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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: stockid who wrote (40922)	3/14/2002 4:22:08 PM
From: Sully-	Read Replies (1) \| Respond to of 99280

Take-Two Interactive Software, Inc. Announces Record First Quarter Fiscal 2002 Financial Results Company Raises Guidance For Fiscal 2002; Company's Publishing Market Share Continues To Expand Globally NEW YORK--(BUSINESS WIRE)--March 14, 2002-- Take-Two Interactive Software, Inc. (NASDAQ: TTWO - news) today announced record financial results for its first quarter ended January 31, 2002. Net sales for the quarter were $283 million, a 79% increase over net sales of $158 million (inclusive of $27 million in net sales attributable to the adoption of SAB 101) for the same period a year ago. Net income was $34.8 million, or $0.92 per diluted share (inclusive of $0.02 per diluted share attributable to the early adoption of SFAS 142), as compared to net income of $8.2 million, or $0.25 per diluted share, and income before cumulative effect of change in accounting principle, net of taxes, of $13.6 million, or $0.41 per diluted share, in the first quarter of 2001. During the first quarter of 2002 the Company recorded a $127,000 ($76,000 net of taxes) gain on sale of securities. The inclusion of this gain in net income did not result in an increase in diluted earnings per share. Guidance The Company expects that during the remainder of fiscal 2002 it will continue to benefit from strong industry fundamentals and increased sales of its published products. The Company is increasing its financial guidance for fiscal 2002 to $683 million in net sales and $1.67 of diluted earnings per share, including the effect of the early adoption of SFAS 142 ``Amortization of Goodwill and Other Intangibles,'' which no longer requires amortization of goodwill (approximately $0.09 per share for fiscal 2002). The Company is also increasing its guidance for the second quarter ending April 30, 2002 to $145 million in net sales and $0.25 of diluted earnings per share. Liquidity & Selected Balance Sheet Items The Company operated on a cash flow positive basis for the quarter, generating approximately $76 million in cash flow from operations, compared to $21 million for the first quarter of fiscal 2001. DSO's at January 31, 2002 were 39 days, compared with 69 days at October 31, 2001. Working capital was $128 million at the end of the first quarter as compared with $68 million at the same time a year ago. The Company had $31 million in cash and no borrowings under its lines of credit as of January 31, 2002, as compared to $14 million in cash and outstanding borrowings of approximately $95 million at January 31, 2001. The Company's credit facilities in North America and Europe allow for borrowings scaling up to $70 million based on accounts receivable and inventory levels. The Company recently extended its European line of credit for two years; the line now expires in March 2004. On a going forward basis, the Company expects to operate with substantially reduced borrowings as it continues to focus on improved capital efficiency, and it anticipates significant operating cash flow for fiscal 2002. Karl Winters, Chief Financial Officer, commented, ``Take-Two has worked diligently over the past year to improve its working capital and cash flow positions. The success of these efforts coupled with the ongoing strong performance of our published products, is clearly visible in our current balance sheet and financial condition. Looking ahead, we will continue to focus on enhancing Take-Two's liquidity and strengthening its balance sheet.'' ............................. biz.yahoo.com