10-Q/APeriod: Q3 FY2017

TAKE TWO INTERACTIVE SOFTWARE INC Quarterly Report (Amendment) for Q3 Ended Dec 31, 2016

Filed May 23, 2017For Securities:TTWO

Summary

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.

Financial Highlights

52 data points
Beta

Revenue

$476.47M

34.7% Gross Margin

Net Income

-$29.84M

-6.3% Net Margin

EPS (Diluted)

$-0.33

Total Assets

$3.09B

Cash & Equivalents

$1.04B

Free Cash Flow

$284.32M

Financial Statements
Beta
Revenue$476.47M
Cost of Revenue$311.07M
Gross Profit$165.40M
Operating Expenses$193.81M
Operating Income-$28.41M
Net Income-$29.84M
EPS (Basic)$-0.33
EPS (Diluted)$-0.33
Shares Outstanding (Basic)90.43M
Shares Outstanding (Diluted)90.43M

Key Highlights

  • 1This is an amendment (Form 10-Q/A) to a previously filed Quarterly Report for the period ending December 31, 2016.
  • 2The 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.
  • 3The amendment was made in response to comments received from the Securities and Exchange Commission (SEC) regarding a confidential treatment request for the aforementioned exhibit.
  • 4Updated certifications from the Chief Executive Officer and Chief Financial Officer are included as required by Section 302 of the Sarbanes-Oxley Act.
  • 5The filing confirms that Take-Two Interactive Software, Inc. is not a shell company.
  • 6As of May 16, 2017, there were 103,836,895 shares of Common Stock outstanding, net of treasury stock.
  • 7This amendment does not introduce new financial performance figures for the quarter but focuses on regulatory compliance and contractual disclosure.

Frequently Asked Questions

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.

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.

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.

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.