Take-Two profits dip: 'Theft' thunder stolen
Co.'s revenue recognition policies still under review
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For the three months ended Jan. 31, Take-Two reported net sales of $375.5 million, down from $411 million in the same period last year, which included Christmas sales of "Grand Theft" for PlayStation 2. Net profits were off by 50% to $31.8 million in the quarter.
Company shares sank 1.04% to $33.47 Thursday as the company also warned that second quarter earnings wouldn't be as robust as initially hoped due to a three month delay in releasing "Grand Theft" in Japan. Japanese licensee Capcom Col wanted extra time to market the title in the hope of maximizing sales.
Take-Two's Rockstar Games publishing label said it expects to introduce "The Warriors," a new title based on the Paramount feature film, during its fiscal third quarter.
Company's Jack of All Games distribution unit nevertheless registered a 39% year-over-year sales increase to around $144 million.
Company CEO Jeffrey Lapin told investors that company remains in discussions with the SEC, over its ongoing investigation into the company's revenue recognition policies, specifically how it accounts for returns.
