Take-Two News Release

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Take-Two Interactive Software, Inc. Reports First Quarter Fiscal 2007 Financial Results
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NEW YORK--(BUSINESS WIRE)--March 12, 2007--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its first quarter ended January 31, 2007.

Net revenue for the first quarter was $277.3 million compared to $265.0 million for the first quarter of fiscal 2006. Net loss for the quarter was $21.5 million or $0.30 per share, compared to a net loss of $29.1 million or $0.41 per share in the prior year's first quarter. The first quarter 2007 loss includes $6.4 million for legal and other professional fees associated with the investigation of stock option grants and the Company's responses to the New York County District Attorney's subpoenas, $6.1 million to record valuation allowances for deferred tax assets as required under Statement of Financial Accounting Standards (SFAS) 109, and $2.2 million in stock-based compensation as required by SFAS 123(R).

While Take-Two's first quarter results continued to be negatively impacted by the video game industry's ongoing transition to next-generation platforms, the Company realized higher gross profit margins in both its publishing and distribution businesses compared to the first quarter last year. Publishing margins rose due to increased sales of the Company's sports products, primarily NBA(R) 2K7, along with the contribution of higher margin titles such as Grand Theft Auto: Liberty City Stories for the PlayStation(R)2 computer entertainment system and Grand Theft Auto: San Andreas for the PlayStation 2 in Japan. Distribution gross margins rose due to a more favorable mix of software titles sold, particularly an increase in those for next-generation platforms compared to the prior period. Take-Two's operating expenses declined by $10.0 million, or approximately 10%, from last year's first quarter as a result of reduced sales and marketing expenses, the closure of three development studios in 2006, and lower stock-based compensation.

Take-Two generated approximately $12.1 million in cash flow from operations in the quarter, bringing the Company's cash position to $138.2 million as of January 31, 2007.

As previously announced, because the Company provided a comprehensive business update in connection with its February 28, 2007 conference call for the fiscal 2006 fourth quarter, no conference call will be held for the first quarter results.

First Quarter Highlights

Rockstar Games' Grand Theft Auto: Vice City Stories for the PSP (PlayStation(R)Portable) system, Grand Theft Auto: San Andreas and Bully for PlayStation 2, and Grand Theft Auto: Liberty City Stories for the PSP and PlayStation 2 were among the largest contributors to revenue during the quarter. 2K's leading titles in the quarter were NBA 2K7 for the Xbox 360(TM) video game and entertainment system from Microsoft and PLAYSTATION(R)3 and PlayStation 2 computer entertainment systems, The Elder Scrolls(R) IV: Oblivion(TM) for Xbox 360, and College Hoops 2K7 for Xbox 360.

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) game console, PlayStation(R)2 and PLAYSTATION(R)3 computer entertainment systems, PSP(R) (PlayStation(R)Portable) system, Xbox(R) and Xbox 360(TM) 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 and 2K Sports, and Global Star Software; 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include the matters relating to the Special Committee's investigation of the Company's stock option grants and the restatement of our consolidated financial statements as well as the risks and uncertainties stated in this release. 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, there can be no assurance that the actions taken or to be taken by the Company as described herein will ensure the continued listing of the Company's common stock on NASDAQ. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2006 in the section entitled "Risk Factors".

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

                                              Three Months Ended
                                                  January 31,
                                            -----------------------
                                               2007         2006
                                            -----------------------

Net revenue                                 $ 277,340    $ 264,981
------------------------------------------- ----------   ----------

Cost of goods sold:
  Product costs                               164,143      160,853
  Royalties                                    27,713       32,867
  Software development costs                   12,369       15,594
------------------------------------------- ----------   ----------
Total cost of goods sold                      204,225      209,314
------------------------------------------- ----------   ----------

Gross Profit                                   73,115       55,667

  Selling and marketing                        35,024 (a)   41,644 (e)
  General and administrative                   38,614 (b)   38,453 (f)
  Research and development                     14,150 (c)   17,709 (g)
  Depreciation and amortization                 6,661        6,651
------------------------------------------- ----------   ----------
Total operating expenses                       94,449      104,457
------------------------------------------- ----------   ----------
Loss from operations                          (21,334)     (48,790)
------------------------------------------- ----------   ----------
Interest income, net                              862          253
------------------------------------------- ----------   ----------
Loss before income taxes                      (20,472)     (48,537)
Provision (benefit) for income taxes            1,076 (d)  (19,415)
------------------------------------------- ----------   ----------
Net loss                                    $ (21,548)   $ (29,122)
=========================================== ==========   ==========


Loss per share:
Basic                                       $   (0.30)   $   (0.41)
Diluted                                     $   (0.30)   $   (0.41)

Weighted average shares outstanding:
Basic                                          71,360       70,870
Diluted                                        71,360       70,870


                                              Three Months Ended
                                                  January 31,
                                            -----------------------
OTHER INFORMATION                                2007         2006
------------------------------------------- -----------------------

Total revenue mix
  Publishing                                       58%          60%
  Distribution                                     42%          40%

Geographic revenue mix
  North America                                    77%          72%
  International                                    23%          28%

Publishing platform revenue mix
  Sony PlayStation 2                               36%          30%
  Sony PSP                                         20%          33%
  Microsoft Xbox 360                               15%          10%
  PC                                               12%          12%
  Sony PlayStation 3                                6%           0%
  Accessories and other                             6%           6%
  Microsoft Xbox                                    4%           7%
  Nintendo Handhelds                                1%           2%

For the Three Months Ended January 31, 2007:
------------------------------------------------------
(a) Includes stock-based compensation expense of $0.2 million as
 required by SFAS 123(R).

(b) Includes stock-based compensation expense of $1.3 million as
 required by SFAS 123(R) and $6.4 million of legal and other
 professional fees associated with the investigation of stock option
 grants and the Company's responses to the New York County District
 Attorney's subpoenas.
(c) Includes stock-based compensation expense of $0.7 million as
 required by SFAS 123(R).
(d) Includes a charge of $6.1 million to record valuation allowances
 for deferred tax assets.

For the Three Months Ended January 31, 2006:
---------------------------------------------------------
(e) Includes stock-based compensation expense of $0.7 million as
 required by SFAS 123(R).
(f) Includes stock-based compensation expense of $3.1 million as
 required by SFAS 123(R).
(g) Includes stock-based compensation expense of $0.7 million as
 required by SFAS 123(R).
                 TAKE-TWO INTERACTIVE SOFTWARE, INC.
                       CONDENSED BALANCE SHEETS
               (in thousands, except per share amounts)

                                               January 31, October 31,
                                                   2007        2006
                                               ----------- -----------
                    ASSETS                     (Unaudited)
Current assets:
  Cash and cash equivalents                     $ 138,151   $ 132,480
  Accounts receivable, net of allowances of
   $78,847 and $91,509 at January 31, 2007 and
   October 31, 2006, respectively                  79,107     143,199
  Inventory, net                                   82,194      95,520
  Software development costs and licenses          97,839      85,207
  Prepaid taxes and taxes receivable               39,474      60,407
  Prepaid expenses and other                       23,241      28,060
---------------------------------------------- ----------- -----------
    Total current assets                          460,006     544,873
---------------------------------------------- ----------- -----------

  Fixed assets, net                                49,673      47,496
  Software development costs and licenses, net
   of current portion                              39,636      31,354
  Goodwill                                        188,179     187,681
  Other intangibles, net                           41,448      43,248
  Other assets                                     14,544      14,154
---------------------------------------------- ----------- -----------
     Total assets                               $ 793,486   $ 868,806
============================================== =========== ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                              $  61,819   $ 123,947
  Accrued expenses and other current
   liabilities                                    140,391     139,599
---------------------------------------------- ----------- -----------
    Total current liabilities                     202,210     263,546
---------------------------------------------- ----------- -----------

  Deferred revenue                                 50,000      50,000
  Other long-term liabilities                       5,918       4,868
---------------------------------------------- ----------- -----------
    Total liabilities                             258,128     318,414
---------------------------------------------- ----------- -----------
Commitments and contingencies

Stockholders' Equity:
  Common Stock, $.01 par value, 100,000 shares
   authorized; 72,795 and 72,745 shares issued
   and outstanding at January 31, 2007 and
   October 31, 2006, respectively                     728         727
  Additional paid-in capital                      487,516     482,104
  Retained earnings                                39,111      60,659
  Accumulated other comprehensive income            8,003       6,902
---------------------------------------------- ----------- -----------
    Total stockholders' equity                    535,358     550,392
---------------------------------------------- ----------- -----------

---------------------------------------------- ----------- -----------
    Total liabilities and stockholders' equity  $ 793,486   $ 868,806
============================================== =========== ===========

    CONTACT: Take-Two Interactive Software, Inc.
             Jim Ankner, 646-536-3006
             (Corporate Press/Investor Relations)
             james.ankner@take2games.com

    SOURCE: Take-Two Interactive Software, Inc.