Take-Two Interactive Post Wider Q4 Loss, Offers Weak Outlook

December 17, 2008 10:21 p.m. EST

New York, NY (AHN) - Take-Two Interactive Software Inc. announced Wednesday that it's fiscal fourth quarter loss more than doubled from a year ago. The company also offered fiscal first quarter guidance well below analyst estimates.

The videogame maker posted a net loss of $15 million or 20 cents a share, compared to a $7.1 million or 10 cents a share loss in the same period a year earlier. Excluding one-time charges for stock-based compensation and legal fees, Take-Two said it earned $1.6 million or 2 cents a share.

The result was short of analyst estimates for 5 cents a share, according to Thomson Reuters.

Revenue totaled $323.4 million, up 10 percent from $292.6 million last year.

For fiscal year 2008, Take-Two swung to a profit of $97.1 million or $1.28 a share after posting a net loss in fiscal 2007. Revenue totaled $1.53 billion for the year.

"Take-Two's record results for the 2008 fiscal year reflect the fundamental strength of our business model," said Chairman Strauss Zelnick in a press release.

Looking forward, the company expects a fiscal first quarter loss of 70 to 85 cents a share on sales ranging from $175 million to $225 million. The guidance is well below analyst estimates for profits of 22 cents a share on revenue of $317.6 million.

Take-Two also announced it has entered into a new long-term agreement with Rockstar Games' senior creative talent through Jan. 31, 2012.

Shares of Take-Two Interactive fell 18 percent in afterhours trading to $9.89.