Take-Two Outlook Dims

For the third quarter, Take-Two said revenue would range from $195 million to $215 million, with EPS loss, excluding items, in the range of 60 cents to 65 cents. Analysts were expecting revenue of $249.1 million and a loss of 17 cents a share.

For the fourth quarter, Take-Two guided net revenue in the range of $520 million to $550 million, with EPS in the range of $1.35 to $1.40 a share.

Analysts forecast revenue of $489.3 million and earnings of $1 a share.

Take-Two reaffirmed its guidance for fiscal 2007 of revenue in the range of $1.2 billion to $1.25 billion and break-even shares vs. consensus of a loss of 4 cents a share on revenue of $1.22 billion.

The company also announced a restructuring plan for its international operations. It plans to consolidate and align the marketing, sales and operational functions according to business category rather than geography.

On the West Coast, Take-Two plans to consolidate the management, marketing and business development operations of the 2K and 2K Sports divisions.

Take-Two expects to reduce fixed overhead by approximately $25 million by the end of fiscal 2008. It also sees approximately $15 million of charges related to the restructuring through fiscal 2008, with roughly half of the charges expected in fiscal 2007.