Take-Two Q1 Results Top Estimates; Boosts FY14 Outlook

(RTTNews) - Take-Two Interactive Software, Inc. (TTWO) reported a net loss for the first quarter of $61.9 million, or $0.71 per share, compared to $110.8 million, or $1.30 per share, for the year-ago quarter.

Adjusted net loss for the first quarter narrowed to $47.1 million, or $0.54 per share from $98.8 million, or $1.16 per share, in the prior year quarter.

Both reported and adjusted net loss for fiscal first quarter 2014 include an impairment of capitalized software development cost related to a 2K title in development totaling $29.6 million, or $0.34 per share, for reported, and $29.0 million, or $0.33 per share, for adjusted.

Net revenue for the first quarter fell to $142.7 million from $226.1 million in the prior year quarter, which had benefited from the releases of Max Payne 3 and Spec Ops: The Line. Adjusted net revenue declined to $144.3 million from $226.1 million a year earlier.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.57 per share on revenue of $124.68 million for the first quarter. Looking forward the second quarter, the company forecasts adjusted revenue of of $750 million to $800 million and adjusted earnings of $1.20 to $1.35 per share. Analysts currently expect the company to earn $1.57 per share on revenue of $814.60 million for the second quarter.

For the fiscal year 2014, the company now forecasts adjusted revenue of $1.775 billion to $1.875 billion and adjusted earnings of $2.25 to $2.50 per share. Previously, the company forecast adjusted revenue of $1.75 billion to $1.85 billion and adjusted earnings of $2.05 to $2.30 per share.

Analysts currently expect the company to earn $2.35 per share on revenue of $1.85 billion for the fiscal year 2014.