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Take-Two Swings to Profit
On Grand Theft Auto Sales
By ANDREW EDWARDS
June 5, 2008 4:29 p.m.

Take-Two Interactive Software Inc. swung to a profit as the videogame maker's revenue soared with the release of Grand Theft Auto IV.

Take-Two posted net income of $98.2 million, or $1.29 a share, for the fiscal second quarter ended April 30. That compares with a year-earlier loss of $51.2 million, or 71 cents a share. Revenue more than doubled to $539.8 million.

The company cited the success of Grand Theft Auto IV, a hotly anticipated videogame released at the end of April that generated $500 million in sales in the first week, an industry record. The company said Thursday that consumers had purchased about 8.5 million games as of May 31.

The company also substantially boosted its third-quarter and fiscal year guidance. It now expects fiscal 2008 per-share earnings of $1.65 to $1.85 on revenue of $1.4 billion to $1.5 billion, up from its previous forecast for fiscal 2008 per-share earnings of $1.35 to $1.55 on revenue of $1.25 billion to $1.4 billion. Wall Street expected $1.52-a-share earnings on revenue of $1.41 billion.

For the fiscal third quarter, the company expects per-share earnings of 45 cents to 55 cents on revenue of $325 million to $375 million.

"Take-Two's performance has exceeded expectations through the first half of fiscal 2008, clearly demonstrating the creative, operational and financial strength of our business," said Chairman Strauss Zelnick in prepared remarks.