Key Developments For Take-Two Interactive Software Inc.
Take-Two Interactive Software Inc. (TTWO.O) (Nasdaq)
Take-Two Interactive Software, Inc. Lowers Upper End of Prior Q4 2009 Guidance; Narrows FY 2009 EPS Guidance Below Analysts' Estimates; Raises Low End of Prior FY 2009 Revenue Guidance
Take-Two Interactive Software, Inc. revised its fourth quarter of 2009 guidance and expects revenue of $350-$375 million and non-GAAP EPS of $0.30-$0.35. For fiscal 2009, it has revised its guidance and expects revenue of $0.975-$1.0 billion and non-GAAP earnings per share (EPS) of $(0.81)-$(0.87). According to Reuters Estimates, analysts were expecting the Company to report revenue of $370 million and EPS of $0.35 for fourth quarter of 2009; revenue of $984 million and EPS of $(0.88) for fiscal 2009.
Take-Two Interactive Software, Inc. Announces Settlement of Securities Class Action
Take-Two Interactive Software, Inc. announced that it has reached an agreement in principle to settle a previously disclosed consolidated securities class action currently pending in the United States District Court for the Southern District of New York (the Court) against the Company, Rockstar Games, and certain of the Company`s current and former officers and directors. The class action was related to allegations of the purported Hot Coffee content contained in the Company`s Grand Theft Auto: San Andreas title and historical stock option granting practices. Under the proposed settlement, the class action will be dismissed in exchange for an aggregate payment of $20,115,000 into a settlement fund for the benefit of class members, of which $15,200,000 will be paid by the Company`s insurance carriers, and $4,915,000 will be paid by the Company.
Take-Two Interactive Software, Inc. Lowers FY, Q3, Q4 2009 Guidance
Take-Two Interactive Software, Inc. reduced fiscal 2009 guidance and expects revenues of $0.96-$1.0 billion and non-GAAP EPS of $(0.80)-$(0.95). For third quarter of 2009, it expects revenue of $120-$130 million, non-GAAP EPS of $(0.65)-$(0.75). For fourth quarter of 2009, it expects revenue of $350 to $400 million, non-GAAP EPS of $0.30-$0.40. According to Reuters Estimates, analysts were expecting the Company to report revenue of $1.119 billion and EPS of $0.07 for fiscal 2009; revenues of $159.57 million and EPS of $(0.56) for third quarter of 2009; revenues of $473.55 million and EPS of $1.15 for fourth quarter of 2009.
Take-Two Interactive Software, Inc. Prices $120 Million of Convertible Senior Notes
Take-Two Interactive Software, Inc. announced the pricing of $120 million of 4.375% convertible senior notes due 2014. The Company had previously announced a proposed notes offering of $100 million in gross proceeds. The offering size was increased to $120 million in gross proceeds based on market demand. In addition, the Company has granted the underwriters the option to purchase up to an additional $18 million of notes on the same terms and conditions to cover over allotments, if any. The notes will pay interest semi annually at a rate of 4.375% per annum and will mature on June 1, 2014. The notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of 93.6768 shares of the Company's common stock per $1,000 principal amount of notes. The initial conversion price represents a conversion premium of 25% over the last reported sale price of the common stock of $8.54 per share. Prior to December 1, 2013, the notes will be convertible only upon specified events and, thereafter, at any time. Upon conversion, the notes may be settled, at the Company's election, in cash, shares of the Company's common stock, or a combination of cash and shares of the Company's common stock. The Company may redeem some or all of the notes for cash under certain circumstances on or after June 5, 2012. The closing of the convertible senior notes offering is expected to occur on June 3, 2009.
Take-Two Interactive Software, Inc. to Offer $100 Million of Convertible Senior Notes
Take-Two Interactive Software, Inc. announced that it intends to offer $100 million of convertible senior notes due 2014. The Company also expects to grant the underwriters an option to purchase up to $15 million of additional notes to cover over-allotments. In connection with the offering of the notes, the Company expects to enter into convertible note hedge transactions with affiliates of J.P. Morgan Securities Inc. and Barclays Capital Inc. The Company expects to use a portion of the net proceeds from this offering to pay the cost of the convertible note hedge transaction (after such cost is partially offset by proceeds from the sale of the warrants). If the underwriters exercise their over-allotment option to purchase additional notes, the Company may sell additional warrants and use a portion of the proceeds from the sale of the additional notes, together with the proceeds from the sale of the additional warrants, to enter into additional convertible note hedge transactions. The remaining net proceeds from the sale of the notes and the warrants will be used for general corporate purposes.
