01—Abstract
Summary
Summary of the 10-Q/A filed May 23, 2017. Cited figures are marked; the original filing is the authoritative source.
Take-Two Interactive Software, Inc. (TTWO) has filed an amended Quarterly Report on Form 10-Q/A for the fiscal quarter ended December 31, 2016.
This filing is primarily to include a revised redacted version of Exhibit 10.2, an amendment to the Xbox One Publisher License Agreement with Microsoft Corporation, in response to SEC comments. The amendment also includes updated CEO and CFO certifications as required by Sarbanes-Oxley. This filing does not present new financial performance data for the quarter but focuses on the disclosure of contractual information.
Investors should note that the core financial results and operational details for the December 31, 2016 quarter would have been presented in the original 10-Q filed on February 8, 2017. This amendment ensures compliance with disclosure requirements regarding a significant licensing agreement.
02—Key points
Key Highlights
- This is an amendment (Form 10-Q/A) to a previously filed Quarterly Report for the period ending December 31, 2016.
- The primary purpose of the amendment is to provide a revised, redacted version of Exhibit 10.2, an amendment to the Xbox One Publisher License Agreement with Microsoft Corporation.
- The amendment was made in response to comments received from the Securities and Exchange Commission (SEC) regarding a confidential treatment request for the aforementioned exhibit.
- Updated certifications from the Chief Executive Officer and Chief Financial Officer are included as required by Section 302 of the Sarbanes-Oxley Act.
- The filing confirms that Take-Two Interactive Software, Inc. is not a shell company.
- As of May 16, 2017, there were 103,836,895 shares of Common Stock outstanding, net of treasury stock.
- This amendment does not introduce new financial performance figures for the quarter but focuses on regulatory compliance and contractual disclosure.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2017, Take Two Interactive Software Inc lost $0.06.
- Revenue$476.5M100.0%
- Cost of revenue−$311.1M65.3%
- Gross profit$165.4M34.7%
- Operating costs−$193.8M40.7%
- Operating income−$28.4M6.0%
- Interest, other & tax−$1.4M0.3%
- Net income−$29.8M6.3%
04—Financials
Financial Highlights
Figures from 10-Q/AQ3 FY2017filed May 23, 2017Financial Statements
Q3 FY2017 against Q3 FY2016
| Line item | Q3 FY2017Q3 FY2016 | Change |
|---|---|---|
| Revenue | $476.47M$414.22M | +15.0% |
| Cost of Revenue | $311.07M$257.86M | +20.6% |
| Gross Profit | $165.40M$156.36M | +5.8% |
| Operating Expenses | $193.81M$215.56M | −10.1% |
| Operating Income | -$28.41M-$59.20M | +52.0% |
| Net Income | -$29.84M-$42.41M | +29.6% |
| EPS (Basic) | $-0.33$-0.51 | +35.3% |
| EPS (Diluted) | $-0.33$-0.51 | +35.3% |
| Shares Outstanding (Basic) | 90.43M83.43M | +8.4% |
| Shares Outstanding (Diluted) | 90.43M83.43M | +8.4% |
05—Questions
Frequently Asked Questions
What is the main reason for this amended filing?
The primary reason for this amended filing is to provide a revised, redacted version of Exhibit 10.2, which is an amendment to the Xbox One Publisher License Agreement with Microsoft Corporation. This was done in response to comments from the SEC concerning a confidential treatment request for that exhibit.
Does this filing contain updated financial results for the quarter ending December 31, 2016?
No, this filing is an amendment to a previously filed 10-Q. It does not introduce new financial performance data or results for the quarter. The financial information for the quarter ending December 31, 2016, was presented in the original 10-Q filing on February 8, 2017.
What is Exhibit 10.2?
Exhibit 10.2 is an amendment, specifically Amendment No. 4, to the Xbox One Publisher License Agreement between Microsoft Corporation and Take-Two Interactive Software, Inc., dated December 15, 2016.
Are there any significant new contractual agreements disclosed in this filing?
This amended filing primarily revises the disclosure of an existing licensing agreement (Exhibit 10.2). Other exhibits listed, such as a lease agreement and share sale agreements, were detailed in the original 10-Q or incorporated by reference from an 8-K filing, and are not new to this amended filing.
06—Continue