Take-Two has announced financial results for the quarter ending April 30, 2007, posting net revenues of USD 205.4 million - down by almost USD 60 million compared to the same period last year.
Take-Two attributed the decrease in net revenue to significant sales of The Elder Scrolls IV: Oblivion in 2006. Net losses for the recent quarter were USD 51.2 million, or USD .71 per share, an increase of USD .8 million compared to the second quarter of fiscal 2006.
Take-Two said its operating results benefited from the closing of development studios in the prior year, but were offset by expenses associated with stock option grant investigations and responses to the New York County District Attorney's subpoenas as well as recent business reorganisation expenses.
As part of Take-Two's restructuring, the company plans to consolidate the management, marketing and business development operations of the 2K and 2K Sports labels on the West Coast and consolidate third-party PC distribution into North American sales. There are also plans to realign the company's international operations according to business discipline rather than geography.
In addition, Take-Two has announced the appointment of Lainie Goldstein, most recently the senior VP of finance and interim CFO, as permanent CFO.
"When our management team took on a leadership role at Take-Two, we committed ourselves to making this the most creative, the most innovative and the most efficient company in our industry," said chairman Strauss Zelnick.
"We also pledged to our shareholders and employees that we would present a detailed action plan within our first 100 days. With over one month remaining, we have already made significant progress in assessing the organisation and launching a major restructuring initiative."
Take-Two's upcoming releases include All-Pro Football 2K8, Fantastic 4: Rise of the Silver Surfer, Manhunt 2, The BIGS and The Darkness in its third fiscal quarter 2007, and BioShock, Carnival Games, Grand Theft Auto IV, NBA 2K8, and NHL 2K8 for Q4.
Games announed for 2008 include Beaterator, College Hoops 2K8, Grand Theft Auto IV - Episodic Content, L.A. Noire, Midnight Club: Los Angeles, Major League Baseball 2K8, NBA 2K9 and NHL 2K9.