2/2/2012 5:21 PM ET
(RTTNews) - Video-game publisher Take-Two Interactive Software, Inc. (TTWO: News ) said Thursday after the markets closed that its third quarter profit fell 66% from last year, as revenue dropped amid fewer new releases.
However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations. At the same time, the company cut its fiscal 2012 outlook, citing postponement of the planned release of Max Payne 3 from fourth quarter to first quarter of its next fiscal year.
The New York-based company reported GAAP net income for the third quarter of $14.1 million or $0.16 per share, compared to $40.9 million or $0.45 per share for the year-ago quarter.
GAAP income from continuing operations for the third quarter was $14.2 million or $0.16 per share, compared to $40.8 million or $0.45 per share in the prior year quarter.
Excluding items, non-GAAP net income for the third quarter was $29.0 million or $0.27 per share, compared to $49.5 million or $0.52 per share in the third quarter of last year.
On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.23 per share for the third quarter. Analysts' estimates typically exclude special items.
Take-Two, famous for its Grand Theft Auto series, said net revenue for the third quarter fell 29% to $236.33 million from $334.26 million in the same quarter last year. Sixteen analysts had a consensus revenue estimate of $249.16 million for the third quarter.
The company said the release of NBA 2K12; catalog sales led by the Grand Theft Auto franchise, Red Dead Redemption, Midnight Club Los Angeles and Borderlands; and continued sales of L.A. Noire; were among the strongest contributors to the third quarter revenue.
Digitally delivered content accounted for 11% of net revenue, driven by offerings for the Grand Theft Auto franchise - particularly the Grand Theft Auto III - 10th Anniversary Edition for iOS and Android, Red Dead Redemption, Borderlands and L.A. Noire, the company noted.
Strauss Zelnick, Chairman and CEO of Take-Two, said, "We delivered results that were solidly within our expectations, driven by strong holiday demand for NBA 2K12, our popular catalog titles and digital offerings."
Looking forward to the fourth quarter, the company forecast net revenue of $112 million to $162 million and non-GAAP loss of $0.65 to $0.50 per share. Analysts currently expect the company to report a loss of $0.11 per share on revenue of $184.97 million for the fourth quarter.
Citing postponement of the planned release date for Max Payne 3 from fourth quarter fiscal 2012 to first quarter fiscal 2013, the company also lowered its fiscal 2012 outlook. Max Payne 3 is now planned for launch for Xbox 360 and PS3 on May 15 in North America and May 18; and for the PC on May 29 in North America and June 1 internationally.
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