For the third quarter ending in July, the company sees revenue of $195 million to $215 million, and a loss of 60-65 cents a share GAAP, or 54-59 cents non-GAAP. For the fourth quarter, the company sees revenue of $520 million to $550 million and EPS of $1.35 to $1.40 a share GAAP, $1.41 to $1.46 non-GAAP. The company repeated its full year forecast of revenue of $1.2 billion to $1.25 billion with break-even results on a GAAP basis.
The company also announced a restructuring plan designed to cut its annual fixed expenses by $25 million. The restructuring moves will require a $15 million charge to earnings.
The restructuring plan includes the following steps, according to the company’s release:
Restructure Take-Two’s international operations to consolidate and align the marketing, sales and operational functions according to business discipline rather than geography to create a more efficient and responsive international organization. Realign label and studio administrative functions to report to the respective departments at the corporate level, thereby ensuring increased control and accountability. Consolidate the management, marketing and business development operations of the 2K and 2K Sports labels on the West Coast to improve access to resources, work more closely with the sports development teams, and provide a centralized organization to increase efficiency and better support the growth of these labels. Consolidate third-party PC distribution into North American sales.
In after hours trading, Take-Two rose 21 cents to $19.15; the stock gained 29 cents in the regular session.