Take-Two Postpones SEC Filing Date

Game publisher and developer and Rockstar/2K Games parent Take-Two Interactive Software, has announced that it has officially applied to extend its SEC financial filing date for the fiscal year ended October 31, 2005, giving the company longer to release its official profit/loss for the year. In its recent financial results call, the company did not promptly release full results for the year, hinting that timely filing might be an issue. Though Take-Two partially blamed the Sarbanes-Oxley Act for increasing difficulty of filing results, it seems that the lack of timely filing was largely due to an inventory management system change related to Take-Two's Jack Of All Games distribution arm that "didn't go as well as planned". However, the SEC filing also comments that Take-Two "did not maintain effective controls over the accuracy of the amortization of its capitalized software development costs", another reason for the delay. In that previous financial call, Take-Two announced disappointing preliminary unaudited financial results of $1.2 billion in net sales and diluted net income per share of $0.53 for its fiscal year ended October 31, 2005 and $308 million in net sales and $0.27 in diluted net income per share for its fiscal 2005 fourth quarter. The formal version of these results are due during the next 14 days.