Take-Two Outlook Dims

Updated from 5:15 p.m. EDT

The video-game publisher Take-Two(TTWO Quote) beat estimates in its second quarter, but sales fell from a year ago, and the company guided lower for the coming quarter, as it announced a restructuring plan to cut expenses by $25 million at the end of fiscal 2008.

The N.Y.-based company additionally on Monday reaffirmed guidance for fiscal 2007.

Revenue for the second quarter was $205.4 million, a decrease from $265.1 million a year ago, but better than analysts' polled by Thomson Financial forecast of $204.4 million.

Excluding charges related to reorganization and stock-based compensation expenses, Take-Two lost $29.7 million or 41 cents a share, compared with $37 million, or 52 cents a share in the second quarter of 2006. That beat consensus EPS estimates by 16 cents.

Take-Two said the decrease in net revenue reflected the significant sales contributed by one its games, The Elder Scrolls IV: Oblivion released in the year-ago quarter.

Take-Two's Grand Theft Auto: Vice City Stories and Major League Baseball 2K7 sold more than 1 million units each during the quarter.

The company's second-quarter earnings call is the first after a shareholder revolt led to the departure of former CEO Paul Eibler and CFO Karl Winters and installed current CEO Ben Feder and Chairman Strauss Zelnick at the helm.

Shares of Take-Two were up 28 cents, or 1.5%, to $19.22 in recent after-hours trading.