Take-Two Delays Annual Report; Restates Earnings

Officials from Take-Two Interactive have said that the company will delay filing its annual report as it restates past results to reflect changes in revenue recognition policies, in light of concerns raised by securities regulators. The company has been under investigation by the U.S. Securities and Exchange Commission for almost two years. The adjustments, relating to new methods for recording reserves for price concessions, are expected to lower fiscal 2003 earnings per share by up to 4 cents but could boost fiscal 2002 earnings per share by up to 3 cents. As a result of these announcements shares in the company fell to $27.04, down from a close of $29. The company said it now expects earnings per share of 70 cents for the quarter, ended January 31, on revenue of $385 million. This compares with a prior forecast for earnings per share of $1.10 on revenue of $412 million. Source: Yahoo! News