Take-Two Enjoying BioShock: Fool by Numbers (TTWO)

Take-Two Enjoying BioShock: Fool by Numbers

By Motley Fool Contributors | More Articles
September 11, 2007 | Comments (0)

On Sept. 10, game developer Take-Two Interactive Software (Nasdaq: TTWO ) released third-quarter earnings for the period ended July 31.

Revenue dropped 14.4% to $206.4 million due to last year's strong sales of its Grand Theft Auto franchise.
During the quarter, the company released a new horror franchise, BioShock.
The company released positive adjusted guidance of $1.30 to $1.50 for the 2008 fiscal year based on a strong pipeline of games, including the latest Grand Theft Auto release.
Take-Two is a two-star stock in Motley Fool CAPS, our free interactive stock database, where five stars is the tops. Game developers Electronic Arts (Nasdaq: ERTS ) and Activision (Nasdaq: ATVI ) have earned three and four stars, respectively.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q3 2007	Q3 2006	Change
Sales	$206.4	$241.2	(14.4%)
Net Profit	($58.5)	($91.4)	N/A
EPS	($0.81)	($1.29)	N/A
Diluted Shares	72.1	71.1	1.4%

Get back to basics with the income statement.

Margin Checkup

Q3 2007	Q3 2006	Change*
18.5%	23.7%	(5.2)
(27.7%)	(19.5%)	(8.2)
(28.4%)	(37.9%)	9.5

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q3 2007	Q3 2006	Change
Cash + ST Invest.	$61.6	$179.1	(65.6%)
Accounts Rec.	$100.4	$98.0	2.4%
Inventory	$75.8	$83.2	(8.9%)

Liabilities	Q3 2007	Q3 2006	Change
Accounts Payable	$93.3	$80.1	16.5%
Long-Term Debt	$11.0	$0.0	N/A

The balance sheet reflects the company's health.

Cash Flow Highlights

	YTD 2007	YTD 2006	Change
Cash From Ops.	($72.8)	$84.4	N/A
Capital Expenditures	$16.6	$18.6	(10.6%)
Free Cash Flow	($89.4)	$65.8	N/A

Free cash flow is a Fool's best friend.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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