Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported better-than-expected financial results for fiscal first quarter 2014, ended June 30, 2013. In addition, the Company increased its financial outlook for fiscal year 2014, ending March 31, 2014, and provided its initial financial outlook for fiscal second quarter 2014, ending September 30, 2013.
For fiscal first quarter 2014, GAAP net revenue was $142.7 million, as compared to $226.1 million for fiscal first quarter 2013, which had benefited from the releases of Max Payne® 3 and Spec Ops®: The Line. Non-GAAP net revenue was $144.3 million, as compared to $226.1 million for the year-ago period. GAAP net loss from continuing operations narrowed to $61.9 million, or $0.71 per diluted share, as compared to $110.8 million, or $1.30 per diluted share, for the year-ago period. Non-GAAP net loss narrowed to $47.1 million, or $0.54 per diluted share, as compared to $98.8 million, or $1.16 per diluted share, for the year-ago period. Both GAAP and Non-GAAP net loss for fiscal first quarter 2014 include an impairment of capitalized software development cost related to a 2K title in development totaling $29.6 million, or $0.34 per share, for GAAP, and $29.0 million, or $0.33 per share, for Non-GAAP. As of June 30, 2013, the Company had cash and cash equivalents of $646.3 million.
The largest contributors to net revenue in fiscal first quarter 2014 were offerings for Borderlands® 2, NBA® 2K13, Grand Theft Auto® IV, and BioShock® Infinite. Catalog sales accounted for 60% of Non-GAAP net revenue led by the Borderlands franchise, the Grand Theft Auto franchise, and Red Dead Redemption®. Revenue from digitally delivered content grew 128% year-over-year and accounted for a record 52% of Non-GAAP net revenue, driven by offerings for Borderlands 2, the Grand Theft Auto franchise, NBA 2K13, and BioShock Infinite.
Management Comments“Our better-than-expected first quarter results demonstrate that the market remains strong for the highest-quality interactive entertainment,” said Strauss Zelnick, Chairman and CEO of Take-Two. “We continue to benefit from robust demand for our recent genre-leading releases, iconic catalog titles and growing portfolio of innovative digitally delivered offerings.
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