XBOX-HQ.COM - Take-Two Financials Down

Recent quarterly financial results have Take-Two Interactive posting greater than expected losses and lowering sales and earnings forecasts moving forward. The company blames the dour numbers on slower-than-expected game sales as well as yet-unannounced release date changes.

For the second quarter, ending April 30, Take-Two reports net sales of $153.4 million, down 79% from last year's second-quarter sales of $193 million. The company posted a net loss of $14.6 million for this quarter, whereas for the second quarter of 2003, the company posted a profit of $14.6 million.

The lower results affect the company's performance over the first half of the fiscal year, with net income at $17.2 million as compared with $66.2 million reported for the first six months of fiscal 2003.

Also reflecting these losses, Take-Two has significantly dropped its guidance for the remainder of 2004. Projected third quarter sales are now at $130 million to $140 million, rather than the previously expected $180 million and $200 million.

The news isn't all gloomy, however. As almost any gamer knows, Take-Two has a mega-hit on the horizon. Grand Theft Auto: San Andreas is set to hit this October, and its certain strong sales have made that quarter's forecasts rosier, with net sales predicted to be $180 million to $200 million.

Also hopeful is Take-Two's publishing agreement with SEGA, announced today, which will have the company exclusively distributing the ESPN line of sports titles developed by SEGA's Visual Concepts studio.

The company also announced today that Richard W. Roedel, who has been serving as the company's Company's Executive Chairman and interim CEO, has now been appointed as permanent CEO of the company.

"Take-Two has an impressive portfolio of proven proprietary brands, a solid holiday lineup and an industry leading distribution business through Jack of All Games," commented Roedel. "With this foundation, along with our strong financial position, I believe we will overcome our recent challenges and regain our solid track record of delivering compelling products and meeting financial expectations."

Source: IGN.com