Take-Two delays annual report

New financial accounting regulations push publisher's report back a couple of weeks; final sales figures not expected to change.

In a conference call with investors earlier this month, Take-Two released disappointing preliminary results for its 2005 fiscal year, citing mildly increased sales but reduced earnings per share. More-concrete numbers for the company's fiscal year, which ended October 31, 2005, were expected to be forthcoming, but today the company filed a notice with the Securities and Exchange Commission saying it needs a little more time to get its annual report ready.

The annual report is typically released within 90 days of the end of a company's fiscal year (which would be January 29 for Take-Two), but the extension gives the company until February 13 to file with the SEC. Take-Two blamed the delay in part on complications associated with complying with new federal regulations set up after the collapse of Enron and WorldCom due to shady corporate accounting practices. The company also said it had discovered deficiencies in the way it recorded payments for inventory purchases and couldn't ensure it was accurately keeping track of software development payments.

Take-Two has said it is taking steps to fix these deficiencies, and it will outline those when it files the annual report. Furthermore, the company doesn't expect that the numbers in the final report, when filed, will deviate from the preliminary results it gave earlier this month.

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Discussion

8 comments
tienchiha
tienchiha

That is not good, no company needs to die because of shady practise that wasn't their fault. Yes it was their fault, they knew damn well that the game had it in there and they did it anyway. So basically they just said,"Hey heres a Rated M game," and then make it hackable (how many games are hackable?) so it becomes an AO game. They deserve to die, them stupid dumbasses.

forever_blank
forever_blank

That is not good, no company needs to die because of shady practise that wasn't their fault.

Viquist
Viquist

oh well... hate to see them in trouble but I don't buy their games anyway

ghsacidman
ghsacidman

It's not looking good for Take Two. I hope they pull out of this slum. If they don't...... no more GTA.

hittin
hittin

Bad to hear, i loved GTA games.

NeoJedi
NeoJedi

Hmmm asking for a extension for a quarterly report is not good news... Let's hope it's not too bad.