduce headcount, relocate employees and consolidate sales and operational functions.

The Company recorded additional business reorganization costs in the three and six months ended April 30, 2008, and expects that additional business reorganization, restructuring and related costs will be recorded in the remainder of 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 stockholder dilution than accounting charges when assessing the impact of stock-based equity awards.

Professional fees and expenses associated with the tender offer by Electronic Arts Inc., the Company's stock options investigation and certain other unusual regulatory and legal matters

The Company has incurred significant legal and investment banking expenses related to the tender offer launched by Electronic Arts Inc. on March 13, 2008 to acquire all of the Company's outstanding shares. Additionally, the Company has realized 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 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.

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 from, or as a substitute for, net income/(loss) prepared in accordance with GAAP.

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.

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, Windows, the Windows Vista Start button, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks of the Microsoft group of companies, and 'Games for Windows' and the Windows Vista Start button logo are used under license from Microsoft.

"PlayStation", "PLAYSTATION", and "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc.

    Wii and Nintendo DS are trademarks of Nintendo. (C) 2006 Nintendo.

    Important Legal Information

In connection with the tender offer commenced by Electronic Arts Inc., the Company has filed with the Securities Exchange Commission a Solicitation/Recommendation Statement on Schedule 14D-9. The Company's stockholders should read carefully the Solicitation/Recommendation Statement on Schedule 14D-9 (including any amendments or supplements thereto) prior to making any decisions with respect to Electronic Arts' tender offer because it contains important information. Free copies of the Solicitation/Recommendation Statement on Schedule 14D-9 and the related amendments or supplements thereto that the Company has filed with the SEC are available at the SEC's website at www.sec.gov. This communication does not constitute an offer to sell or invitation to purchase any securities or the solicitation of an offer to buy any securities, pursuant to Electronic Arts' tender offer or otherwise.

This press release may contain 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. Further risks and uncertainties associated with Electronic Arts' tender offer to acquire the Company's outstanding shares are as follows: the risk that key employees may pursue other employment opportunities due to concerns as to their employment security with the Company; the risk that the acquisition proposal will make it more difficult for the Company to execute its strategic plan and pursue other strategic opportunities; the risk that the future trading price of our common stock is likely to be volatile and could be subject to wide price fluctuations; and the risk that stockholder litigation in connection with Electronic Arts' tender offer, or otherwise, may result in significant costs of defense, indemnification and liability. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2007, in the section entitled "Risk Factors," as updated in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2008, in the section entitled "Risk Factors." All forward-looking statements are qualified by these cautionary statements and are made only as of the date they are made.

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

                               Three months ended   Six months ended
                                    April 30,           April 30,
                               ------------------- -------------------
                                 2008      2007      2008      2007
                               --------- --------- --------- ---------

Net revenue                    $539,810  $205,436  $780,252  $482,776
------------------------------ --------- --------- --------- ---------

Cost of goods sold:
Product costs                   185,043   105,679   333,195   269,822
Software development costs and
 royalties                       57,688    30,311    80,402    53,190
Internal royalties               52,653     4,875    58,797    14,354
Licenses                         22,875    18,717    31,873    26,441
------------------------------ --------- --------- --------- ---------
Total cost of goods sold        318,259   159,582   504,267   363,807
------------------------------ --------- --------- --------- ---------

Gross profit                    221,551    45,854   275,985   118,969

Selling and marketing            45,949    28,159    79,678    63,183
General and administrative       49,201    40,471    80,603    79,085
Research and development         14,828    11,936    30,638    26,086
Business reorganization and
 related                            944     8,962     1,106     8,962
Depreciation and amortization     7,516     7,076    13,925    13,737
------------------------------ --------- --------- --------- ---------
Total operating expenses        118,438    96,604   205,950   191,053
------------------------------ --------- --------- --------- ---------
Income (loss) from operations   103,113   (50,750)   70,035   (72,084)
Interest and other income
 (expense), net                    (830)    1,022      (982)    1,884
------------------------------ --------- --------- --------- ---------
Income (loss) before income
 taxes                          102,283   (49,728)   69,053   (70,200)
Income taxes                      4,061     1,521     8,828     2,597
------------------------------ --------- --------- --------- ---------
Net income (loss)              $ 98,222  $(51,249) $ 60,225  $(72,797)
============================== ========= ========= ========= =========

Earnings (loss) per share:
------------------------------ --------- --------- --------- ---------
Basic                          $   1.31  $  (0.71) $   0.81  $  (1.02)
Diluted                        $   1.29  $  (0.71) $   0.80  $  (1.02)
============================== ========= ========= ========= =========

Weighted average shares
 outstanding:
------------------------------ --------- --------- --------- ---------
Basic                            75,098    71,736    74,112    71,548
Diluted                          75,954    71,736    74,894    71,548
============================== ========= ========= ========= =========





                               Three months ended   Six months ended
                                    April 30,           April 30,
                               ------------------- -------------------
OTHER INFORMATION                2008      2007      2008      2007
------------------------------ --------- --------- --------- ---------

Total revenue mix
Publishing                           90%       75%       78%       65%
Distribution                         10%       25%       22%       35%

Geographic revenue mix
North America                        65%       73%       71%       75%
International                        35%       27%       29%       25%

Publishing revenue platform
 mix
Microsoft Xbox 360                   46%       21%       41%       18%
Sony PLAYSTATION 3                   36%       10%       31%        8%
Nintendo Wii                          6%        0%        9%        0%
Sony PlayStation 2                    6%       38%       10%       37%
Sony PSP                              3%       11%        5%       16%
PC                                    2%       12%        3%       12%
Nintendo Handhelds                    1%        2%        1%        1%
Other                                 0%        6%        0%        8%
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except per share amounts)

                                               ----------- -----------
                                                April 30,  October 31,
                                                  2008        2007
                                               ----------- -----------
                    ASSETS                     (Unaudited)
Current assets:
 Cash and cash equivalents                     $   72,918    $ 77,757
 Accounts receivable, net of allowances of
  $66,757 and $63,324 at April 30, 2008 and
  October 31, 2007, respectively                  362,765     104,937
 Inventory                                         91,821      99,331
 Software development costs and licenses          136,640     141,441
 Prepaid taxes and taxes receivable                24,738      40,316
 Prepaid expenses and other                        34,416      34,741
---------------------------------------------- ----------- -----------
     Total current assets                         723,298     498,523
---------------------------------------------- ----------- -----------

 Fixed assets, net                                 39,727      44,986
 Software development costs and licenses, net
  of current portion                               49,210      34,465
 Goodwill                                         237,251     204,845
 Other intangibles, net                            29,427      31,264
 Other assets                                      18,215      17,060
---------------------------------------------- ----------- -----------
     Total assets                              $1,097,128    $831,143
============================================== =========== ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                              $  185,530    $128,782
 Accrued expenses and other current
  liabilities                                     201,708     146,835
 Deferred revenue                                  39,857      36,544
---------------------------------------------- ----------- -----------
     Total current liabilities                    427,095     312,161
---------------------------------------------- ----------- -----------
 Deferred revenue                                  25,000      25,000
 Line of credit                                    16,000      18,000
 Income taxes payable                              28,076           -
 Other long-term liabilities                        5,601       4,828
---------------------------------------------- ----------- -----------
     Total liabilities                            501,772     359,989
---------------------------------------------- ----------- -----------
Commitments and contingencies

Stockholders' equity:
 Common stock, $.01 par value, 100,000 shares         771         743
  authorized; 77,146 and 74,273 shares issued
  and outstanding at April 30, 2008 and
  October 31, 2007, respectively
 Additional paid-in capital                       578,822     513,297
 Accumulated deficit                              (18,597)    (77,747)
 Accumulated other comprehensive income            34,360      34,861
---------------------------------------------- ----------- -----------
     Total stockholders' equity                   595,356     471,154
---------------------------------------------- ----------- -----------

---------------------------------------------- ----------- -----------
     Total liabilities and stockholders'
      equity                                   $1,097,128    $831,143
============================================== =========== ===========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                            (in thousands)

                                                   Six months ended
                                                        April 30,
                                                  --------------------
                                                     2008      2007
                                                  ---------- ---------
Operating activities:
 Net income (loss)                                $  60,225  $(72,797)
 ------------------------------------------------ ---------- ---------
 Adjustments to reconcile net income (loss) to
  net cash used for operating activities:
  Amortization and impairment of software
   development costs and licenses (1)                64,544    41,964
  Depreciation and amortization of long-lived
   assets                                            13,925    13,737
  Amortization and impairment of intellectual
   property                                             537     6,691
  Stock-based compensation (2)                       18,500     9,810
  Benefit for deferred income taxes                    (117)     (135)
  Foreign currency transaction gain and other          (360)     (959)
 Changes in assets and liabilities, net of effect
  from purchases of businesses:
  Accounts receivable                              (257,828)   76,257
  Inventory                                           7,510    15,292
  Software development costs and licenses           (74,229)  (77,589)
  Prepaid expenses, other current and other non-
   current assets                                    15,952    16,150
  Accounts payable, accrued expenses, deferred
   revenue, income taxes payable and                137,617   (42,461)
  other liabilities
 ------------------------------------------------ ---------- ---------
 Total adjustments                                  (73,949)   58,757
 ------------------------------------------------ ---------- ---------
 Net cash used for operating activities             (13,724)  (14,040)
 ------------------------------------------------ ---------- ---------

Investing activities:
 Purchase of fixed assets                            (4,998)  (13,090)
 Payments for purchases of businesses, net of
  cash acquired                                      (4,037)     (982)
 ------------------------------------------------ ---------- ---------
 Net cash used for investing activities              (9,035)  (14,072)
 ------------------------------------------------ ---------- ---------

Financing activities:
 Proceeds from exercise of options                   20,489       802
 Payments on line of credit                         (67,000)        -
 Borrowings on line of credit                        65,000         -
 Payment of debt issuance costs                        (957)        -
 ------------------------------------------------ ---------- ---------
 Net cash provided by financing activities           17,532       802
 ------------------------------------------------ ---------- ---------
 Effects of exchange rates on cash and cash
  equivalents                                           388     3,346
 ------------------------------------------------ ---------- ---------
 Net decrease in cash and cash equivalents           (4,839)  (23,964)
 Cash and cash equivalents, beginning of year        77,757   132,480
 ------------------------------------------------ ---------- ---------
 Cash and cash equivalents, end of period         $  72,918  $108,516
 ================================================ ========== =========

(1) Excludes stock-based compensation
(2) Includes the net effects of capitalization and amortization of
 stock-based compensation
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
               (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
                         April      and     legal   compen-    April
                       30, 2008   related  matters   sation  30, 2008
                       --------- --------- -------- -------- ---------

Net revenue            $539,810   $     -  $     -  $     -  $539,810
---------------------- --------- --------- -------- -------- ---------

Cost of goods sold:
Product costs           185,043         -        -        -   185,043
Software development
 costs and royalties     57,688         -        -   (6,448)   51,240
Internal royalties       52,653         -        -        -    52,653
Licenses                 22,875         -        -        -    22,875
---------------------- --------- --------- -------- -------- ---------
Total cost of goods
 sold                   318,259         -        -   (6,448)  311,811
---------------------- --------- --------- -------- -------- ---------

Gross profit            221,551         -        -    6,448   227,999

Selling and marketing    45,949         -        -     (514)   45,435
General and
 administrative          49,201         -   (3,781)  (4,576)   40,844
Research and
 development             14,828         -        -     (889)   13,939
Business
 reorganization and
 related                    944      (944)       -        -         -
Depreciation and
 amortization             7,516         -        -        -     7,516
---------------------- --------- --------- -------- -------- ---------
Total operating
 expenses               118,438      (944)  (3,781)  (5,979)  107,734
---------------------- --------- --------- -------- -------- ---------
Income from operations  103,113       944    3,781   12,427   120,265
Interest and other
 expense, net              (830)        -        -        -      (830)
---------------------- --------- --------- -------- -------- ---------
Income before income
 taxes                  102,283       944    3,781   12,427   119,435
Income taxes              4,061         -        -        -     4,061
---------------------- --------- --------- -------- -------- ---------
Net income             $ 98,222   $   944  $ 3,781  $12,427  $115,374
====================== ========= ========= ======== ======== =========

Earnings per share:*
---------------------- --------- --------- -------- -------- ---------
Basic                  $   1.31   $  0.01  $  0.05  $  0.17  $   1.54
Diluted                $   1.29   $  0.01  $  0.05  $  0.16  $   1.52
====================== ========= ========= ======== ======== =========

Weighted average shares
 outstanding
-------------------------------- --------- -------- -------- ---------
Basic                    75,098    75,098   75,098   75,098    75,098
Diluted                  75,954    75,954   75,954   75,954    75,954
====================== ========= ========= ======== ======== =========

EBITDA:
Income before income
 taxes                 $102,283                              $119,435
Interest and other
 expense, net               830                                   830
Depreciation and
 amortization             7,516                                 7,516
                       ---------                             ---------
EBITDA                 $110,629                              $127,781
Add: Business
 reorganization and
 related                    944                                     -
                       ---------                             ---------
Adjusted EBITDA        $111,573                              $127,781
                       =========                             =========


*Basic and diluted earnings per share may not add due to rounding
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
               (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
                         April      and     legal   compen-    April
                       30, 2007   related  matters   sation  30, 2007
                       --------- --------- -------- -------- ---------

Net revenue            $205,436   $     -  $     -  $     -  $205,436
---------------------- --------- --------- -------- -------- ---------

Cost of goods sold:
Product costs           105,679         -        -        -   105,679
Software development
 costs and royalties     30,311    (5,164)       -     (488)   24,659
Internal royalties        4,875         -        -        -     4,875
Licenses                 18,717         -        -        -    18,717
---------------------- --------- --------- -------- -------- ---------
Total cost of goods
 sold                   159,582    (5,164)       -     (488)  153,930
---------------------- --------- --------- -------- -------- ---------

Gross profit             45,854     5,164        -      488    51,506

Selling and marketing    28,159         -        -     (312)   27,847
General and
 administrative          40,471         -   (3,934)  (2,154)   34,383
Research and
 development             11,936         -        -   (1,070)   10,866
Business
 reorganization and
 related                  8,962    (7,161)       -   (1,801)        -
Depreciation and
 amortization             7,076         -        -        -     7,076
---------------------- --------- --------- -------- -------- ---------
Total operating
 expenses                96,604    (7,161)  (3,934)  (5,337)   80,172
---------------------- --------- --------- -------- -------- ---------
Loss from operations    (50,750)   12,325    3,934    5,825   (28,666)
Interest and other
 income, net              1,022         -        -        -     1,022
---------------------- --------- --------- -------- -------- ---------
Loss before income
 taxes                  (49,728)   12,325    3,934    5,825   (27,644)
Income taxes              1,521         -        -        -     1,521
---------------------- --------- --------- -------- -------- ---------
Net loss               $(51,249)  $12,325  $ 3,934  $ 5,825  $(29,165)
====================== ========= ========= ======== ======== =========

Loss per share:*
---------------------- --------- --------- -------- -------- ---------
Basic                  $  (0.71)  $  0.17  $  0.05  $  0.08  $  (0.41)
Diluted                $  (0.71)  $  0.17  $  0.05  $  0.08  $  (0.41)
====================== ========= ========= ======== ======== =========

Weighted average shares
 outstanding
-------------------------------- --------- -------- -------- ---------
Basic                    71,736    71,736   71,736   71,736    71,736
Diluted                  71,736    71,736   71,736   71,736    71,736
====================== ========= ========= ======== ======== =========

EBITDA:
Loss before income
 taxes                 $(49,728)                             $(27,644)
Interest and other
 income, net             (1,022)                               (1,022)
Depreciation and
 amortization             7,076                                 7,076
                       ---------                             ---------
EBITDA                 $(43,674)                             $(21,590)
Add: Business
 reorganization and
 related                  8,962                                     -
                       ---------                             ---------
Adjusted EBITDA        $(34,712)                             $(21,590)
                       =========                             =========


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

                                 Non-GAAP Reconciling Items
                                ----------------------------
                                                             Non-GAAP
                        Six     Business  Profess-              six
                       months   reorgani-  ional    Stock-    months
                        ended    zation   fees and   based     ended
                        April      and     legal    compen-    April
                      30, 2008   related  matters   sation   30, 2008
                      --------- --------- -------- --------- ---------

Net revenue           $780,252   $     -  $     -  $      -  $780,252
--------------------- --------- --------- -------- --------- ---------

Cost of goods sold:
Product costs          333,195         -        -         -   333,195
Software development
 costs and royalties    80,402         -        -    (7,194)   73,208
Internal royalties      58,797         -        -         -    58,797
Licenses                31,873         -        -         -    31,873
--------------------- --------- --------- -------- --------- ---------
Total cost of goods
 sold                  504,267         -        -    (7,194)  497,073
--------------------- --------- --------- -------- --------- ---------

Gross profit           275,985         -        -     7,194   283,179

Selling and marketing   79,678         -        -    (1,381)   78,297
General and
 administrative         80,603         -   (5,275)   (7,948)   67,380
Research and
 development            30,638         -        -    (1,977)   28,661
Business
 reorganization and
 related                 1,106    (1,106)       -         -         -
Depreciation and
 amortization           13,925         -        -         -    13,925
--------------------- --------- --------- -------- --------- ---------
Total operating
 expenses              205,950    (1,106)  (5,275)  (11,306)  188,263
--------------------- --------- --------- -------- --------- ---------
Income from
 operations             70,035     1,106    5,275    18,500    94,916
Interest and other
 expense, net             (982)        -        -         -      (982)
--------------------- --------- --------- -------- --------- ---------
Income before income
 taxes                  69,053     1,106    5,275    18,500    93,934
Income taxes             8,828         -        -         -     8,828
--------------------- --------- --------- -------- --------- ---------
Net income            $ 60,225   $ 1,106  $ 5,275  $ 18,500  $ 85,106
===================== ========= ========= ======== ========= =========

Earnings per share:*
--------------------- --------- --------- -------- --------- ---------
Basic                 $   0.81   $  0.01  $  0.07  $   0.25  $   1.15
Diluted               $   0.80   $  0.01  $  0.07  $   0.25  $   1.14
===================== ========= ========= ======== ========= =========

Weighted average
 shares outstanding
--------------------- --------- --------- -------- --------- ---------
Basic                   74,112    74,112   74,112    74,112    74,112
Diluted                 74,894    74,894   74,894    74,894    74,894
===================== ========= ========= ======== ========= =========

EBITDA:
Income before income
 taxes                $ 69,053                               $ 85,106
Interest and other
 expense, net              982                                    982
Depreciation and
 amortization           13,925                                 13,925
                      ---------                              ---------
EBITDA                  83,960                                100,013
Add: Business
 reorganization and
 related                 1,106                                      -
                      ---------                              ---------
Adjusted EBITDA       $ 85,066                               $100,013
                      =========                              =========


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

                                 Non-GAAP Reconciling Items
                                ----------------------------
                                                             Non-GAAP
                         Six    Business  Profess-              six
                       months   reorgani-   ional    Stock-   months
                        ended    zation   fees and   based     ended
                       April      and       legal   compen-   April
                      30, 2007   related   matters   sation  30, 2007
                      --------- --------- --------- -------- ---------

Net revenue           $482,776   $     -  $      -  $     -  $482,776
--------------------- --------- --------- --------- -------- ---------

Cost of goods sold:
Product costs          269,822    (5,164)        -        -   264,658
Software development
 costs and royalties    53,190         -         -   (1,033)   52,157
Internal royalties      14,354         -         -        -    14,354
Licenses                26,441         -         -        -    26,441
--------------------- --------- --------- --------- -------- ---------
Total cost of goods
 sold                  363,807    (5,164)        -   (1,033)  357,610
--------------------- --------- --------- --------- -------- ---------

Gross profit           118,969     5,164         -    1,033   125,166

Selling and marketing   63,183         -         -     (619)   62,564
General and
 administrative         79,085         -   (11,167)  (4,100)   63,818
Research and
 development            26,086         -         -   (2,257)   23,829
Business
 reorganization and
 related                 8,962    (7,161)        -   (1,801)        -
Depreciation and
 amortization           13,737         -         -        -    13,737
--------------------- --------- --------- --------- -------- ---------
Total operating
 expenses              191,053    (7,161)  (11,167)  (8,777)  163,948
--------------------- --------- --------- --------- -------- ---------
Loss from operations   (72,084)   12,325    11,167    9,810   (38,782)
Interest and other
 income, net             1,884         -         -        -     1,884
--------------------- --------- --------- --------- -------- ---------
Loss before income
 taxes                 (70,200)   12,325    11,167    9,810   (36,898)
Income taxes             2,597         -         -        -     2,597
--------------------- --------- --------- --------- -------- ---------
Net loss              $(72,797)  $12,325  $ 11,167  $ 9,810  $(39,495)
===================== ========= ========= ========= ======== =========

Loss per share:*
--------------------- --------- --------- --------- -------- ---------
Basic                 $  (1.02)  $  0.17  $   0.16  $  0.14  $  (0.55)
Diluted               $  (1.02)  $  0.17  $   0.16  $  0.14  $  (0.55)
===================== ========= ========= ========= ======== =========

Weighted average
 shares outstanding
--------------------- --------- --------- --------- -------- ---------
Basic                   71,548    71,548    71,548   71,548    71,548
Diluted                 71,548    71,548    71,548   71,548    71,548
===================== ========= ========= ========= ======== =========

EBITDA:
Loss before income
 taxes                $(70,200)                              $(39,495)
Interest and other
 income, net            (1,884)                                (1,884)
Depreciation and
 amortization           13,737                                 13,737
                      ---------                              ---------
EBITDA                 (58,347)                               (27,642)
Add: Business
 reorganization and
 related                 8,962                                      -
                      ---------                              ---------
Adjusted EBITDA       $(49,385)                              $(27,642)
                      =========                              =========


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

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

    SOURCE: Take-Two Interactive Software, Inc.