John
This thread is not very active...
I'll leave a couple of posts incase anyone
is looking to for info and to see how much TTWO
has improved.... It's getting better & better.
Banchee
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Wednesday May 26, 8:19 am Eastern Time
Company Press Release
Take-Two Interactive Software, Inc. Reports Record
Second Quarter 1999 Net Sales and Net Income
NEW YORK--(BUSINESS WIRE)--May 26, 1999--Take-Two Interactive Software,
Inc. (NASDAQ:TTWO - news) today announced financial results for its fiscal second
quarter ended April 30, 1999.
Net sales for the quarter were $52,165,332, a $12,216,962, or 31%, increase from net sales of $39,948,370 for the quarter
ended April 30, 1998. Net income for the period was $1,561,172 compared to net income of $496,405 for the same period a
year ago, a 215% increase. Diluted earnings per share was $0.08 for the three months ended April 30, 1999 as compared with
$0.03 for the same period a year ago. Supplemental diluted earnings per share attributable to Common Stockholders after
giving effect to S corporation distributions for the second quarter was $0.08 as compared with $0.02 for the same period a
year ago.
For the six months ended April 30, 1999 net sales were $120,445,985, a $29,092,254, or 32%, increase from net sales of
$91,353,731 for the six months ended April 30, 1998. Net income for the six months ended April 30, 1999 was $4,456,008,
a 92% increase over net income for the same period a year ago. Diluted earnings per share for the six months ended April 30,
1999 was $0.22 as compared to $0.15 for the six months ended April 30, 1998. Supplemental diluted earnings per share
attributable to Common Stockholders after giving effect to S corporation distributions for the second quarter was $0.22 as
compared with $0.12 for the same period a year ago. For the twelve months ended April 30, 1999 net sales were
$223,143,820, net income was $9,319,516 and diluted earnings per share was $0.49.
The Company's working capital position as of April 30, 1999 was $27,590,386 as compared with $25,980,469 on January
31, 1999. Additionally, the Company's working capital position was further increased post April 30, 1999 as the result of its
May 11, 1999 completion of a follow-on public offering which yielded more than $20,000,000.
Gross margins continued to improve during the second quarter reaching 31%, as compared with 22% for the first quarter, and
24% for the year ended October 31, 1998. The Company attributes this trend to growth in its publishing business. During the
second quarter publishing sales represented 60% of total net sales, as compared with 35% for the first quarter and 47% for the
1998 fiscal year.
During the quarter, the Company experienced strong sales growth in all areas of its business. In particular, during the second
quarter of 1999, the Company's international publishing subsidiary saw sales expand more than 50% over the same period a
year ago. Internationally, the Company benefited both from strong sales of its Grand Theft Auto franchise and its recently
acquired Joytech brand accessories line. Domestically, the Company's value added distribution and budget video game
publishing subsidiary continued to excel, and the Company's publishing arm was buoyed by sales of Grand Theft Auto
Director's Cut and PC releases from TalonSoft and Gathering of Developers.
Ryan Brant, President and Chief Executive Officer, stated, ''We are very pleased with Take-Two's success in the second
quarter of 1999. Continued growth in revenues and gross margins during the quarter resulted in a record earnings performance
for our Company. Looking forward to the second half of 1999 we see continued strength in both our domestic and international
publishing businesses, as well as our global value added distribution business, and feel the diverse nature of our company makes
us well positioned to capitalize on continued growth within the interactive entertainment software industry.''
Take-Two Interactive Software, Inc. is an integrated global developer, marketer, distributor, and publisher of interactive
entertainment software games and accessories for the PC, Sony PlayStation, Nintendo 64, Nintendo Game Boy Color and the
Sega Dreamcast. Take-Two is headquartered in New York City, with publishing, marketing, and sales offices in the United
Kingdom, Germany, France, and Australia and a licensing office in Japan. The company owns and operates the following
development and/or publishing studios: Rockstar Games, Mission Studios, GearHead Entertainment, Tarantula Studios, and
TalonSoft. The company maintains a broad reaching partnership with, and 19.9% equity interest in, Gathering of Developers,
the Dallas based corporate union of six of the world's premier game development companies. The company's Jack of All
Games subsidiary is a global value added distributor of entertainment software with distribution offices in Cincinnati, New
York, London, Paris, Munich, Oslo, Stockholm, Copenhagen and Sydney. The Company owns and operates
DVDWave.com, a Berkeley, California based Internet retailer of DVD movies. All trademarks and copyrights contained herein
are the property of their respective holders.
Safe Harbor Statement under the Private Securities Reform Act of 1995: The statements contained herein which are not
historical facts are forward-looking statements that involve risks and uncertainties including, but not limited to, risks associated
with the Company's future growth and operating results, the ability of the Company to successfully integrate the business and
personnel of newly acquired entities into its operations, credit risks, inventory obsolescence, technological change, competitive
factors, and unfavorable general economic conditions. Actual results may vary significantly from such forward-looking
statements. Take-Two undertakes no obligation to update forward-looking statements contained within this press release.
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the three months ended April 30, 1998 and 1999
and the six months ended April 30, 1998 and 1999 (unaudited)
Three months ended Six months ended
April 30, April 30,
1999 1998 1999 1998
(Unaudited) (Unaudited)
Net sales $ 52,165,332 $ 39,948,370 $120,445,985 $ 91,353,731
Cost of sales 36,085,017 29,847,441 89,622,857 70,645,010
Gross profit 16,080,315 10,100,929 30,823,128 20,708,721
Operating expenses:
Research and
development costs 632,005 518,408 1,224,149 1,005,371
Selling and
marketing 5,328,266 3,812,260 9,489,469 8,043,437
General and
administrative 6,206,839 3,536,619 10,618,337 5,671,865
Depreciation and
amortization 579,050 403,257 1,032,465 779,799
Total operating
expenses 12,746,160 8,270,544 22,364,420 15,500,472
Income from
operations 3,334,155 1,830,385 8,458,708 5,208,249
Interest expense 782,953 972,818 1,599,470 2,520,853
Income before
income taxes 2,551,202 857,567 6,859,238 2,687,396
Provision for
income taxes 990,030 135,767 2,403,230 144,415
Net income before
extraordinary
item 1,561,172 721,800 4,456,008 2,542,981
Extraordinary loss
on early
extinguishment
of debt -- 225,395 -- 225,395
Net income 1,561,172 496,405 4,456,008 2,317,586
Net income
attributable
to common
stockholders'
- Diluted $ 1,561,172 $ 496,405 $ 4,456,008 $ 2,317,586
Per share data:
Diluted:
Weighted average
common shares
outstanding 20,751,120 16,440,902 20,131,660 15,656,706
Net income
per share $ 0.08 $ 0.03 $ 0.22 $ 0.15
Supplemental net
income attributable
to common stockholders
after giving effect to
S corporation
distributions $ 0.08 $ 0.02 $ 0.22 $ 0.12
OTHER INFORMATION Three months ended Six months ended
April 30, April 30,
1999 1998 1999 1998
Total Revenue Mix
Distribution 40% 50% 54% 60%
Publishing 60% 50% 46% 40%
Geographic Revenue Mix
Domestic 64% 71% 72% 86%
International 36% 29% 28% 14%
Publishing Platform Revenue Mix
Video Game Consoles 49% 77% 45% 69%
Nintendo GameBoy Color 3% 0% 11% 0%
PC 36% 23% 37% 31%
Accessories 12% 0% 7% 0%
Contact:
Take-Two Interactive Software, Inc., New York
Larry Muller (financial)/Tricia Gray (media)
212/941-2988
fax: 212/941-2997
tricia@take2games.com
or
Wolfe Axelrod Associates, New York
Donald C. Weinberger
Stephen D. Axelrod, CFA
Allen Salzberg (media)
212/370-4500
fax: 212/370-4505
don@wolfeaxelrod.com |
