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Game Developer Take-Two Interactive Announces Results

Take-Two Interactive Software, Inc. has announced record net sales and cash flow for its 2001 second quarter ended April 30, 2001. Net sales for the quarter increased 33% to $93.3 million compared with $70.0 million for the same period a year ago. Net income was $3.9 million, or $0.12 per fully diluted share, excluding non-recurring, non-cash impairment charges of $24.9 million ($15.8 million net of taxes), relating to the company's investments in and and certain related Internet assets, compared with $3.4 million, or $0.13 per fully diluted share for the same period a year ago. For the six months ended April 30, 2001, Take-Two recorded net sales of $224.5 million and net income of $11.6 million, or $0.35 per fully diluted share, excluding the non-recurring, non-cash impairment charges, compared to net sales of $192.9 million and net income of $8.1 million, or $0.32 per fully diluted share for the same period a year ago. Net sales for the trailing twelve months ended April 30, 2001 were approximately $418.6 million. Looking forward to the balance of fiscal 2001, the company expects to benefit from PC and PlayStation 2 releases of MAX PAYNE from 3D Realms/ Remedy; DUKE NUKEM FOREVER, MAFIA, STRONGHOLD and MYTH 3, all for the PC; MOTOCROSS MANIA and HIDDEN & DANGEROUS for the PlayStation; and RUNE: VIKING WARLORD for the PlayStation 2. The company will also release SMUGGLER'S RUN 2, as well as the next member of its largest franchise, GRAND THEFT AUTO 3, both for PlayStation 2. The company also expects to release several Nintendo Game Boy Advance titles during fiscal 2001 and have at least one game ready for the launch of Microsoft's Xbox. Theyve also begun development of a product featuring DUKE NUKEM for Nintendo's soon to be released GameCube. Take-Two publishes and develops products through various wholly owned subsidiaries including Rockstar Games, GodGames, TalonSoft, Joytech, DMA Design, PopTop, Global Star and under the Take-Two brand name. Paul Eibeler, the companys president, stated, "From an operating standpoint, this was an excellent quarter for Take-Two. The continued and rapid maturation of our Company coincides with the beginning of what promises to be a period of record expansion for the interactive entertainment software industry. We have begun to see an acceleration in our business, as evidenced by our top line growth, and we anticipate the strongest publishing schedule in our company's history to lead us to record profitability levels this Christmas." As expected, the company has strengthened its balance sheet by eliminating its investment in Also included in the impairment charges was a reduction in the value of Internet assets attributed to the companys Neo Software development studio, which was expecting to deliver certain online products for distribution by Take-Two also wrote down its investment in