Take Two Loss Grows, But Profit Outlook Improves

Take Two Interactive Software reported a deeper loss, but the video game publisher's shares rose as the company projected an improved profit outlook.

Paul Sakuma / AP Take Two Interactive now expects to release the next version of Grand Theft Auto in the second quarter. (AP Photo/Paul Sakuma)

The company's bullish forecast revolves around anticipation of the launch of "Grand Theft Auto 4" next month.

Orders for the game were better than expected, Chairman Strauss Zelnick said in a Reuters interview, adding that a recent $1.9 billion takeover offer from Electronic Arts was still the "wrong price and wrong time".

Take-Two said its net loss for its first fiscal quarter ended Jan. 31 was $38 million, or 52 cents per share, compared to a loss of $21.6 million, or 30 cents per share, a year earlier. Revenue was $240.4 million, down 13.3 percent on the year.

Excluding stock-based compensation and reorganization costs, the loss was 41 cents, narrower than the 51 cents expected by Wall Street, according to Reuters Estimates.

The company said that for its second fiscal quarter it expected a profit excluding special items of between $1.00 to $1.10 per share on revenue of between $450 million to $500 million.

The midpoints of those ranges are above the average Wall Street forecasts for a profit of 99 cents per share and revenue of $460 million.

Shares of Take Two rose about 3 percent in extended trading Tuesday after closing 0.8 percent lower at $24.65.

© 2008 CNBC.com