Take-Two Interactive Bleeds Red
The red ink gushed out of Take-Two Interactive in the company’s second quarter due to rising product costs and a huge write-off. And in a possible sign of more bad news to come, company executives declined to give any financial guidance for the current quarter or the rest of the year, citing the difficulty of providing forecasts in a difficult market environment.
Investors frowned on the news. In recent after-hours exchanges following the report, Take-Two shares were off $1.92, or 11%, to $14.85.In the quarter ended April 30, the video-game-software publisher lost $50.4 million, or 71 cents a share. In contrast, the company lost just $8.2 million, or 12 cents a share, in the year-earlier quarter. The loss grew in spite of the fact that sales jumped 19% year over year to $265.1 million.
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