Take-Two Reveals Lackluster Q3 As Debt Payoff Consumes Profits

Net sales for the quarter were up 18% over last year to $84.5 million, aided by the popularity of Remedy's Max Payne title. Net income was $409,000 (1 cent a share), after taking into account a debt payoff of $1.5 million and taking in $651,000 gain on sale of its Jack Of All Games subsidiary. This compares with net income of $3.4 million ($0.12 per share) for the same period a year ago. Analysts had expected net revenues in the 4-5 cents per share range. The Company said it is will continue to focus on strengthening its balance sheet and improving its capital efficiency, through the reduction of outstanding receivables and indebtedness. Looking to the remainder of the year, Take-Two expects to release Smuggler's Run 2, State of Emergency and products based on the popular Midnight Club, Austin Powers, 4x4 Evo and Duke Nukem' brands through its Rockstar subsidiary. The Company's GodGames PC publishing label looks forward to the release of Myth 3 and Stronghold.