On Sept. 10, game developer Take-Two Interactive Software
- 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* |
|
---|---|---|---|
Gross Margin |
18.5% |
23.7% |
(5.2) |
Operating Margin |
(27.7%) |
(19.5%) |
(8.2) |
Net Margin |
(28.4%) |
(37.9%) |
9.5 |
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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