Non-GAAP Net Revenue Grew 169% to $364.9 Million
Non-GAAP Net Income Increased to $0.30 Per Diluted Share
Company Repurchased Nearly 1 Million Shares for $26.6 Million
Raises Financial Outlook for Fiscal 2016
NEW YORK--(BUSINESS WIRE)--Nov. 5, 2015--
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported
stronger-than-expected financial results for fiscal second quarter 2016,
ended September 30, 2015. In addition, the Company increased its
financial outlook for the fiscal year ending March 31, 2016, and
provided its initial financial outlook for the fiscal third quarter
2016, ending December 31, 2015.
GAAP Financial Results
For fiscal second quarter 2016, GAAP net revenue grew 175% to $347.0
million, as compared to $126.3 million for fiscal second quarter 2015.
GAAP net income increased to $54.7 million, or $0.55 per diluted share,
as compared to GAAP net loss of $41.4 million, or $0.51 per diluted
share, for the year-ago period.
As of September 30, 2015, the Company had cash and short-term
investments of $1.065 billion.
Non-GAAP Financial Results
For fiscal second quarter 2016, Non-GAAP net revenue grew 169% to $364.9
million, as compared to $135.4 million for the year-ago period. Non-GAAP
net income increased to $32.7 million, or $0.30 per diluted share, as
compared to Non-GAAP net loss of $35.4 million, or $0.44 per diluted
share, for the year-ago period.
The largest contributors to Non-GAAP net revenue in fiscal second
quarter 2016 were NBA® 2K16, Grand Theft Auto® V and Grand
Theft Auto Online, NBA 2K15, and Borderlands®: The
Handsome Collection. Non-GAAP net revenue from digitally-delivered
content grew 57% year-over-year to $141.0 million. The largest
contributors to Non-GAAP net revenue from digitally-delivered content
were the Grand Theft Auto, NBA 2K, Borderlands and WWE
2K series. Revenue from recurrent consumer spending (virtual
currency, downloadable add-on content and online games) grew 39%
year-over-year and accounted for 51% of Non-GAAP net revenue from
digitally-delivered content, or 20% of total Non-GAAP net revenue.
Catalog sales accounted for $165.8 million of Non-GAAP net revenue led
by the Grand Theft Auto, NBA 2K and Borderlands series.
Management Comments
“Take-Two once again delivered better-than-expected Non-GAAP revenue and
earnings growth,” said Strauss Zelnick, Chairman and CEO of Take-Two.
“Our second quarter results were anchored by the series record-breaking
launch of NBA 2K16, along with ongoing demand for Grand Theft
Auto V and strong growth in recurrent consumer spending.
“Our holiday season is off to a great start, including the successful
release of WWE 2K16, and we expect the installed base of
new-gen consoles to expand further and broaden our global audience. We
are raising our fiscal 2016 financial outlook to reflect our
outperformance in the second quarter and positive forecast for the
balance of the year. With our robust development pipeline and increasing
contribution from recurrent consumer spending, Take-Two is better
positioned than ever to generate revenue growth and margin expansion in
future years, and returns for our shareholders over the long-term.”
Business and Product Highlights
Since July 1, 2015:
-
During the fiscal second quarter, Take-Two repurchased 953,647 shares
of its common stock for $26.6 million.
Rockstar Games:
-
Released new free content updates for Grand Theft Auto Online,
including:
-
Ill Gotten Gains Part 2, featuring new vehicles, weapons,
outfits and the addition of The Lab radio station to consoles;
-
Freemode Events, the first update exclusively for
PlayStation 4, Xbox One and PC, which seamlessly integrates dozens
of games and challenges directly into the game’s open world
without lobbies or menus, adds two new Adversary Modes, and brings
the Rockstar Editor to consoles with additional new features;
-
Lowriders, which adds new and upgraded vehicles including
specific lowrider customization options such as hydraulics, new
Adversary Modes, new Lowrider-themed Contact Missions, an array of
new clothing, tattoo and accessory options, as well as upgrades to
both Freemode and the Rockstar Editor’s Director Mode; and
-
Halloween Surprise, featuring a new Halloween-themed
adversary mode plus special vehicles, masks and more.
2K:
-
Launched NBA 2K16 on PlayStation 4, PlayStation 3, Xbox One,
Xbox 360 and PC, as well as on iOS and Android devices. The title is
the highest-rated sports game of 2015 on Xbox One* and set an
unprecedented record for the series, selling-in over four million
units worldwide within the first week of release. According to The NPD
Group, adjusting for days in market, NBA 2K16 had the best
launch month of any sports game during the new console cycle.
-
Launched WWE 2K16 on Xbox One, Xbox 360, PlayStation 4 and
PlayStation 3. Developed collaboratively by Yukes and Visual Concepts,
the title has received strong reviews from the gaming press, which
reflect its significant improvements versus last year’s release and
are among the best ever received by the series. IGN scored WWE 2K16
an 8.8 out of 10, stating that the title is “as close to a fusion of
performance and competition as a wrestling game has ever gotten.” WWE
2K16 is being supported with downloadable add-on content,
including a Season Pass.
-
Released Sid Meier’s Civilization®: Beyond Earth™ – Rising Tide
for PC. Developed by Firaxis Games, Rising Tide is a
massive expansion pack for the 2014 turn-based strategy title, Civilization:
Beyond Earth.
-
Released WWE SuperCard – Season 2 for iOS and
Android devices. Season 2 updates the content of WWE
SuperCard, the renowned collectible card-battling game that is
Take-Two’s most financially successful free-to-play mobile offering.
-
Launched NHL® SuperCard, an action-packed NHL collectible
card-battling game that is available as a free download for iOS and
Android devices.
-
Battleborn™, which is currently in development for PlayStation
4, Xbox One and PC by the creators of Borderlands at Gearbox
Software, is now planned for release on May 3, 2016.
-
Announced that XCOM® 2, which is the sequel to the Game of the
Year award-winning strategy title XCOM: Enemy Unknown and is
currently in development at Firaxis Games, is planned for release on
February 5, 2016 for PC.
-
Announced that Mafia® III, the next installment in 2K’s
successful organized crime series, is currently in development for
Xbox One, PlayStation 4 and PC at Hangar 13, 2K’s new development
studio. Mafia III is planned for release during calendar 2016
(fiscal year 2017).
*According to Metacritic.com.
Financial Outlook for Fiscal 2016
Take-Two is increasing its financial outlook for fiscal year 2016 to
reflect its better-than-expected fiscal second quarter results, strong
forecast for the balance of the fiscal year and an expected tax benefit,
partially offset by the impact of moving the planned launches of Battleborn
to May 3, 2016, and XCOM 2 to February 5, 2016. In addition, the
Company is providing its initial financial outlook for the fiscal third
quarter ending December 31, 2015 as follows:
|
|
|
|
|
Third Quarter
|
|
|
Fiscal Year
|
|
|
|
|
|
Ending 12/31/2015
|
|
|
Ending 3/31/2016
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenue
|
|
|
$400 to $450 Million
|
|
|
$1.325 to $1.425 Billion
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per diluted share (1)
|
|
|
$0.40 to $0.50
|
|
|
$1.00 to $1.15
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciling Items (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effect from deferral in net revenues and related cost of
goods sold
|
|
|
$0.52
|
|
|
$0.22
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense (3)
|
|
|
$0.11
|
|
|
$0.43
|
|
|
|
|
|
|
|
|
|
|
|
Business reorganization, restructuring and related expenses
|
|
|
$0.03
|
|
|
$0.04
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on convertible notes
|
|
|
$0.04
|
|
|
$0.15
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash tax expense
|
|
|
$0.00
|
|
|
$0.02
|
|
|
|
|
|
|
|
|
|
|
|
(Income) related to gain on sale of long-term investment
|
|
|
($0.02)
|
|
|
($0.02)
|
|
|
|
|
|
|
|
|
|
1)
|
|
For the fiscal third quarter ending December 31, 2015 and fiscal
year ending March 31, 2016, our Non-GAAP net income per diluted
share outlook is calculated using the “if-converted” method as a
result of the issuances of our 1.75% Convertible Notes in November
2011 and 1.00% Convertible Notes in June 2013, and Non-GAAP
diluted net income for the third quarter and fiscal year is
adjusted by adding-back $1.4 million and $5.5 million,
respectively, related to coupon interest and debt issuance costs,
net of tax. Shares used to calculate our Non-GAAP net income per
diluted share outlook are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares
|
|
|
83.5 Million
|
|
|
83.5 Million
|
|
|
Add: Weighted average participating shares
|
|
|
3.0 Million
|
|
|
4.0 Million
|
|
|
Add: Potential Dilution from convertible notes
|
|
|
26.5 Million
|
|
|
26.5 Million
|
|
|
Total weighted average diluted shares
|
|
|
113.0 Million
|
|
|
114.0 Million
|
|
|
|
2)
|
|
All GAAP to Non-GAAP reconciling items are net of tax and per
share.
|
3)
|
|
The Company's stock-based compensation expense for the periods
above includes the cost of approximately 1.1 million restricted
stock units previously granted to ZelnickMedia that are subject to
variable accounting. Actual expense to be recorded in connection
with these shares is dependent upon several factors, including
future changes in Take-Two's stock price.
|
|
|
|
Key assumptions and dependencies underlying the Company’s financial
outlook include: the timely delivery of the titles included in this
financial outlook; continued consumer acceptance of the Xbox One and
PlayStation 4; the ability to develop and publish products that capture
market share for these new-generation systems while continuing to
leverage opportunities on the Xbox 360, PlayStation 3 and PC; and stable
foreign exchange rates. See also “Cautionary Note Regarding Forward
Looking Statements” below.
Product Releases
The following titles were released since July 1, 2015:
Label
|
|
|
Title
|
|
|
Platforms
|
|
|
Release Date
|
2K
|
|
|
WWE SuperCard - Season 2
|
|
|
iOS and Android Devices
|
|
|
August 20, 2015
|
2K
|
|
|
NBA 2K16
|
|
|
Xbox 360, Xbox One, PS3, PS4, PC
|
|
|
September 29, 2015
|
2K
|
|
|
My NBA 2K16
|
|
|
iOS and Android Devices
|
|
|
October 1, 2015
|
2K
|
|
|
NHL SuperCard
|
|
|
iOS and Android Devices
|
|
|
October 8, 2015
|
2K
|
|
|
Sid Meier’s Civilization Beyond Earth – Rising Tide (expansion
pack)
|
|
|
PC
|
|
|
October 9, 2015
|
2K
|
|
|
NBA 2K16
|
|
|
iOS and Android Devices
|
|
|
October 15, 2015
|
2K
|
|
|
WWE 2K16
|
|
|
Xbox 360, Xbox One, PS3, PS4
|
|
|
October 27, 2015*
|
2K
|
|
|
Evolve Ultimate Edition
|
|
|
Xbox One, PS4
|
|
|
November 3, 2015
|
|
|
|
|
|
|
|
|
|
|
*North American release date; international release date
followed three days after.
|
|
|
|
|
|
|
|
|
|
|
Take-Two's lineup of future titles announced to date includes:
Label
|
|
|
Title
|
|
|
Platforms
|
|
|
Release Date
|
2K
|
|
|
Borderlands Triple Pack
|
|
|
Xbox 360, PS3
|
|
|
November 17, 2015
|
2K
|
|
|
Civilization® Revolution™ 2 Plus
|
|
|
PlayStation Vita
|
|
|
December 3, 2015
|
2K
|
|
|
WWE 2K16: Accelerator (DLC)
|
|
|
Xbox 360, Xbox One, PS3, PS4
|
|
|
TBA
|
2K
|
|
|
WWE 2K16: MyPlayer Kickstart (DLC)
|
|
|
Xbox One, PS4
|
|
|
TBA
|
2K
|
|
|
WWE 2K16: Legends Pack (DLC)
|
|
|
Xbox 360, Xbox One, PS3, PS4
|
|
|
TBA
|
2K
|
|
|
WWE 2K16: 2015 Hall of Fame Showcase (DLC)
|
|
|
Xbox 360, Xbox One, PS3, PS4
|
|
|
TBA
|
2K
|
|
|
WWE 2K16: New Moves Pack (DLC)
|
|
|
Xbox 360, Xbox One, PS3, PS4
|
|
|
TBA
|
2K
|
|
|
WWE 2K16: Future Stars Pack (DLC)
|
|
|
Xbox 360, Xbox One, PS3, PS4
|
|
|
TBA
|
2K
|
|
|
XCOM 2
|
|
|
PC, Mac, Linux
|
|
|
February 5, 2016
|
2K
|
|
|
Battleborn
|
|
|
Xbox One, PS4, PC
|
|
|
May 3, 2016
|
2K
|
|
|
Mafia III
|
|
|
Xbox One, PS4, PC
|
|
|
Fiscal Year 2017
|
|
|
|
|
|
|
|
|
|
|
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. 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 the
following Non-GAAP items, net of applicable taxes, as discussed below:
-
Net effect from deferral in net revenues and related cost of goods
sold - the Company defers revenue and related costs from the sale
of certain titles that have undelivered elements upon the sale of the
game and recognizes that revenue upon the delivery of the undelivered
elements. The Company also defers revenue and related costs for
certain sales generated from certain titles for which we have or
expect to provide certain additional add-on content. These amounts are
deferred over the estimated remaining life of the game to which they
pertain. As there is no impact to the Company’s operating cash flow,
management excludes the impact of deferred net revenue and related
costs from its Non-GAAP financial measures when evaluating the
Company's operating performance, when planning, forecasting and
analyzing future periods, and when assessing the performance of its
management team. In addition, we believe that these Non-GAAP financial
measures provide a more timely indication of trends in our business,
provide comparability with the way our business is measured by
analysts, and provide consistency with industry data sources.
-
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 its short- and long-term operating plans. As a result, the Company
has excluded such expenses from its Non-GAAP financial measures.
-
Business reorganization, restructuring and related expenses –
although the Company has incurred business reorganization expenses in
the past, each charge relates to a discrete event based on a unique
set of business objectives. Management does not believe these charges
reflect the Company's primary business, ongoing operating results or
future outlook. As such, the Company believes it is appropriate to
exclude these expenses and related charges from its Non- GAAP
financial measures.
-
Non-cash amortization of discount on convertible notes – the
Company records non-cash amortization of discount on convertible notes
as interest expense in addition to the interest expense already
recorded for coupon payments. The Company excludes the non-cash
portion of the interest expense from its Non-GAAP financial measures
because these amounts are unrelated to its ongoing business operations.
-
Non-cash tax expense for the impact of deferred tax liabilities
associated with tax deductible amortization of goodwill – due to
the nature of the adjustment as well as the expectation that it will
not have any cash impact in the foreseeable future, the Company
believes it is appropriate to exclude this expense from its Non-GAAP
financial measures.
-
Gain on sale of long-term investment – from time to time, the
Company makes strategic investments. The Company excludes the impact
of any gains and losses on such investments from its Non-GAAP
financial measures.
These Non-GAAP financial measures 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. In the future, Take-Two may also
consider whether other items should also be excluded in calculating the
Non-GAAP financial measures used by the Company. Management believes
that the presentation of these Non-GAAP financial measures provides
investors with additional useful information to measure Take-Two's
financial and operating performance. In particular, the measures
facilitate comparison of operating performance between periods and help
investors to better understand the operating results of Take-Two by
excluding certain items that may not be indicative of the Company's core
business, operating results or future outlook. Internally, management
may use these Non-GAAP financial measures in assessing the company's
operating results and in planning and forecasting. In addition to the
Non-GAAP financial measures provided in this press release, see the
Company’s website for additional information regarding our non-GAAP
results.
Final Results
The financial results discussed herein are presented on a preliminary
basis; final data will be included in Take-Two’s Quarterly Report on
Form 10-Q for the period ended September 30, 2015.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a
leading developer, publisher and marketer of interactive entertainment
for consumers around the globe. The Company develops and publishes
products through its two wholly-owned labels Rockstar Games and 2K. Our
products are designed for console systems and personal computers,
including smartphones and tablets, and are delivered through physical
retail, digital download, online platforms and cloud streaming services.
The Company’s common stock is publicly traded on NASDAQ under the symbol
TTWO. For more corporate and product information please visit our
website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their
respective holders.
Cautionary Note Regarding Forward-Looking
Statements
The statements contained herein which are not historical facts are
considered forward-looking statements under federal securities laws and
may be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "potential," "predicts,"
"projects," "seeks," "will," or words of similar meaning and include,
but are not limited to, statements regarding the outlook for the
Company's future business and financial performance. Such
forward-looking statements are based on the current beliefs of our
management as well as assumptions made by and information currently
available to them, which are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
outcomes and results may vary materially from these forward-looking
statements based on a variety of risks and uncertainties including: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability
to develop other hit titles, the timely release and significant market
acceptance of our games, the ability to maintain acceptable pricing
levels on our games, our ability to raise capital if needed and risks
associated with international operations. Other important factors and
information are contained in the Company's Annual Report on Form 10-K
for the fiscal year ended March 31, 2015, including the risks summarized
in the section entitled "Risk Factors," the Company’s Quarterly Report
on Form 10-Q for the fiscal quarter ended June 30, 2015, and the
Company's other periodic filings with the SEC, which can be accessed at www.take2games.com.
All forward-looking statements are qualified by these cautionary
statements and apply only as of the date they are made. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
$
|
346,974
|
|
|
$
|
126,277
|
|
|
$
|
622,271
|
|
|
$
|
251,702
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold:
|
|
|
|
|
|
|
|
|
|
Internal royalties
|
|
|
|
54,918
|
|
|
|
12,413
|
|
|
|
160,747
|
|
|
|
20,711
|
|
Software development costs and royalties
|
|
|
|
40,014
|
|
|
|
16,343
|
|
|
|
90,507
|
|
|
|
36,649
|
|
Product costs
|
|
|
|
38,777
|
|
|
|
18,761
|
|
|
|
78,718
|
|
|
|
37,353
|
|
Licenses
|
|
|
|
10,231
|
|
|
|
4,499
|
|
|
|
16,583
|
|
|
|
11,459
|
|
Total cost of goods sold
|
|
|
|
143,940
|
|
|
|
52,016
|
|
|
|
346,555
|
|
|
|
106,172
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
203,034
|
|
|
|
74,261
|
|
|
|
275,716
|
|
|
|
145,530
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
|
54,876
|
|
|
|
49,136
|
|
|
|
100,443
|
|
|
|
85,982
|
|
General and administrative
|
|
|
|
49,961
|
|
|
|
43,975
|
|
|
|
98,996
|
|
|
|
83,327
|
|
Research and development
|
|
|
|
24,413
|
|
|
|
24,533
|
|
|
|
58,555
|
|
|
|
48,665
|
|
Depreciation and amortization
|
|
|
|
7,353
|
|
|
|
5,130
|
|
|
|
13,928
|
|
|
|
9,278
|
|
Total operating expenses
|
|
|
|
136,603
|
|
|
|
122,774
|
|
|
|
271,922
|
|
|
|
227,252
|
|
Income (loss) from operations
|
|
|
|
66,431
|
|
|
|
(48,513
|
)
|
|
|
3,794
|
|
|
|
(81,722
|
)
|
Interest and other, net
|
|
|
|
(8,396
|
)
|
|
|
(7,512
|
)
|
|
|
(15,930
|
)
|
|
|
(15,231
|
)
|
Gain on long-term investments, net
|
|
|
|
-
|
|
|
|
18,976
|
|
|
|
-
|
|
|
|
18,976
|
|
Income (loss) from operations before income taxes
|
|
|
|
58,035
|
|
|
|
(37,049
|
)
|
|
|
(12,136
|
)
|
|
|
(77,977
|
)
|
Provision for (benefit from) for income taxes
|
|
|
|
3,300
|
|
|
|
4,320
|
|
|
|
152
|
|
|
|
(1,205
|
)
|
Net income (loss)
|
|
|
$
|
54,735
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
$
|
0.63
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
|
$
|
0.55
|
|
|
$
|
(0.51
|
)
|
|
|
(0.15
|
)
|
|
$
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
87,560
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
Diluted
|
|
|
|
114,015
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Basic EPS:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
54,735
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
Less: net income allocated to participating securities
|
|
|
|
(2,320
|
)
|
|
|
-
|
|
|
$
|
-
|
|
|
|
-
|
|
Net income (loss) for basic EPS calculation
|
|
|
$
|
52,415
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
|
87,560
|
|
|
|
80,355
|
|
|
$
|
83,280
|
|
|
|
79,862
|
|
Less: weighted average participating shares outstanding
|
|
|
|
(3,711
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Weighted average common shares outstanding - basic
|
|
|
|
83,849
|
|
|
|
80,355
|
|
|
$
|
83,280
|
|
|
|
79,862
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
$
|
0.63
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
|
Computation of Diluted EPS:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
54,735
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
Less: net income allocated to participating securities
|
|
|
|
(1,782
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Add: interest expense, net of tax, on Convertible Notes
|
|
|
|
7,994
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net income (loss) for diluted EPS calculation
|
|
|
$
|
60,947
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
|
83,849
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
Add: dilutive effect of common stock equivalents
|
|
|
|
30,166
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total weighted average shares outstanding - diluted
|
|
|
|
114,015
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
Less: weighted average participating shares outstanding
|
|
|
|
(3,711
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
110,304
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
$
|
0.55
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
March 31,
|
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
|
|
|
|
ASSETS
|
|
|
(Unaudited)
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
711,713
|
|
|
$
|
911,120
|
|
Short-term investments
|
|
|
|
352,961
|
|
|
|
186,929
|
|
Restricted cash
|
|
|
|
215,226
|
|
|
|
169,678
|
|
Accounts receivable, net of allowances of $55,105 and $70,471 at
September 30, 2015 and
|
|
|
|
|
|
March 31, 2015, respectively
|
|
|
|
240,859
|
|
|
|
217,860
|
|
Inventory
|
|
|
|
24,020
|
|
|
|
20,051
|
|
Software development costs and licenses
|
|
|
|
240,329
|
|
|
|
163,385
|
|
Deferred cost of goods sold
|
|
|
|
111,885
|
|
|
|
56,779
|
|
Prepaid expenses and other
|
|
|
|
67,615
|
|
|
|
55,506
|
|
Total current assets
|
|
|
|
1,964,608
|
|
|
|
1,781,308
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
|
81,694
|
|
|
|
69,792
|
|
Software development costs and licenses, net of current portion
|
|
|
|
128,939
|
|
|
|
124,329
|
|
Deferred cost of goods sold, net of current portion
|
|
|
|
5,428
|
|
|
|
19,869
|
|
Goodwill
|
|
|
|
217,731
|
|
|
|
217,288
|
|
Other intangibles, net
|
|
|
|
4,609
|
|
|
|
4,769
|
|
Other assets
|
|
|
|
13,490
|
|
|
|
13,745
|
|
Total assets
|
|
|
$
|
2,416,499
|
|
|
$
|
2,231,100
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
69,138
|
|
|
$
|
38,789
|
|
Accrued expenses and other current liabilities
|
|
|
|
467,856
|
|
|
|
444,738
|
|
Deferred revenue
|
|
|
|
676,891
|
|
|
|
482,733
|
|
Total current liabilities
|
|
|
|
1,213,885
|
|
|
|
966,260
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
487,601
|
|
|
|
476,057
|
|
Non-current deferred revenue
|
|
|
|
85,242
|
|
|
|
164,618
|
|
Other long-term liabilities
|
|
|
|
65,706
|
|
|
|
61,077
|
|
Total liabilities
|
|
|
|
1,852,434
|
|
|
|
1,668,012
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock, $.01 par value, 5,000 shares authorized
|
|
|
|
-
|
|
|
|
-
|
|
Common stock, $.01 par value, 200,000 shares authorized; 104,160 and
104,594 shares
|
|
|
|
|
|
issued and 86,968 and 88,356 outstanding at September 30, 2015 and
March 31, 2015, respectively
|
|
|
|
1,042
|
|
|
|
1,046
|
|
Additional paid-in capital
|
|
|
|
1,066,743
|
|
|
|
1,028,197
|
|
Treasury stock, at cost; 17,192 and 16,238 common shares at
September 30, 2015 and March 31, 2015, respectively
|
|
|
|
(303,388
|
)
|
|
|
(276,836
|
)
|
Accumulated deficit
|
|
|
|
(170,983
|
)
|
|
|
(158,695
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(29,349
|
)
|
|
|
(30,624
|
)
|
Total stockholders' equity
|
|
|
|
564,065
|
|
|
|
563,088
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
2,416,499
|
|
|
$
|
2,231,100
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Six months ended September 30,
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
Amortization and impairment of software development costs and
licenses
|
|
|
|
40,719
|
|
|
|
10,136
|
|
|
Depreciation and amortization
|
|
|
|
13,928
|
|
|
|
9,278
|
|
|
Amortization and impairment of intellectual property
|
|
|
|
160
|
|
|
|
259
|
|
|
Stock-based compensation
|
|
|
|
35,406
|
|
|
|
23,846
|
|
|
Deferred income taxes
|
|
|
|
68
|
|
|
|
599
|
|
|
Amortization of discount on Convertible Notes
|
|
|
|
11,544
|
|
|
|
10,840
|
|
|
Amortization of debt issuance costs
|
|
|
|
792
|
|
|
|
853
|
|
|
Gain on of long-term investments, net
|
|
|
|
-
|
|
|
|
(18,976
|
)
|
|
Other, net
|
|
|
|
1,102
|
|
|
|
181
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Restricted cash
|
|
|
|
(45,548
|
)
|
|
|
116,296
|
|
|
Accounts receivable
|
|
|
|
(22,668
|
)
|
|
|
27,716
|
|
|
Inventory
|
|
|
|
(3,755
|
)
|
|
|
(26,168
|
)
|
|
Software development costs and licenses
|
|
|
|
(117,959
|
)
|
|
|
(104,492
|
)
|
|
Prepaid expenses, other current and other non-current assets
|
|
|
|
(13,250
|
)
|
|
|
(5,847
|
)
|
|
Deferred revenue
|
|
|
|
113,042
|
|
|
|
46,765
|
|
|
Deferred cost of goods sold
|
|
|
|
(38,440
|
)
|
|
|
(1,644
|
)
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
|
57,161
|
|
|
|
(144,692
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
20,014
|
|
|
|
(131,822
|
)
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
Purchase of fixed assets
|
|
|
|
(25,793
|
)
|
|
|
(23,054
|
)
|
|
Purchases of short-term investments, net
|
|
|
|
(167,388
|
)
|
|
|
(49,591
|
)
|
|
Cash received from the sale of long-term investment
|
|
|
|
-
|
|
|
|
21,976
|
|
|
Net cash used in investing activities
|
|
|
|
(193,181
|
)
|
|
|
(50,669
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
9,529
|
|
|
|
4,843
|
|
|
Tax payment related to net share settlements on restricted stock
awards
|
|
|
|
(10,386
|
)
|
|
|
-
|
|
|
Repurchase of common stock
|
|
|
|
(26,552
|
)
|
|
|
-
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
(27,409
|
)
|
|
|
4,843
|
|
|
|
|
|
|
|
|
|
Effects of foreign exchange rates on cash and cash equivalents
|
|
|
|
1,169
|
|
|
|
(3,342
|
)
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
(199,407
|
)
|
|
|
(180,990
|
)
|
|
Cash and cash equivalents, beginning of year
|
|
|
|
911,120
|
|
|
|
935,400
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
711,713
|
|
|
$
|
754,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
RECONCILIATION OF GAAP TO Non-GAAP MEASURES (Unaudited)
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Revenues
|
|
$
|
346,974
|
|
|
$
|
126,277
|
|
|
$
|
622,271
|
|
|
$
|
251,702
|
|
|
|
|
Net effect from deferral in net revenues
|
|
|
17,956
|
|
|
|
9,165
|
|
|
|
109,051
|
|
|
|
35,351
|
|
|
Non-GAAP Net Revenues
|
|
$
|
364,930
|
|
|
$
|
135,442
|
|
|
|
731,322
|
|
|
$
|
287,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital Online Revenues (included in Net Revenues above)
|
|
|
|
|
|
|
|
|
|
GAAP Digital Online Revenues
|
|
$
|
202,426
|
|
|
$
|
80,646
|
|
|
$
|
356,411
|
|
|
$
|
160,847
|
|
|
|
|
Net effect from deferral in digital online revenues
|
|
|
(61,414
|
)
|
|
|
9,165
|
|
|
|
38,564
|
|
|
|
35,351
|
|
|
Non-GAAP Digital Online Revenues
|
|
$
|
141,012
|
|
|
$
|
89,811
|
|
|
$
|
394,975
|
|
|
$
|
196,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross Profit
|
|
$
|
203,034
|
|
|
$
|
74,261
|
|
|
$
|
275,716
|
|
|
$
|
145,530
|
|
|
|
|
Net effect from deferral in net revenues and related cost of goods
sold
|
|
|
(31,075
|
)
|
|
|
3,831
|
|
|
|
59,890
|
|
|
|
19,149
|
|
|
|
|
Stock-based compensation
|
|
|
4,110
|
|
|
|
1,268
|
|
|
|
8,804
|
|
|
|
2,739
|
|
|
Non-GAAP Gross Profit
|
|
|
176,069
|
|
|
$
|
79,360
|
|
|
$
|
344,410
|
|
|
$
|
167,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Operations
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss) from Operations
|
|
$
|
66,431
|
|
|
$
|
(48,513
|
)
|
|
$
|
3,794
|
|
|
$
|
(81,722
|
)
|
|
|
|
Net effect from deferral in net revenues and related cost of goods
sold
|
|
|
(31,075
|
)
|
|
|
3,831
|
|
|
|
59,890
|
|
|
|
19,149
|
|
|
|
|
Stock-based compensation
|
|
|
16,321
|
|
|
|
13,867
|
|
|
|
35,406
|
|
|
|
23,846
|
|
|
|
|
Business reorganization, restructuring and related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
1,228
|
|
|
|
195
|
|
|
Non-GAAP Income (Loss) from Operations
|
|
$
|
51,677
|
|
|
$
|
(30,815
|
)
|
|
$
|
100,318
|
|
|
$
|
(38,532
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income (Loss)
|
|
$
|
54,735
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
|
|
Net effect from deferral in net revenues and related cost of goods
sold
|
|
|
(37,258
|
)
|
|
|
2,408
|
|
|
|
47,906
|
|
|
|
14,165
|
|
|
|
|
Stock-based compensation
|
|
|
11,237
|
|
|
|
10,082
|
|
|
|
22,564
|
|
|
|
17,741
|
|
|
|
|
Gain on long-term investments, net
|
|
|
-
|
|
|
|
(10,940
|
)
|
|
|
-
|
|
|
|
(10,940
|
)
|
|
|
|
Business reorganization, restructuring and related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
773
|
|
|
|
156
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
3,660
|
|
|
|
3,938
|
|
|
|
7,263
|
|
|
|
8,065
|
|
|
|
|
Non-cash tax expense
|
|
|
326
|
|
|
|
472
|
|
|
|
690
|
|
|
|
945
|
|
|
Non-GAAP Net Income (Loss)
|
|
$
|
32,700
|
|
|
$
|
(35,409
|
)
|
|
$
|
66,908
|
|
|
$
|
(46,640
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) Per Share
|
|
|
|
|
|
|
|
|
|
GAAP earnings (loss) per share
|
|
$
|
0.55
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.96
|
)
|
|
Non-GAAP earnings (loss) per share
|
|
$
|
0.30
|
|
|
$
|
(0.44
|
)
|
|
$
|
0.61
|
|
|
$
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of diluted shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
114,015
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
|
Non-GAAP
|
|
|
114,015
|
|
|
|
80,355
|
|
|
|
114,157
|
|
|
|
79,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Diluted GAAP EPS:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
54,735
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
|
Less: net income allocated to participating securities
|
|
|
(1,782
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Add: interest expense, net of tax, on Convertible Notes
|
|
|
7,994
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Net income (loss) for diluted EPS calculation
|
|
$
|
60,947
|
|
|
$
|
(41,369
|
)
|
|
$
|
(12,288
|
)
|
|
$
|
(76,772
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
83,849
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
Add: dilutive effect of common stock equivalents
|
|
|
30,166
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Total weighted average shares outstanding - diluted
|
|
|
114,015
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
Less: weighted average participating shares outstanding
|
|
|
(3,711
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
110,304
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.55
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.96
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Diluted Non-GAAP EPS:
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
|
|
$
|
32,700
|
|
|
$
|
(35,409
|
)
|
|
$
|
66,908
|
|
|
$
|
(46,640
|
)
|
|
|
Less: net income (loss) allocated to participating securities
|
|
|
(1,064
|
)
|
|
|
-
|
|
|
|
(2,592
|
)
|
|
|
-
|
|
|
|
Add: interest expense, net of tax, on Convertible Notes
|
|
|
1,371
|
|
|
|
-
|
|
|
|
2,742
|
|
|
|
-
|
|
|
|
|
Net income (loss) for diluted earnings per share calculation
|
|
$
|
33,007
|
|
|
$
|
(35,409
|
)
|
|
$
|
67,058
|
|
|
$
|
(46,640
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
83,849
|
|
|
|
80,355
|
|
|
|
83,280
|
|
|
|
79,862
|
|
|
|
Add: dilutive effect of common stock equivalents
|
|
|
30,166
|
|
|
|
-
|
|
|
|
30,877
|
|
|
|
-
|
|
|
|
|
Total weighted average shares outstanding - diluted
|
|
|
114,015
|
|
|
|
80,355
|
|
|
|
114,157
|
|
|
|
79,862
|
|
|
|
Less: weighted average participating shares outstanding
|
|
|
(3,711
|
)
|
|
|
-
|
|
|
|
(4,422
|
)
|
|
|
-
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
110,304
|
|
|
|
80,355
|
|
|
|
109,735
|
|
|
|
79,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.30
|
|
|
$
|
(0.44
|
)
|
|
$
|
0.61
|
|
|
$
|
(0.58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
Net Revenue by Geographic Region, Distribution Channel, and
Platform Mix
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended
September 30, 2014
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
185,102
|
|
|
53
|
%
|
|
$
|
59,322
|
|
47
|
%
|
International
|
|
|
|
161,872
|
|
|
47
|
%
|
|
|
66,955
|
|
53
|
%
|
Total GAAP net revenues
|
|
|
|
346,974
|
|
|
100
|
%
|
|
|
126,277
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
33,740
|
|
|
|
|
$
|
3,436
|
|
|
International
|
|
|
|
(15,784
|
)
|
|
|
|
|
5,729
|
|
|
Total changes in deferred net revenues
|
|
|
|
17,956
|
|
|
|
|
|
9,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
218,842
|
|
|
60
|
%
|
|
$
|
62,758
|
|
46
|
%
|
International
|
|
|
|
146,088
|
|
|
40
|
%
|
|
|
72,684
|
|
54
|
%
|
Total non-GAAP net revenues
|
|
|
$
|
364,930
|
|
|
100
|
%
|
|
$
|
135,442
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended
September 30, 2014
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Revenues by Distribution Channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
202,426
|
|
|
58
|
%
|
|
$
|
80,646
|
|
64
|
%
|
Physical retail and other
|
|
|
|
144,548
|
|
|
42
|
%
|
|
|
45,631
|
|
36
|
%
|
Total GAAP net revenues
|
|
|
|
346,974
|
|
|
100
|
%
|
|
|
126,277
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
(61,414
|
)
|
|
|
|
$
|
9,165
|
|
|
Physical retail and other
|
|
|
|
79,370
|
|
|
|
|
|
-
|
|
|
Total changes in deferred net revenues
|
|
|
|
17,956
|
|
|
|
|
|
9,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Revenues by Distribution Channel
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
141,012
|
|
|
39
|
%
|
|
$
|
89,811
|
|
66
|
%
|
Physical retail and other
|
|
|
|
223,918
|
|
|
61
|
%
|
|
|
45,631
|
|
34
|
%
|
Total non-GAAP net revenues
|
|
|
$
|
364,930
|
|
|
100
|
%
|
|
|
135,442
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended
September 30, 2014
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
GAAP Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
301,029
|
|
|
87
|
%
|
|
$
|
93,684
|
|
74
|
%
|
PC and other
|
|
|
|
45,945
|
|
|
13
|
%
|
|
|
32,593
|
|
26
|
%
|
Total GAAP net revenues
|
|
|
|
346,974
|
|
|
100
|
%
|
|
|
126,277
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
15,621
|
|
|
|
|
$
|
6,901
|
|
|
PC and other
|
|
|
|
2,335
|
|
|
|
|
|
2,264
|
|
|
Total changes in deferred net revenues
|
|
|
|
17,956
|
|
|
|
|
|
9,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
316,650
|
|
|
87
|
%
|
|
$
|
100,585
|
|
74
|
%
|
PC and other
|
|
|
|
48,280
|
|
|
13
|
%
|
|
|
34,857
|
|
26
|
%
|
Total non-GAAP net revenues
|
|
|
$
|
364,930
|
|
|
100
|
%
|
|
|
135,442
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
Net Revenue by Geographic Region, Distribution Channel, and
Platform Mix
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2015
|
|
Six Months Ended
September 30, 2014
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
328,540
|
|
|
53
|
%
|
|
$
|
124,166
|
|
49
|
%
|
International
|
|
|
|
293,731
|
|
|
47
|
%
|
|
|
127,536
|
|
51
|
%
|
Total GAAP net revenues
|
|
|
|
622,271
|
|
|
100
|
%
|
|
|
251,702
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
41,658
|
|
|
|
|
$
|
19,170
|
|
|
International
|
|
|
|
67,393
|
|
|
|
|
|
16,181
|
|
|
Total changes in deferred net revenues
|
|
|
|
109,051
|
|
|
|
|
|
35,351
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
370,198
|
|
|
51
|
%
|
|
$
|
143,336
|
|
50
|
%
|
International
|
|
|
|
361,124
|
|
|
49
|
%
|
|
|
143,717
|
|
50
|
%
|
Total non-GAAP net revenues
|
|
|
$
|
731,322
|
|
|
100
|
%
|
|
$
|
287,053
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2015
|
|
Six Months Ended
September 30, 2014
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Revenues by Distribution Channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
356,411
|
|
|
57
|
%
|
|
$
|
160,847
|
|
64
|
%
|
Physical retail and other
|
|
|
|
265,860
|
|
|
43
|
%
|
|
|
90,855
|
|
36
|
%
|
Total GAAP net revenues
|
|
|
|
622,271
|
|
|
100
|
%
|
|
|
251,702
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
38,564
|
|
|
|
|
$
|
35,351
|
|
|
Physical retail and other
|
|
|
|
70,487
|
|
|
|
|
|
-
|
|
|
Total changes in deferred net revenues
|
|
|
|
109,051
|
|
|
|
|
|
35,351
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Revenues by Distribution Channel
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
394,975
|
|
|
54
|
%
|
|
$
|
196,198
|
|
68
|
%
|
Physical retail and other
|
|
|
|
336,347
|
|
|
46
|
%
|
|
|
90,855
|
|
32
|
%
|
Total non-GAAP net revenues
|
|
|
$
|
731,322
|
|
|
100
|
%
|
|
$
|
287,053
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2015
|
|
Six Months Ended
September 30, 2014
|
|
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
GAAP Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
523,603
|
|
|
84
|
%
|
|
$
|
177,454
|
|
71
|
%
|
PC and other
|
|
|
|
98,668
|
|
|
16
|
%
|
|
|
74,248
|
|
29
|
%
|
Total GAAP net revenues
|
|
|
|
622,271
|
|
|
100
|
%
|
|
|
251,702
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
(21,684
|
)
|
|
|
|
$
|
31,317
|
|
|
PC and other
|
|
|
|
130,735
|
|
|
|
|
|
4,034
|
|
|
Total changes in deferred net revenues
|
|
|
|
109,051
|
|
|
|
|
|
35,351
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
501,919
|
|
|
69
|
%
|
|
$
|
208,771
|
|
73
|
%
|
PC and other
|
|
|
|
229,403
|
|
|
31
|
%
|
|
|
78,282
|
|
27
|
%
|
Total non-GAAP net revenues
|
|
|
$
|
731,322
|
|
|
100
|
%
|
|
|
287,053
|
|
100
|
%
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20151105006576/en/
Source: Take-Two Interactive
Take-Two Interactive Software, Inc. Investor Relations: Henry
A. Diamond, 646-536-3005 Senior Vice President Investor
Relations & Corporate Communications Henry.Diamond@take2games.com or Corporate
Press: Alan Lewis, 646-536-2983 Vice President Corporate
Communications & Public Affairs Alan.Lewis@take2games.com
|