14 DAY TRIAL // Rumors of Take-Two selling out weren't far from the truth as the video game publisher today announced financial results for its second quarter and six months ended April 30, 2007, which were in line with the company's previously issued guidance, says an official report.
Net revenue for the second quarter was $205.4 million, compared to $265.1 million for the same period of fiscal 2006. Apparently, the decrease in net revenue primarily reflected the significant sales contributed by The Elder Scrolls IV: Oblivion in the year-ago period, partially offset in the fiscal 2007 second quarter by strong sales of Grand Theft Auto titles and Major League Baseball 2K7 in comparison to the same franchises in the prior period. Both Grand Theft Auto: Vice City Stories and Major League Baseball 2K7 sold well: over 1 million each, during the quarter.
As for the net loss that Take-Two has registered for the recent quarter, we're talking $51.2 million or $0.71 per share, compared to a net loss of $50.4 million or $0.71 per share in the second quarter of fiscal 2006. The quarter's operating results however, benefited from a decrease in selling and marketing expense, along with a realization of cost benefits from the prior year development studio closings, as they didn't have to pay a dime for the closure.
The company lost a lot of money with pre-tax expenses as well, totaling approximately $32.3 million related to the Company's recent management and board changes, legal expenses and other professional fees (investigation of stock option grants, responses to the New York County District Attorney's subpoenas and other legal matters). To sum it up, Take-Two's cash position as of April 30 2007 was $108.5 million.
Not much for a publisher of such high status, so you can see why there were rumors of company closure. I remember another rumor though - Micrsoft buying them. That rumor must be dead and buried by now. So what happens to all the games? Is there another publisher to handle GTA V or the following installment of MLB. GTA V may or may not appear as a headline soon after GTA IV is released, but MLB...