Summary
Take-Two Interactive Software, Inc. (TTWO) reported its financial results for the fiscal quarter and six months ended September 30, 2012. The company experienced a significant increase in net revenue for the three months ended September 30, 2012, driven by new releases such as Borderlands 2, Spec Ops: The Line, and Max Payne 3. However, the six-month period showed a more modest revenue increase, impacted by a significant decrease in sales from prior year releases. Despite revenue growth in the quarter, the company continued to incur net losses, with a net loss of $12.5 million for the three months and $123.3 million for the six months ended September 30, 2012. Cash and cash equivalents decreased by approximately $91.9 million during the first six months of the fiscal year, primarily due to operating activities. The company maintained compliance with its credit agreement covenants and has sufficient liquidity for the next 12 months.
Financial Highlights
47 data points| Revenue | $273.08M |
| Cost of Revenue | $158.49M |
| Gross Profit | $114.60M |
| Operating Expenses | $118.53M |
| Operating Income | -$3.93M |
| Net Income | -$12.49M |
| EPS (Basic) | $-0.15 |
| EPS (Diluted) | $-0.15 |
| Shares Outstanding (Basic) | 85.40M |
| Shares Outstanding (Diluted) | 85.40M |
Key Highlights
- 1Net revenue for the three months ended September 30, 2012 increased significantly to $273.1 million, up from $107.0 million in the prior year period, largely due to new game releases like Borderlands 2.
- 2For the six months ended September 30, 2012, net revenue grew by 13.1% to $499.2 million, compared to $441.4 million in the same period last year, driven by new releases but partially offset by a decline in sales from previous year's titles.
- 3The company reported a net loss of $12.5 million ($0.15 per share) for the three months ended September 30, 2012, an improvement from a net loss of $47.4 million ($0.57 per share) in the prior year quarter.
- 4The net loss for the six months ended September 30, 2012 widened to $123.3 million ($1.45 per share), from a net loss of $56.1 million ($0.68 per share) in the prior year period.
- 5Cash and cash equivalents decreased to $328.3 million as of September 30, 2012, from $420.3 million as of March 31, 2012, reflecting net cash used in operating activities.
- 6Operating expenses increased significantly, particularly selling and marketing, driven by new product launch expenses.
- 7The company remains compliant with its Credit Agreement covenants and believes it has sufficient liquidity to meet its obligations for at least the next 12 months.