Take-Two Halves Losses; Q1 Guidance Disappoints

Dec.18.07 | About: Take-Two Interactive (TTWO)

Take-Two Interactive (NASDAQ:TTWO) posted a smaller loss in the company's fiscal fourth quarter and beat estimates, but shares sank on a weaker-than expected outlook for the coming quarter. The video game developer's net loss came in at $7.1 million ($0.10/share) compared to a loss of $14.0 million ($0.20/share) last year. Revenue increased 9.7% to $292.6 million. Analysts were expecting a loss of $0.23/share on sales of $293 million. "Sales were led by BioShock, NBA 2K8 and Carnival Games, all of which were new titles released this quarter, as well as Grand Theft Auto catalog titles," the company said (full earnings call transcript later today).

For FQ1 2008, Take-Two expects a loss of $0.50-$0.60/share on $175 million to $225 million in revenue, well below the average forecast of a loss of $0.08/share on revenue of nearly $290 million. "Take-Two enters fiscal 2008 with the strongest, most diverse product lineup in our history - much of it internally developed and owned IP - which positions us well for the continued growth of the interactive entertainment market," CEO Ben Feder said. "We are building on our existing franchises while creating new hits such as the award-winning BioShock and Carnival Games." Games due out in 2008 include Grand Theft Auto IV (Q2), Midnight Club: Los Angeles, Bully: Scholarship Edition, Sid Meier's Civilization: Revolution, Major League Baseball 2K8 and NBA 2K9 -- all of which sold over 1 million copies of previous versions. New brands including Borderlands and Don King Presents: Prizefighter and Nick Jr. titles. For the full-year, Take-Two reiterated its previous outlook of a profit of $1.30-$1.50/share on $1.1-$1.4 billion in revenue. Analysts have projected sales of $1.36 billion for 2008. Shares of the company fell after the release, trading down 4.6% to $17.20.

Sources: Press release

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.