NEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the third quarter of its fiscal year 2012, ended December 31, 2011, that were in line with its most recent financial outlook. In addition, the Company updated its financial outlook for the fourth quarter and fiscal year 2012, ending March 31, 2012.

“We delivered results that were solidly within our expectations, driven by strong holiday demand for NBA 2K12, our popular catalog titles and digital offerings.”
For the third quarter of fiscal 2012, net revenue was $236.3 million, as compared to $334.3 million for the third quarter of fiscal 2011, which had benefited from the post-launch performance of Red Dead Redemption and the releases of Red Dead Redemption: Undead Nightmare and Grand Theft Auto IV: Complete. GAAP income from continuing operations was $14.2 million, or $0.16 per diluted share, for the third quarter of fiscal 2012, as compared to GAAP income from continuing operations of $40.8 million, or $0.45 per diluted share, for the year-ago period. Non-GAAP net income was $29.0 million, or $0.27 per diluted share, as compared to Non-GAAP net income of $49.5 million, or $0.52 per diluted share, for the year-ago period. The Company’s issuance of 1.75% convertible senior notes due 2016 in November 2011 reduced GAAP net income per diluted share by $0.02 and Non-GAAP net income per diluted share by $0.04.

The strongest contributors to net revenue in the third quarter were 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. 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.

For the nine-month period ended December 31, 2011, net revenue was $677.7 million, as compared to $954.6 million for the year-ago period. GAAP loss from continuing operations was $41.7 million, or $0.50 per diluted share, as compared to GAAP income from continuing operations of $76.2 million, or $0.88 per diluted share, for the year-ago period. Non-GAAP net loss was $8.4 million, or $0.10 per diluted share, as compared to Non-GAAP net income of $108.8 million, or $1.15 per diluted share, for the year-ago period.

Management Comments

“During the fiscal third quarter, we continued to execute strategically, creatively and operationally,” said Strauss Zelnick, Chairman and CEO of Take-Two. “We delivered results that were solidly within our expectations, driven by strong holiday demand for NBA 2K12, our popular catalog titles and digital offerings.

“Take-Two’s future is extraordinarily promising. We have a proven strategy focused on building compelling interactive entertainment franchises, the strongest development pipeline in the Company’s history, and ample resources to pursue our many growth opportunities. Fiscal 2013 is expected to be one of our best years ever, with substantial revenue growth and Non-GAAP net income in excess of $2.00 per diluted share. We are well positioned to continue to deliver growth and profitability over the long-term.”

Business and Product Highlights

Since October 1, 2011:

Take-Two raised $250 million through a private offering of 1.75% convertible senior notes due 2016. The net proceeds from the offering will be used for general corporate purposes, which may include acquisitions and other strategic investments and the refinancing of indebtedness. In addition, the Company amended its senior secured revolving credit facility on significantly improved terms.
Rockstar Games:

Released Red Dead Redemption: Game of the Year Edition, featuring the original title and all subsequently released add-on content. The Red Dead franchise has sold-in over 13 million units worldwide.
Announced that Grand Theft Auto V, the next installment in the interactive entertainment industry’s most iconic and critically acclaimed franchise, is in full development.
Released L.A. Noire: The Complete Edition, featuring the original title and all subsequently released downloadable content, for the Xbox 360, PS3 and PC. L.A. Noire has sold-in nearly 5 million units worldwide since its launch.
Released a special edition of Grand Theft Auto III for mobile phones and tablets running iOS and Android in celebration of the game’s 10th anniversary. The title is Take-Two’s highest selling mobile offering to date.
Announced that Max Payne 3 is planned for launch for Xbox 360 and PS3 on May 15, 2012 in North America and May 18, 2012 internationally; and for the PC on May 29, 2012 in North America and June 1, 2012 internationally.
2K:

2K Sports released NBA 2K12 to critical acclaim and the highest review scores in the history of the franchise (90 – Metacritic). The game was supported with the Legends Showcase downloadable content during the 2011 holiday season. The label also released NBA 2K12 for the iPhone, iPod touch and iPad. NBA 2K12 has sold-in nearly 4 million units to date.
2K Sports announced that Cy Young Award winning pitcher, Justin Verlander of the Detroit Tigers, will be the cover athlete for Major League Baseball 2K12 when it launches on March 6, 2012.
2K Games announced that XCOM: Enemy Unknown is in development at Firaxis Games, the creative team behind the iconic Sid Meier’s Civilization franchise. This title, which will feature both deep strategy and intense action, is planned for release in fall 2012.