Take-Two Director Takes Off

Barbara A. Kaczynski resigns from her position with the games publisher citing several issues with its board.
Author:
Publish date:

Take-Two

(TTWO) - Get Report

on Wednesday announced the resignation of Director Barbara A. Kaczynski and posted final results for its fourth quarter ended in October.

According to a

Securities and Exchagne Commission

filing, Kaczynski resigned Jan. 19 from the company's board of directors and her related positions as chairwoman of its audit committee and member of the software games publisher's corporate governance committee.

A letter on behalf of Kaczynski states among the reasons for her departure that "several matters requiring the board's attention caused" her concern.

Included in those matters are Take Two's "discovery of illicit images depicted in its

Grand Theft Auto

video game, the Federal Trade Commission's investigation of Take-Two following that discovery, and various SEC inquiries directed at Take-Two and its employees."

The letter goes on to say that more recent issues in connection with preparation of the 10-K and its late filing heightened Kaczynski's beliefs of an "increasingly unhealthy relationship between senior management and the board of directors ... characterized by a lack of cooperation and respect."

Take-Two also named music industry veteran Michael J. Malone, to the board, effective Jan. 24; and announced new responsibilities for board members Todd Emmel and Robert Flug.

The

Grand Theft Auto

series has long been controversial for its depictions of street gang violence.

The company ceased production of the latest version of its popular game in July, after public outcry about a software hack that allows gamers to see racy sex scenes.

Without modification, the games have included scenes that imply sex between certain characters. But an Internet-available, third-party program called "hot coffee" enabled players to see their characters engage in sex acts.

Some analysts have charged that the hot coffee modification allowed access to scenes that had been built into the game.

Take-Two spokesman Jim Ankner had acknowledged that the scenes were on the game discs, but said they were examples of "unused and unfinished" content often found on game discs when they ship.

Additionally, Ankner said that gamers were unable to view the scenes without the hot coffee program, the installation of which constituted a violation of the end-user agreement.

On Wednesday the company also posted final results for its fourth quarter ended Oct. 31. Take-Two reported revenue of $308.2 million and net income of $19.2 million, or 27 cents a share. The

company announced preliminary results earlier in January.

Shares of Take-Two recently rose 24 cents in after-hours trading to $18 after closing the regular session down 24 cents to $17.76.