Summary
Take-Two Interactive Software, Inc. (TTWO) reported a net loss of $47.4 million for the third quarter of fiscal year 2011, a significant downturn compared to a net income of $3.3 million in the same period last year. This loss translates to a diluted loss per share of $0.57. The decline in revenue was primarily attributed to the absence of major releases like 'Red Dead Redemption' and 'Mafia II' in the current quarter, which were strong contributors in the prior year. While 'L.A. Noire' showed some positive contribution, it was not enough to offset the revenue gap. The company's financial position shows a decrease in cash and cash equivalents to $269.7 million from $280.4 million at the end of the previous fiscal year, largely due to operating and investing activities. The balance sheet indicates a significant increase in inventory and software development costs, suggesting investment in future product pipelines, alongside a decrease in accounts receivable. Despite the net loss, the company remains compliant with its credit agreement covenants.
Financial Highlights
49 data points| Revenue | $107.03M |
| Cost of Revenue | $74.70M |
| Gross Profit | $32.33M |
| Operating Expenses | $73.84M |
| Operating Income | -$41.51M |
| Net Income | -$47.37M |
| EPS (Basic) | $-0.57 |
| EPS (Diluted) | $-0.57 |
| Shares Outstanding (Basic) | 82.94M |
| Shares Outstanding (Diluted) | 82.94M |
Key Highlights
- 1Net loss of $47.4 million for the three months ended September 30, 2011, compared to a net income of $3.3 million in the prior year.
- 2Diluted loss per share of $0.57 for the quarter, versus diluted earnings per share of $0.04 in the prior year.
- 3Net revenue decreased significantly by 56.3% to $107.0 million from $244.9 million year-over-year, primarily due to the lack of major title releases compared to the prior year.
- 4Cash and cash equivalents decreased to $269.7 million from $280.4 million at the end of the fiscal year.
- 5Inventory increased to $45.1 million from $24.6 million, and software development costs and licenses increased significantly.
- 6The company has a new Credit Agreement in place as of October 2011, providing up to $100 million in borrowings.
- 7The legal proceeding 'Wilamowsky v. Take-Two et al.' was dismissed with prejudice on September 30, 2011.