Take-Two Gets More Subpoenas, Delays Financials | PSP News

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Take-Two Gets More Subpoenas, Delays Financials

September 2nd, 2006, 16:20 Posted By: wraggster

News from IGN

Today Take-Two announced it had received additional grand jury subpoenas seeking information on its financial practices. As a result, the publisher is delaying its full third-quarter fiscal earnings report.

In June, the New York District Attorney's office subpoenaed Take-Two for financial records dating back to fall 2001, and for information relating to the dead horse named Hot Coffee. The most recent subpoenas request documents regarding stock options and other equity based compensation from November 2001 to the present.

Take-Two said it would not report its full earnings statement until the investigation is concluded. It did release some preliminary results, though; particularly that analysts' prediction for net revenue in Q3 (ended July 31, 2006) revenue was accurate, around $240 million, up from $169.9 million for the third quarter of fiscal 2005. However, it said estimates for profit were "too high." Take-Two continues to cite the industry transition as a primary reason for underperformance.

As if this all weren't enough, Take-Two said a "Rockstar PSP title based on a premier brand" would be pushed back from its planned fourth quarter release date. Rockstar has not announced the title yet, and Vice City Stories is still scheduled to ship this October. (Pure speculation: Red Dead Revolver?)

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