Take-Two News Release

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Take-Two Interactive Software, Inc. Reports Record Third Quarter Fiscal 2008 Financial Results
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    Non-GAAP EPS is $0.93, versus ($0.62) Non-GAAP Net Loss a Year Ago

        Top and Bottom Line Results Exceed High End of Guidance

NEW YORK--(BUSINESS WIRE)--Sept. 4, 2008--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its third quarter ended July 31, 2008, which exceeded the Company's previously issued guidance.

Net revenue for the third fiscal quarter was $433.8 million, compared to $206.4 million for the same quarter of fiscal 2007. Third quarter sales were led by the blockbuster Grand Theft Auto IV, as well as Top Spin 3 and Sid Meier's Civilization(R) Revolution(TM).

Net income for the third quarter was $51.8 million or $0.67 per share, compared to a net loss of ($58.5) million or ($0.81) per share in the third quarter of fiscal 2007.

The third quarter results include $12.6 million in stock-based compensation expense ($0.16 per share); $5.4 million in professional fees and legal expenses, primarily related to Electronic Arts' unsolicited tender offer ($0.07 per share); and $1.8 million in business reorganization costs ($0.02 per share). Results for the third quarter of 2007 included $10.8 million of business reorganization costs, legal expenses and other professional fees ($0.15 per share); as well as $2.8 million in stock-based compensation expense ($0.04 per share).

Non-GAAP net income was $71.5 million or $0.93 per share in the third quarter, compared to a net loss of ($44.9) million or ($0.62) per share in the third 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 nine months ended July 31, 2008, net revenues were $1,214.1 million, compared to $689.2 million for the same period a year ago. Net income for the first nine months of fiscal 2008 was $112.1 million or $1.48 per share, compared to a loss of ($131.3) million or ($1.83) for the 2007 period. Results for the first nine months of fiscal 2008 include $31.1 million in stock-based compensation expense ($0.41 per share); $10.7 million in professional fees and legal expenses, primarily related to Electronic Arts' unsolicited tender offer ($0.14 per share); and $2.9 million in business reorganization costs ($0.04 per share). Results for the first nine months of fiscal 2007 included $34.3 million of business reorganization costs, legal expenses and other professional fees ($0.48 per share); as well as $12.6 million in stock-based compensation expense ($0.18 per share).

Non-GAAP net income was $156.6 million or $2.07 per share in the first nine months of 2008, compared to a net loss of ($84.4) million or ($1.18) 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:

    --  Sales of Rockstar Games' blockbuster Grand Theft Auto IV
        continued to exceed the Company's expectations. Over 10
        million units have been sold through to consumers as of August
        16, 2008.

    --  Carnival Games(TM), a wholly owned and internally developed
        title for the Wii(TM) home video game system from Nintendo and
        Nintendo DS(TM), has shipped over 2 million units since its
        debut in late August 2007. 2K Play will be expanding the
        franchise with Carnival Games: Mini-Golf for the Wii in the
        fourth quarter of fiscal 2008.

    --  Gary Dale was named Chief Operating Officer of Take-Two,
        responsible for Take-Two's publishing labels, sales
        activities, international expansion and business development
        initiatives. He had previously served as Executive Vice
        President of Take-Two.

"Take-Two's exceptionally robust third quarter results reflected our continuing efforts to build a diverse roster of outstanding entertainment software brands, supported by an increasingly productive and efficient business organization," said Strauss Zelnick, Chairman of Take-Two. "Thanks in particular to the creativity of our global development teams and their passion for producing great entertainment, we are benefiting from a portfolio that is the strongest in our Company's history, as well as one of the most valuable in our industry."

Ben Feder, Chief Executive Officer of Take-Two, noted, "I'm extremely pleased with our strong position heading into the holiday season. Our world-class holiday portfolio includes Grand Theft Auto IV, Top Spin 3, Sid Meier's Civilization Revolution, and Carnival Games, as well as upcoming hits such as Midnight Club: Los Angeles, BioShock for PLAYSTATION(R)3, and a range of sports titles. Longer term, we're sharply focused on bringing our popular products to new regions and new markets, as we continue to seek opportunities for profitable growth and enhanced stockholder value."

Financial Guidance

Take-Two's guidance for the fourth quarter and fiscal year ending October 31, 2008 is detailed below. The Company has increased its guidance for fiscal year 2008, while reducing its guidance for the fourth quarter, primarily due to the significantly better than expected third quarter results and shifts in the timing of certain product releases, the most significant of which are Midnight Club: Los Angeles and Midnight Club: LA Remix, which will now be released on October 21st and October 24th in North America and Europe, respectively.

                           Revenue*        Non-GAAP EPS (a)(b)
                      ------------------  ---------------------
Fourth quarter ending    $285 to $335         $0.01 to $0.05
           10/31/2008
   Fiscal year ending  $1,500 to $1,550       $2.08 to $2.12
           10/31/2008
* In millions

(a) The Company's non-GAAP EPS estimates for the fourth quarter and
 fiscal year ending October 31, 2008 exclude approximately $0.18 and
 $0.59 per share, respectively, of stock-based compensation expense;
 and approximately $0.03 and $0.21 per share, respectively, of
 professional fees and legal expenses related to unusual matters,
 including the Electronic Arts tender offer and the Company's related
 review of strategic alternatives; as well as business reorganization
 costs. The Company's stock-based compensation expense for the fourth
 quarter and fiscal 2008 reflects the cost of approximately 2 million
 stock options and 1.5 million shares issued to ZelnickMedia that are
 subject to variable accounting. Actual expense to be recorded in
 connection with these options and shares 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 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 third quarter of fiscal 2008:

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

Carnival Games(TM)                            DS
Don King Presents: Prizefighter               Xbox 360
MLB(R) Power Pros 2008                        Wii, PS2
Sid Meier's Civilization(R) Revolution(TM)    Xbox 360, PS3, DS
Top Spin 3                                    Xbox 360, PS3, Wii, DS

The following titles are planned for release in the remainder of fiscal 2008:

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

BioShock(R)                                      PS3
Carnival Games: Mini-Golf(TM)                    Wii
Dora the Explorer: Dora Saves the Snow Princess  Wii, PS2, DS
Go, Diego, Go!: Great Dinosaur Rescue            Wii, PS2, DS
Grand Theft Auto IV (Japanese edition)           Xbox 360, PS3
Midnight Club: Los Angeles                       Xbox 360, PS3
Midnight Club: LA Remix                          PSP
NBA(R) 2K9                                       Multiple platforms
NHL(R) 2K9                                       Multiple platforms
Sid Meier's Civilization IV: Colonization(TM)    Games for Windows(R)
The Wonder Pets!: Save the Animals               DS

Take-Two's line up announced to date for fiscal 2009 includes the following titles:

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

BioShock(R) 2                             TBA
Borderlands(TM)                           Xbox 360, PS3, Games for
                                           Windows(R)
Champions Online(TM)                      TBA (MMOG)
Grand Theft Auto: IV                      PC
Grand Theft Auto: Chinatown Wars          DS
Grand Theft Auto IV episodic content      Xbox 360
Mafia II                                  Multiple platforms
Major League Baseball(R) 2K9              Multiple platforms
MLB(R) Superstars                         Wii
NBA(R) 2K10                               Multiple platforms
NHL(R) 2K10                               Multiple platforms

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 unusual legal
        and other matters, including the Company's strategic review
        process

    --  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 fiscal 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 nine months ended July 31, 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. 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 unusual legal and other matters, including the Company's strategic review process

The Company has incurred significant legal, consulting and investment banking expenses related to the tender offer by Electronic Arts Inc. to acquire all of the Company's outstanding shares, which was launched in March 2008 and expired in August 2008, and the Company's related strategic review process. The Company expects to continue to incur expenses for professional fees related to its strategic review process until that process is completed. Additionally, the Company has realized significant legal and other professional fees associated with both the investigation of its historical stock option granting process and the Company's responses to related governmental inquiries and civil lawsuits. One of management's primary objectives is to bring conclusion to its outstanding legal 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 U.S. GAAP. 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

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. In addition, the Company has announced it is currently evaluating its strategic alternatives. Further risks and uncertainties associated with the Company's process to evaluate its strategic alternatives 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 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 the Company's process to evaluate its strategic alternatives (including stockholder litigation relating to Electronic Arts Inc.'s tender offer to acquire the Company's outstanding shares that expired on August 18, 2008) 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 April 30, 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. 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 the Company's process to evaluate its strategic alternatives or otherwise.

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

                            Three months ended    Nine months ended
                                  July 31,             July 31,
                            ------------------- ----------------------
                              2008      2007       2008        2007
                            --------- --------- ----------- ----------

Net revenue                 $433,836  $206,415  $1,214,088  $ 689,191
--------------------------- --------- --------- ----------- ----------

Cost of goods sold:
  Product costs              154,362   107,458     487,557    377,280
  Software development
   costs and royalties        45,721    40,600     126,123     93,790
  Internal royalties          51,971     3,536     110,768     17,890
  Licenses                     7,602    16,685      39,475     43,126
--------------------------- --------- --------- ----------- ----------
Total cost of goods sold     259,656   168,279     763,923    532,086
--------------------------- --------- --------- ----------- ----------

Gross profit                 174,180    38,136     450,165    157,105

  Selling and marketing       42,856    35,223     122,534     98,406
  General and
   administrative             47,070    34,703     127,673    113,788
  Research and development    17,239    11,210      47,877     37,296
  Business reorganization
   and related                 1,771     7,100       2,877     16,062
  Depreciation and
   amortization                6,201     7,006      20,126     20,743
--------------------------- --------- --------- ----------- ----------
Total operating expenses     115,137    95,242     321,087    286,295
--------------------------- --------- --------- ----------- ----------
Income (loss) from
 operations                   59,043   (57,106)    129,078   (129,190)
Interest and other income
 (expense), net                  874       748        (108)     2,632
--------------------------- --------- --------- ----------- ----------
Income (loss) before income
 taxes                        59,917   (56,358)    128,970   (126,558)
Income taxes                   8,091     2,188      16,919      4,785
--------------------------- --------- --------- ----------- ----------
Net income (loss)           $ 51,826  $(58,546) $  112,051  $(131,343)
=========================== ========= ========= =========== ==========

Earnings (loss) per share:
--------------------------- --------- --------- ----------- ----------
Basic                       $   0.68  $  (0.81) $     1.50  $   (1.83)
Diluted                     $   0.67  $  (0.81) $     1.48  $   (1.83)
=========================== ========= ========= =========== ==========

Weighted average shares
 outstanding:
--------------------------- --------- --------- ----------- ----------
Basic                         75,866    72,075      74,701     71,714
Diluted                       76,975    72,075      75,640     71,714
=========================== ========= ========= =========== ==========



                            Three months ended    Nine months ended
                                  July 31,             July 31,
                            ------------------- ----------------------
OTHER INFORMATION             2008      2007       2008        2007
--------------------------- --------- --------- ----------- ----------

  Total revenue mix
     Publishing                   88%       76%         81%        69%
     Distribution                 12%       24%         19%        31%

  Geographic revenue mix
     North America                54%       78%         65%        76%
     International                46%       22%         35%        24%

  Publishing revenue
   platform mix
     Microsoft Xbox 360           44%       34%         43%        23%
     Sony PLAYSTATION 3           37%       20%         33%        12%
     Nintendo Wii                  7%        6%          8%         2%
     Sony PlayStation 2            5%       18%          8%        31%
     Sony PSP                      3%        7%          4%        13%
     PC                            2%        8%          3%        11%
     Nintendo Handhelds            2%        3%          1%         2%
     Other                         0%        4%          0%         6%
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except per share amounts)

                                               ----------- -----------
                                                July 31,   October 31,
                                                  2008        2007
                                               ----------- -----------
                    ASSETS                     (Unaudited)
Current assets:
 Cash and cash equivalents                      $  338,701   $ 77,757
 Accounts receivable, net of allowances of
  $58,210 and $63,324 at July 31, 2008 and
  October 31, 2007, respectively                   106,354    104,937
 Inventory                                          71,574     99,331
 Software development costs and licenses           127,810    141,441
 Prepaid taxes and taxes receivable                 24,656     40,316
 Prepaid expenses and other                         46,047     34,741
---------------------------------------------- ----------- -----------
     Total current assets                          715,142    498,523
---------------------------------------------- ----------- -----------

 Fixed assets, net                                  38,247     44,986
 Software development costs and licenses, net
  of current portion                                57,891     34,465
 Goodwill                                          240,855    204,845
 Other intangibles, net                             27,636     31,264
 Other assets                                       12,791     17,060
---------------------------------------------- ----------- -----------
     Total assets                               $1,092,562   $831,143
============================================== =========== ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                               $  149,526   $128,782
 Accrued expenses and other current
  liabilities                                      184,468    146,835
 Deferred revenue                                   58,332     36,544
---------------------------------------------- ----------- -----------
     Total current liabilities                     392,326    312,161
---------------------------------------------- ----------- -----------
 Deferred revenue                                        -     25,000
 Line of credit                                          -     18,000
 Income taxes payable                               27,436          -
 Other long-term liabilities                         7,219      4,828
---------------------------------------------- ----------- -----------
     Total liabilities                             426,981    359,989
---------------------------------------------- ----------- -----------
Commitments and contingencies

Stockholders' equity:
 Common stock, $.01 par value, 100,000 shares
  authorized; 77,586 and 74,273 shares issued
  and outstanding at July 31, 2008 and October
  31, 2007, respectively                               776        743
 Additional paid-in capital                        594,589    513,297
 Retained earnings (accumulated deficit)            33,229    (77,747)
 Accumulated other comprehensive income             36,987     34,861
---------------------------------------------- ----------- -----------
     Total stockholders' equity                    665,581    471,154
---------------------------------------------- ----------- -----------

---------------------------------------------- ----------- -----------
     Total liabilities and stockholders'
      equity                                    $1,092,562   $831,143
============================================== =========== ===========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                            (in thousands)

                                                  Nine months ended
                                                        July 31,
                                                 ---------------------
                                                    2008       2007
                                                 ---------- ----------
Operating activities:
 Net income (loss)                               $ 112,051  $(131,343)
 ----------------------------------------------- ---------- ----------
 Adjustments to reconcile net income (loss) to
  net cash provided by (used for) operating
  activities:
    Amortization and impairment of software
     development costs and licenses (1)            104,565     79,320
    Depreciation and amortization of long-lived
     assets                                         20,126     20,743
    Amortization and impairment of intellectual
     property                                        1,632      7,278
    Stock-based compensation (2)                    31,062     12,554
    Provision (benefit) for deferred income
     taxes                                              99       (159)
    Foreign currency transaction loss (gain) and
     other                                           1,203       (805)
 Changes in assets and liabilities, net of
  effect from purchases of businesses:
    Accounts receivable                             (1,417)    48,273
    Inventory                                       27,757     19,730
    Software development costs and licenses       (115,913)  (117,447)
    Prepaid expenses, other current and other
     non-current assets                              9,474     16,652
    Accounts payable, accrued expenses, deferred
     revenue, income taxes payable and other
     liabilities                                    77,209    (27,551)
    -------------------------------------------- ---------- ----------

                                                 ---------- ----------
 Total adjustments                                 155,797     58,588
 ----------------------------------------------- ---------- ----------
 Net cash provided by (used for) operating
  activities                                       267,848    (72,755)
 ----------------------------------------------- ---------- ----------

Investing activities:
 Purchase of fixed assets                           (9,026)   (16,629)
 Purchases of businesses, net of cash acquired      (4,037)      (982)
 ----------------------------------------------- ---------- ----------
 Net cash used for investing activities            (13,063)   (17,611)
 ----------------------------------------------- ---------- ----------

Financing activities:
 Proceeds from exercise of employee stock
  options                                           25,363      5,501
 Payments on line of credit                        (83,000)         -
 Borrowings on line of credit                       65,000     11,000
 Payment of debt issuance costs                       (962)    (1,764)
 ----------------------------------------------- ---------- ----------
 Net cash provided by financing activities           6,401     14,737
 ----------------------------------------------- ---------- ----------
 Effects of exchange rates on cash and cash
  equivalents                                         (242)     4,774
 ----------------------------------------------- ---------- ----------
 Net increase (decrease) in cash and cash
  equivalents                                      260,944    (70,855)
 Cash and cash equivalents, beginning of year       77,757    132,480
 ----------------------------------------------- ---------- ----------
 Cash and cash equivalents, end of period        $ 338,701  $  61,625
 =============================================== ========== ==========

 (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
                        July       and     legal   compen-     July
                      31, 2008   related  matters   sation   31, 2008
                     ---------- --------- -------- -------- ----------

Net revenue          $ 433,836   $     -  $     -  $     -  $ 433,836
-------------------- ---------- --------- -------- -------- ----------

Cost of goods sold:
  Product costs        154,362         -        -        -    154,362
  Software
   development costs
   and royalties        45,721         -        -   (3,404)    42,317
  Internal royalties    51,971         -        -        -     51,971
  Licenses               7,602         -        -        -      7,602
-------------------- ---------- --------- -------- -------- ----------
Total cost of goods
 sold                  259,656         -        -   (3,404)   256,252
-------------------- ---------- --------- -------- -------- ----------

Gross profit           174,180         -        -    3,404    177,584

  Selling and
   marketing            42,856         -        -     (545)    42,311
  General and
   administrative       47,070         -   (5,379)  (6,922)    34,769
  Research and
   development          17,239         -        -   (1,687)    15,552
  Business
   reorganization
   and related           1,771    (1,771)       -        -          -
  Depreciation and
   amortization          6,201         -        -        -      6,201
-------------------- ---------- --------- -------- -------- ----------
Total operating
 expenses              115,137    (1,771)  (5,379)  (9,154)    98,833
-------------------- ---------- --------- -------- -------- ----------
Income from
 operations             59,043     1,771    5,379   12,558     78,751
Interest and other
 income, net               874         -        -        -        874
-------------------- ---------- --------- -------- -------- ----------
Income before income
 taxes                  59,917     1,771    5,379   12,558     79,625
Income taxes             8,091         -        -        -      8,091
-------------------- ---------- --------- -------- -------- ----------
Net income           $  51,826   $ 1,771  $ 5,379  $12,558  $  71,534
==================== ========== ========= ======== ======== ==========

Earnings per share:*
-------------------- ---------- --------- -------- -------- ----------
Basic                $    0.68   $  0.02  $  0.07  $  0.17  $    0.94
Diluted              $    0.67   $  0.02  $  0.07  $  0.16  $    0.93
==================== ========== ========= ======== ======== ==========

Weighted average
 shares outstanding
------------------------------- --------- -------- -------- ----------
Basic                   75,866    75,866   75,866   75,866     75,866
Diluted                 76,975    76,975   76,975   76,975     76,975
==================== ========== ========= ======== ======== ==========

EBITDA:
Income before income
 taxes               $  59,917                              $  79,625
Interest                  (689)                                  (689)
Depreciation and
 amortization            6,201                                  6,201
                     ----------                             ----------
EBITDA               $  65,429                              $  85,137
Add: Business
 reorganization and
 related                 1,771                                      -
                     ----------                             ----------
Adjusted EBITDA      $  67,200                              $  85,137
                     ==========                             ==========


*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
                       July        and     legal   compen-     July
                     31, 2007    related  matters   sation   31, 2007
                    ----------- --------- -------- -------- ----------

Net revenue         $  206,415   $     -  $     -  $     -  $ 206,415
------------------- ----------- --------- -------- -------- ----------

Cost of goods sold:
  Product costs        107,458         -        -        -    107,458
  Software
   development
   costs and
   royalties            40,600         -        -   (1,175)    39,425
  Internal
   royalties             3,536         -        -        -      3,536
  Licenses              16,685         -        -        -     16,685
------------------- ----------- --------- -------- -------- ----------
Total cost of goods
 sold                  168,279         -        -   (1,175)   167,104
------------------- ----------- --------- -------- -------- ----------

Gross profit            38,136         -        -    1,175     39,311

  Selling and
   marketing            35,223         -        -     (260)    34,963
  General and
   administrative       34,703         -   (4,013)    (344)    30,346
  Research and
   development          11,210         -        -     (722)    10,488
  Business
   reorganization
   and related           7,100    (6,835)       -     (265)         -
  Depreciation and
   amortization          7,006         -        -        -      7,006
------------------- ----------- --------- -------- -------- ----------
Total operating
 expenses               95,242    (6,835)  (4,013)  (1,591)    82,803
------------------- ----------- --------- -------- -------- ----------
Loss from
 operations            (57,106)    6,835    4,013    2,766    (43,492)
Interest and other
 income, net               748         -        -        -        748
------------------- ----------- --------- -------- -------- ----------
Loss before income
 taxes                 (56,358)    6,835    4,013    2,766    (42,744)
Income taxes             2,188         -        -        -      2,188
------------------- ----------- --------- -------- -------- ----------
Net loss            $  (58,546)  $ 6,835  $ 4,013  $ 2,766  $ (44,932)
=================== =========== ========= ======== ======== ==========

Loss per share:*
------------------- ----------- --------- -------- -------- ----------
Basic               $    (0.81)  $  0.09  $  0.06  $  0.04  $   (0.62)
Diluted             $    (0.81)  $  0.09  $  0.06  $  0.04  $   (0.62)
=================== =========== ========= ======== ======== ==========

Weighted average
 shares outstanding
------------------------------- --------- -------- -------- ----------
Basic                   72,075    72,075   72,075   72,075     72,075
Diluted                 72,075    72,075   72,075   72,075     72,075
=================== =========== ========= ======== ======== ==========

EBITDA:
Loss before income
 taxes              $  (56,358)                             $ (42,744)
Interest                  (447)                                  (447)
Depreciation and
 amortization            7,006                                  7,006
                    -----------                             ----------
EBITDA              $  (49,799)                             $ (36,185)
Add: Business
 reorganization and
 related                 7,100                                      -
                    -----------                             ----------
Adjusted EBITDA     $  (42,699)                             $ (36,185)
                    ===========                             ==========


*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
                    Nine     Business  Profess-               nine
                   months    reorgani-   ional    Stock-     months
                    ended     zation   fees and    based      ended
                    July        and      legal    compen-     July
                  31, 2008    related   matters   sation    31, 2008
                 ----------- --------- --------- --------- -----------

Net revenue      $1,214,088   $     -  $      -  $      -  $1,214,088
---------------- ----------- --------- --------- --------- -----------

Cost of goods
 sold:
  Product costs     487,557         -         -         -     487,557
  Software
   development
   costs and
   royalties        126,123         -         -   (10,598)    115,525
  Internal
   royalties        110,768         -         -         -     110,768
  Licenses           39,475         -         -         -      39,475
---------------- ----------- --------- --------- --------- -----------
Total cost of
 goods sold         763,923         -         -   (10,598)    753,325
---------------- ----------- --------- --------- --------- -----------

Gross profit        450,165         -         -    10,598     460,763

 Selling and
  marketing         122,534         -         -    (1,926)    120,608
 General and
  administrative    127,673         -   (10,654)  (14,874)    102,145
 Research and
  development        47,877         -         -    (3,664)     44,213
 Business
  reorganization
  and related         2,877    (2,877)        -         -           -
 Depreciation
  and
  amortization       20,126         -         -         -      20,126
---------------- ----------- --------- --------- --------- -----------
Total operating
 expenses           321,087    (2,877)  (10,654)  (20,464)    287,092
---------------- ----------- --------- --------- --------- -----------
Income from
 operations         129,078     2,877    10,654    31,062     173,671
Interest and
 other expense,
 net                   (108)        -         -         -        (108)
---------------- ----------- --------- --------- --------- -----------
Income before
 income taxes       128,970     2,877    10,654    31,062     173,563
Income taxes         16,919         -         -         -      16,919
---------------- ----------- --------- --------- --------- -----------
Net income       $  112,051   $ 2,877  $ 10,654  $ 31,062  $  156,644
================ =========== ========= ========= ========= ===========

Earnings per
 share:*
---------------- ----------- --------- --------- --------- -----------
Basic            $     1.50   $  0.04  $   0.14  $   0.42  $     2.10
Diluted          $     1.48   $  0.04  $   0.14  $   0.41  $     2.07
================ =========== ========= ========= ========= ===========

Weighted average
 shares
 outstanding
---------------- ----------- --------- --------- --------- -----------
Basic                74,701    74,701    74,701    74,701      74,701
Diluted              75,640    75,640    75,640    75,640      75,640
================ =========== ========= ========= ========= ===========

EBITDA:
Income before
 income taxes    $  128,970                                $  173,563
Interest                464                                       464
Depreciation and
 amortization        20,126                                    20,126
                 -----------                               -----------
EBITDA              149,560                                   194,153
Add: Business
 reorganization
 and related          2,877                                         -
                 -----------                               -----------
Adjusted EBITDA  $  152,437                                $  194,153
                 ===========                               ===========


*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
                      Nine    Business  Profess-               nine
                     months   reorgani-   ional    Stock-     months
                     ended     zation   fees and    based     ended
                      July       and      legal    compen-     July
                    31, 2007   related   matters   sation    31, 2007
                   ---------- --------- --------- --------- ----------

Net revenue        $ 689,191  $      -  $      -  $      -  $ 689,191
------------------ ---------- --------- --------- --------- ----------

Cost of goods
 sold:
  Product costs      377,280    (5,164)        -         -    372,116
  Software
   development
   costs and
   royalties          93,790         -         -    (2,208)    91,582
  Internal
   royalties          17,890         -         -         -     17,890
  Licenses            43,126         -         -         -     43,126
------------------ ---------- --------- --------- --------- ----------
Total cost of
 goods sold          532,086    (5,164)        -    (2,208)   524,714
------------------ ---------- --------- --------- --------- ----------

Gross profit         157,105     5,164         -     2,208    164,477

  Selling and
   marketing          98,406         -         -      (879)    97,527
  General and
   administrative    113,788         -   (15,180)   (4,424)    94,184
  Research and
   development        37,296         -         -    (2,978)    34,318
  Business
   reorganization
   and related        16,062   (13,997)        -    (2,065)         -
  Depreciation and
   amortization       20,743         -         -         -     20,743
------------------ ---------- --------- --------- --------- ----------
Total operating
 expenses            286,295   (13,997)  (15,180)  (10,346)   246,772
------------------ ---------- --------- --------- --------- ----------
Loss from
 operations         (129,190)   19,161    15,180    12,554    (82,295)
Interest and other
 income, net           2,632         -         -         -      2,632
------------------ ---------- --------- --------- --------- ----------
Loss before income
 taxes              (126,558)   19,161    15,180    12,554    (79,663)
Income taxes           4,785         -         -         -      4,785
------------------ ---------- --------- --------- --------- ----------
Net loss           $(131,343) $ 19,161  $ 15,180  $ 12,554  $ (84,448)
================== ========== ========= ========= ========= ==========

Loss per share:*
------------------ ---------- --------- --------- --------- ----------
Basic              $   (1.83) $   0.27  $   0.21  $   0.18  $   (1.18)
Diluted            $   (1.83) $   0.27  $   0.21  $   0.18  $   (1.18)
================== ========== ========= ========= ========= ==========

Weighted average
 shares
 outstanding
------------------ ---------- --------- --------- --------- ----------
Basic                 71,714    71,714    71,714    71,714     71,714
Diluted               71,714    71,714    71,714    71,714     71,714
================== ========== ========= ========= ========= ==========

EBITDA:
Loss before income
 taxes             $(126,558)                               $ (79,663)
Interest              (2,570)                                  (2,570)
Depreciation and
 amortization         20,743                                   20,743
                   ----------                               ----------
EBITDA              (108,385)                                 (61,490)
Add: Business
 reorganization
 and related          21,226                                        -
                   ----------                               ----------
Adjusted EBITDA    $ (87,159)                               $ (61,490)
                   ==========                               ==========


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

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

    SOURCE: Take-Two Interactive Software, Inc.