Take-Two Profits Rise; Civil Charges Raised

Representatives from Take-Two Interactive have released details of the company’s fourth quarter results, ended October 31. During this time a profit of $26.6 million, or 59 cents per share, was reported, which compares to a figure of $22.3 million, or 54 cents per share, at the same time last year. Revenues also rose to $278.5 million, from $218 million in 2002. Although the fourth quarter results are slightly higher than expected the company has lowered its earnings per share forecast for the next quarter from $1.21 to $1.10. Sales forecasts though are still expected to be $412 million. For the fiscal year ended October 2004 earnings outlooks were also lowered from $2.68 to $2.60 – with sales predictions remaining at $218 million and revenues guidance at $1.18 billion. Despite this largely positive new the company also revealed that it faces civil charges from securities regulators and faces new questions about its accounting methods. The company has apparently been informed by the U.S. Securities and Exchange Commission, that it intends to level civil charges against the company, its chairman, an employee and two former officers for violations of securities laws. The company has been under formal SEC investigation since February 2002, over the way it booked sales and treated returns from smaller retailers.