Take-2 starts bounce back?

[TheBadazz]

Take-Two Interactive Software, Inc. Reports First Quarter Fiscal 2007 Financial Results

New York, NY – 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®.

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® 2K7, along with the contribution of higher margin titles such as Grand Theft Auto: Liberty City Stories for the PlayStation® 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.
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Hmmmm. NBA 2k7 is one of the highlights of the first quarter.

[Jon22]

Re: Take-2 starts bounce back?

Thats good news.

[jmood88]

Re: Take-2 starts bounce back?

Well there goes the theory that 2k sports is the reason they're losing money.

[jdros13]

Re: Take-2 starts bounce back?

Well there goes the theory that 2k sports is the reason they're losing money.

Where was that theory?

I did say in another thread that 2k Sports wasn't contributing as much as they probably projected when they purchased it (you know, back when they had a football game, didn't have to pay for psuedo-exclusives in other sports, etc). I don't think anyone ever said it was "the reason they are losing money." I'm also pretty confident they were hoping that their sports games would come a little closer to outselling their EA counterparts...

They have one cash cow at that company: GTA...they need to have some consistent producers to keep them from losing money in the non-GTA years.

I wouldn't exactly start up the band to celebrate this news either...what the article says is that they lost less money for this quarter than they did in the previous year...they still lost $21.5 million.

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.

It is nice that their cash position improved, and it is a better sign, but losing $21.5 million is still not a good thing.

[jmood88]

Re: Take-2 starts bounce back?

Where was that theory?

I did say in another thread that 2k Sports wasn't contributing as much as they probably projected when they purchased it (you know, back when they had a football game, didn't have to pay for psuedo-exclusives in other sports, etc). I don't think anyone ever said it was "the reason they are losing money." I'm also pretty confident they were hoping that their sports games would come a little closer to outselling their EA counterparts...

They have one cash cow at that company: GTA...they need to have some consistent producers to keep them from losing money in the non-GTA years.

I wouldn't exactly start up the band to celebrate this news either...what the article says is that they lost less money for this quarter than they did in the previous year...they still lost $21.5 million.



It is nice that their cash position improved, and it is a better sign, but losing $21.5 million is still not a good thing.

There were a lot of people in other threads saying that and they were saying that that's the reason why ea might buy 2k sports from Take 2.

[luv_mist]

Re: Take-2 starts bounce back?

No offense jdros but it is a reason to celebrate. The fees from their legal issues were the reasons why they got that big loss. Didn't have anything to do with anything else. Reading that really makes me believe that T2 can battle against EA. They have high quality games and aren't bleeding money like so many thought. Says that the 21.5 mil loss included 6.4 in legal and professional fees, 6.1 for deferred tax assets, and 2.2 in compensation. Might not seem that good but I'm pretty sure they'll be in the positive after all this stuff. This really makes me happy because the company will be more willing to give money for the games to improve. NBA 2K, APF 2K, MLB 2K, ect. will be getting their due finances to improve accordingly. Great news for people who are fans of innovation. Guess EA ain't buying the 2K franchise. Thank the ALMIGHTY!!

[HMcCoy]

Re: Take-2 starts bounce back?

Thanks to Live's suckiness, 2k has finally penetrated the hood. Thanks EA.

[DaveDQ]

Re: Take-2 starts bounce back?

It's good to see something on the positive side for Take 2. I still say the focus on next-gen was the right thing to do, and I think by the end of this year, it'll prove true.

T2 isn't EA, as far as revenue goes, they don't have the resources to commit to every single device that plays a game like EA does.

With Bioshock and GTA along side what will be a great year for NBA 2K8, I think T2 will have a great year.

[luv_mist]

Re: Take-2 starts bounce back?

Not to mention the Darkness and APF 2K8. As a matter of fact, they have a few games coming out this year that they're publishing. Oh, it was wonderful that they penetrated more of the market. I remember reading that article speaking on how they wanted to establish a name on the 360 & PS3 right out of the gate. Oh, this could really be huge in the future.

[Lintyfresh85]

Re: Take-2 starts bounce back?

how is this positive?!?! They lost 21 million dollars this quarter! Not made, but LOST!

Losing 21 million more than you make is bad anyway you slice it.

[DaveDQ]

Re: Take-2 starts bounce back?

how is this positive?!?! They lost 21 million dollars this quarter! Not made, but LOST!

Losing 21 million more than you make is bad anyway you slice it.

They are claiming that a good amount of that is legal fees and the burden of switching over to next-gen. I suppose it's good news because it's not as much of a loss compared to last year, and I think it'll only get better for them as more games are on the horizon, and MLB 2K7 has hit.

[Pared]

Re: Take-2 starts bounce back?

I wouldn't exactly start up the band to celebrate this news either

*starts up band*

[luv_mist]

Re: Take-2 starts bounce back?

*starts up band*

LOL!!

A lot of you guys have to realize that losing money is a big part of the business. Just the fact that those games are making them more money than expected is great. It means that the heads of the company might give them more slack. By the way, wouldn't the lossing less be a result of what the CEO might have done? I wonder if he was a good CEO in that position. I just thought about that. He just got tossed a few ago right? Mercy, I just went into a slump of depressiong thinking about what they'd end up doing with a new head. Could have another EA clone in the making.......