Take Two announces Q3 results

Take-Two has announced its third-quarter 2007 earnings, showing a 34.8 million decrease in net revenue.

The company has also stated that its ongoing restructuring will see further job cuts during the financial year.

"The Company expects that additional restructuring costs will be recorded in the fourth quarter of 2007 and into the 2008 fiscal year. Such costs are expected to relate to further headcount reduction, asset write-offs and associated professional fees," said the company.

Net revenue for the third quarter was USD 206.4 million, compared to USD 241.2 million for the same period of fiscal 2006. Take-Two's net loss for the third quarter was USD 58.5 million or USD 0.81 per share, compared to a net loss of USD 91.4 million or USD 1.29 per share in the third quarter of fiscal 2006.

As compared with the year-ago period, the 2007 third quarter results reflected a decrease in product costs, software development costs, royalties and operating expenses. The third quarter 2007 loss includes pre-tax expenses totaling USD 12.4 million for business reorganisation and related costs due to Take-Two's management changes, restructuring expenses, legal expenses and other professional fees.

"Today we are establishing guidance for fiscal 2008 - the first full year to reflect the contributions of our new management team," said chairman Strauss Zelnick. "Our outlook reflects a strong product pipeline, the benefits of a comprehensive restructuring and cost-efficiency program, including the sale of our non-core Joytech accessories division, and the expected profitability of our sports business."

"We also are announcing a new publishing label - 2K Play - focused on the expanding casual gamer market. We are proud of what this Company's management team has accomplished in a short time, and confident that our efforts will build the value of Take-Two in the future."

Take-Two's Q3 earnings do not reflect the release of Bioshock, which has already shipped over 1.5 million units since its release in late August.

The company is reiterating its previous guidance for the fourth quarter ending October 31, 2007. For the fiscal year ending October 31, 2008, the company forecasts GAAP earnings per share of USD 0.80 to 1.00 based upon revenues of USD 1.1 to 1.4 billion.

Take-Two's announced releases for fiscal 2008 include: Bully: Scholarship Edition (360, Wii), College Hoops 2K8, NBA 2K9, NHL 2K9, Top Spin 3, Borderlands, Midnight Club: Los Angeles, Sid Meier's Civilization: Revolution, Grand Theft Auto IV, and episodic content for GTA IV still listed only for Xbox 360.

L.A. Noire and Beaterator, originally scheduled for a FY 2008 release, have been moved into 2009.