NEW YORK ( TheStreet) -- Video game maker Take Two Interactive ( TTWO) comfortably beat Wall Street's estimates in its first-quarter results and gave bullish guidance, driving its share price up more than 5% in extended trading. The Manhattan-based firm reported revenue of $163.2 million after market close, up from $149.4 million in the prior year's quarter and well above analysts' estimate of $125.27 million.
In a statement, Take Two said that first-quarter revenue was boosted by sales of its NBA 2K10 game, as well as the launch of its new Borderlands offering. The company's best-known product, however, is Grand Theft Auto, which is sold by subsidiary Rockstar Games. Grand Theft Auto IV has now sold over 15 million units globally, said Take Two. Excluding items, Take Two lost 31 cents a share on a net loss of $24.4 million, although this narrowed significantly from the same period last year, when the company lost 56 cents a share on a net loss of $42.8 million. Analysts surveyed by Thomson Reuters had forecast a loss of 51 cents a share. Take Two also gave strong guidance, predicting second quarter revenue between $250 million and $300 million, compared to analysts' forecast of $267.42 million. For fiscal 2010, the firm also predicted a revenue range of $725 million to $925 million. Analysts surveyed by Thomson Reuters had predicted sales of $843.82 million. Investors responded positively to the numbers. Take Two's shares rose 51 cents, or 5.65%, to $9.54 after market close. The video game specialist, which competes with Activision ( ATVI), Electronic Arts ( ERTS) and Microsoft ( M SFT), has been on a mission to streamline itself and announced the sale of its Jack of All Games distribution business to SYNNEX last week. Take Two is also undergoing a major restructuring effort which involves a 15% reduction in headcount and other cost savings. This is expected to result in $8 million in savings in fiscal 2010 and $15 million on an annualized basis. "Take-Two has been strengthened through our cost savings initiatives and the sale of Jack of All Games," said Ben Feder, the company's CEO, in a statement. "We will continue to evaluate our cost structure for additional savings." -- Reported by James Rogers in New York Follow James Rogers on Twitter and become a fan of TheStreet.com on Facebook.