Take-Two (TTWO) Slashes Q3, FY09 Guidance Well Below the Street

July 13, 2009 4:11 PM EDT
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) today said it is reducing its FY09 outlook to reflect several factors, most significant of which is the movement of the launch of BioShock 2 from Q409 to fiscal 2010, in order to provide additional development time for the title. Additionally, Take-Two is updating Q3 and Q409 guidance to reflect reduced sales of catalog products and lower than anticipated initial retailer orders of new releases, due to a retail environment that is proving even more challenging than the Company's previous expectations.

Lowers its Q3 loss estimate from $0.55-$0.65 to a loss of $0.65-$0.75, which compares to the Street estimate looking for a loss of $0.54. Sales for the quarter move from $145-$165 million to $120-$130 million, versus the $162.23 million analysts are looking for.

For Q4, Take-Two sees a gain of $0.30-$0.40, versus the consensus of $1.15. Sales for the quarter are expected to be in the range of $350-$400 million, versus the Street estimate of $471.14 million.

Taking a look at FY09, the company's non-GAAP estimate moves from breakeven to a gain of $0.20 to a loss of $0.80-$0.95, which compares to the analyst consensus of a $0.07 gain. Sales move from $1.05-$1.15 billion to $960 million-$1 billion. The Street is currently expecting FY09 sales of $1.12 billion.

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