Take-Two Interactive Software, Inc. Reports Third Quarter Fiscal 2010 Financial Results
September, 2 2010
Guidance Raised for Fiscal 2010; Company Expects to Report Non-GAAP EPS of $0.60 to $0.70 per Diluted Share for this Fiscal Year
New York, NY – September 2, 2010– Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its third quarter ended July 31, 2010.
Net revenue for the third fiscal quarter was $354.1 million, a sharp increase compared to $94.9 million reported for the same quarter of fiscal 2009.
Take-Two attributed its significantly better-than-expected results for the fiscal 2010 third quarter primarily to the strong performance of Red Dead Redemption, which has sold in more than 6.9 million units worldwide since its launch in May 2010. The Company’s catalog also contributed to its third quarter sales, including Grand Theft Auto: Episodes from Liberty City, Grand Theft Auto IV, NBA® 2K10 and Borderlands™. In addition, digitally delivered content has continued to be a meaningful component of Take-Two’s sales.
Income from continuing operations for the third quarter was $12.4 million or $0.14 per diluted share, compared to a loss from continuing operations of $58.3 million or $0.76 per share in the third quarter of fiscal 2009. Excluding certain non-cash and non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, non-GAAP net income was $26.0 million or $0.28 per diluted share in the third quarter of fiscal 2010, compared to a non-GAAP net loss of $52.3 million or $0.68 per share in the third quarter of 2009.
For the nine months ended July 31, 2010, net revenue was $785.3 million, compared to $418.5 million for the same period a year ago. Loss from continuing operations for the first nine months of fiscal 2010 was $4.5 million or $0.06 per share, compared to loss from continuing operations of $122.6 million or $1.60 per share for the 2009 period. Excluding certain non-cash and non-operational gains and losses identified on the attached reconciliation of GAAP and non-GAAP measures, non-GAAP net income was $33.6 million or $0.39 per diluted share in the first nine months of 2010, compared to a non-GAAP net loss of $98.3 million or $1.28 per share in the comparable period of 2009.
- Rockstar Games launchedRed Dead Redemption on May 18, during the Company’s third fiscal quarter. The title has sold in over 6.9 million units worldwide to date and has been a commercial and critical success, with a near-perfect score of 95* from Metacritic.com.
- Rockstar Games announced a robust plan to support Red Dead Redemption with several downloadable content packs.
- 2K Sports announced that it signed NBA legend, Michael Jordan, to be the cover athlete for NBA® 2K11.
- 2K Games announced new downloadable content packs for BioShock® 2 and Borderlands™ that are planned for release during the Company’s fourth fiscal quarter.
- The release of L.A. Noire is now expected during the first half of calendar 2011.
- 2K Games and its studio, Irrational Games, announced that BioShock® Infinite is in development and planned for release during calendar 2012.
Take-Two is increasing its guidance for the fourth quarter and fiscal year ending October 31, 2010, and currently expects to be profitable for the full fiscal year. In addition to the continued strength of Red Dead Redemption, this outlook reflects the contributions ofBorderlands™, NBA® 2K10, BioShock® 2 and various catalog titles during the first nine months of the fiscal year, as well as a fourth quarter roster led by Mafia® II, NBA® 2K11 and Sid Meier’s Civilization® V. This revised guidance also reflects the movement of L.A. Noire out of the fourth quarter of fiscal 2010.