TTWO
Interview on Power Lunch today....
Indivusal Investor magazine coming out with Magic 25 list
in which TTWO is on it...
World will be waking up to this co.,,,,
Next few day we should see some LT investors buying..
This will help narrow the shorts....But they will
still be there...
News today,,,posting from this am,,,,
also 3mo chart...
quote.yahoo.com
Thursday December 16, 8:14 am Eastern Time
Company Press Release
Take-Two Interactive Software, Inc. Announces
Record Fiscal Year and Fourth Quarter Net Income
and Net Sales
COMPANY SURPASSES $300 MILLION IN ANNUAL SALES - 84%
OF GROWTH IN NET SALES INTERNALLY GENERATED
NEW YORK--(BUSINESS WIRE)--Dec. 16, 1999-- 58% GROWTH IN NET SALES AND 25% GROWTH IN GROSS
MARGIN PERCENTAGE
FUELS 127% INCREASE IN NET INCOME FROM FISCAL YEAR 1998 TO 1999
COMPANY TO CONTINUE EXPANSION IN 2000 WITH STRATEGIC FOCUS ON THE
INTERNET
Take-Two Interactive Software, Inc. (NASDAQ:TTWO - news) today announced financial results for the quarter and year
ended October 31, 1999.
For the year ended October 31, 1999, net sales were $305,931,858, a $111,880,292, or 58%, increase from net sales of
$194,051,566 for the year ended October 31, 1998. Net income for the year ended October 31, 1999 was $16,332,103, a
127% increase over net income of $7,181,094 a year ago. Diluted earnings per share for the year ended October 31, 1999
was $0.76 as compared to $0.42 for the year ended October 31, 1998.
Net sales for the fourth quarter were $121,923,403, a $57,651,713, or 90%, increase from net sales of $64,271,690 for the
quarter ended October 31, 1998. Net income for the period was $9,168,271 compared to net income of $4,003,424 for the
same period a year ago, a 129% increase. Diluted earnings per share was $0.39 for the three months ended October 31, 1999
as compared to $0.21 for the same period a year ago, an 86% increase.
For the year ended October 31, 1999, the Company achieved $111.9 million in net sales growth, of which 84% was internally
generated rate of growth. The remainder of the Company's growth during the year came as a result of its ongoing effort to
consolidate within the entertainment software business through corporate acquisitions.
Gross margins continued to improve during the fourth quarter reaching 33%, as compared to 27% for the first nine months of
the 1999 fiscal year. Gross margins for the year ended October 31, 1999 were 30% compared with 24% for the year ended
October 31, 1998. The company attributes this trend to growth in its publishing business. During the fiscal 1999 publishing sales
accounted for 52% of total net sales, compared to 47% for the 1998 fiscal year.
The Company attributes its growth in 1999 to the following: international publishing grew 115% from $40.8 million to $87.6
million; domestic publishing grew 44% from $50.4 million to $72.7 million; and worldwide distribution sales grew 42% to
$145.6 million. Of significance within the Company's publishing business, global PC publishing grew from $26.0 million to $66.9
million, an increase of 157%.
During the fourth quarter the Company continued to achieve record sales levels in all areas of its business. The Company's
Rockstar Games division launched GTA 2 for the Sony PlayStation and PC, and Earthworm Jim for the Nintendo 64, as well
as several successful GameBoy titles in Europe. The Company launched several successful PC titles, including Nocturne, Tom
Clancy's Rogue Spear (Europe only), and four new titles from its TalonSoft label. The Company's Jack of All Games value
added distribution and budget publishing subsidiary and its Joytech gaming peripheral subsidiary both had record fourth
quarters.
Ryan Brant, Chief Executive Officer, said, ''1999 was a breakthrough year for Take-Two. During the year, the Company
achieved exceptional internal growth , while successfully integrating several significant acquisitions it completed in 1998.
Currently, the Company is operating its integrated yet diversified business model within the interactive entertainment industry on
all cylinders.''
Mr. Brant continued, ''During 1999 the Company established a strong worldwide publishing presence for both its PC and
video game lines. Additionally, Take-Two's Jack of All Games value-added distribution and budget publishing subsidiary
expanded its global reach, and continued to establish itself as the market leader in the distribution of third-party entertainment
software products.''
''Looking to the future,'' Mr. Brant added, ''Take-Two's Rockstar Games division has invested heavily to ensure the Company
has a significant portfolio of products, including Grand Theft Auto, Austin Powers, and Duke Nukem', available for the Sony
PlayStation 2, when it is launched in North America and Europe next Fall. The coming quarters will also see the Company
strategically focus its expansion efforts on the Internet, specifically enhancing the 'Internet business-to- business' capabilities of
its Jack of All Games subsidiary, and Internet brand identity of Rockstar Games, TalonSoft and the multiplayer capabilities of
their respective gaming properties.''
Headquartered in New York City, 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. The Company publishes and develops products through various wholly
owned subsidiaries including: Rockstar Games, TalonSoft, Joytech and DMA Design. The Company maintains a publishing and
distribution partnership with, and 19.9% equity interest in, both Gathering of Developers and Bungie Software. The Company's
Jack of All Games value added distribution arm maintains sales and marketing offices in Cincinnati, New York, Toronto,
London, Paris, Munich, Oslo, Stockholm, Copenhagen, Milan and Sydney. The Company owns and operates
DVDWave.com, an 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, credit risks, inventory obsolescence, technological change, competitive
factors, product returns, failure of retailers to sell-through the Company's products, and unfavorable general economic
conditions. The Company's 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.
[Financial Table Follows]
-0-
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the three months ended October 31, 1998 (unaudited)
and 1999 (unaudited)
and the years ended October 31, 1998 and 1999
Three months ended October 31, Years ended October 31,
------------------------------- ------------------------
1999 1998 1999 1998
---------------- -------------- --------------- -------
(Unaudited)
Net sales $121,923,403 $64,271,690 $305,931,858 $194,051,566
Cost of sales 81,567,866 48,739,879 215,121,824 147,555,172
----------- ----------- ----------- -----------
Gross
profit 40,355,537 15,531,811 90,810,034 46,496,394
Operating expenses:
Research and
development
costs 3,051,714 150,539 5,262,708 1,702,339
Selling and
marketing 13,693,013 6,202,962 30,108,356 18,686,086
General and
administrative 7,752,094 4,480,423 25,111,531 13,583,131
Depreciation and
amortization 1,078,520 616,784 2,822,087 1,835,057
Loss on disposal
of fixed
assets 66,617 - 124,121 -
--------- --------- ---------- ----------
Total operating
expenses 25,641,958 11,450,708 63,428,803 35,806,613
Income from
operations 14,713,579 4,081,103 27,381,231 10,689,781
Interest expense 856,531 579,479 2,909,826 3,680,075
---------- ---------- ---------- ----------
Income before
equity in loss
of affiliate
and income
taxes 13,857,048 3,501,624 24,471,405 7,009,706
Equity in loss
of affiliate 156,305 - 45,332 -
---------- --------- ---------- ---------
Income before
income taxes 13,700,743 3,501,624 24,426,073 7,009,706
Provision (benefit)
for
income taxes 4,532,472 (501,800) 8,093,970 (334,136)
---------- ---------- ---------- ---------
Net income
before
extraordinary
item 9,168,271 4,003,424 16,332,103 7,343,842
Extraordinary net
loss on early
extinguishment
of debt - - - 162,748
--------- ---------- ---------- ---------
Net income $9,168,271 $4,003,424 $16,332,103 $7,181,094
Net income
attributable to
common
stockholders'
- Diluted $9,168,271 $4,003,424 $16,332,103 $7,181,094
========== ========== =========== ==========
Per share data:
Diluted:
Weighted average
common shares
outstanding 23,809,597 18,836,114 21,514,625 17,062,806
========== ========== ========== ==========
Net income
per share $ 0.39 $ 0.21 $ 0.76 $ 0.42
========== ========== ========== ==========
Supplemental net
income attributable
to common
stockholders
after giving
effect to S
corporation
distributions $ 0.39 $ 0.19 $ 0.76 $ 0.37
=========== ============ ============= ========
OTHER INFORMATION
Three months ended October 31, Years ended October 31,
------------------------------------------------------
1999 1998 1999 1998
---------------- -------------- --------------- ------
Total revenue mix
Distribution 49% 51% 48% 53%
Publishing 51% 49% 52% 47%
Geographic revenue mix
Domestic 58% 71% 65% 77%
International 42% 29% 35% 23%
Publishing platform revenue mix
Video Game Consoles 48% 64% 47% 71%
Nintendo Color
Gameboy 3% 0% 6% 0%
PC 45% 36% 42% 29%
Accessories 4% 0% 5% 0%
-0-
Contact:
Larry Muller (financial)
Jeff Castaneda (media)
TAKE-TWO INTERACTIVE SOFTWARE, INC.
212-334-6633; 212-334-6644 fax
OR
Stephen D. Axelrod, CFA
Donald C. Weinberger
Bella Wagner (media)
WOLFE AXELROD ASSOCIATES
212-370-4500; 212-370-4505 fax
E-mail: don@wolfeaxelrod.com |
