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Take-Two Interactive Software, Inc.$92.07$1.131.24%

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 Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal Year 2015
   Monday, May 18, 2015 4:05:02 PM ET

--Non-GAAP Net Income was $1.98 Per Diluted Share

--Provides Profitable Non-GAAP Financial Outlook for Fiscal Year 2016

--Increases Share Repurchase Authorization to 10 Million Shares

Take-Two Interactive Software, Inc. (TTWO ) today reported strong revenues and better-than-expected Non-GAAP earnings for its fourth quarter and fiscal year 2015, ended March 31, 2015, and provided its initial financial outlook for its first quarter and fiscal year 2016. In addition, the Company announced that its Board of Directors has approved an increase to its share repurchase authorization up to an aggregate of 10 million shares of Take-Two’s common stock.



Fiscal Fourth Quarter 2015

GAAP Financial Results

For fiscal fourth quarter 2015, GAAP net revenue grew 54% to $300.1 million, as compared to $195.2 million for fiscal fourth quarter 2014. GAAP net loss was $242.8 million, or $2.99 per diluted share, as compared to $30.8 million, or $0.40 per diluted share, for the year-ago period. GAAP results for fiscal fourth quarter 2015 reflect the deferral of net revenue and cost of goods sold related to sell-in of certain titles during the quarter.

During fiscal fourth quarter 2015, the Company’s cash and short-term investments balance increased to $1.098 billion as of March 31, 2015, up from $976.6 million as of December 31, 2014.

Non-GAAP Financial Results

For fiscal fourth quarter 2015, Non-GAAP net revenue grew 83% to $427.7 million, as compared to $233.2 million for fiscal fourth quarter 2014. Non-GAAP net income increased to $54.3 million, or $0.49 per diluted share, as compared to $21.5 million, or $0.21 per diluted share, for the year-ago period.

The largest contributors to Non-GAAP net revenue in fiscal fourth quarter 2015 were Grand Theft Auto V(R) and Grand Theft Auto Online, Evolve(TM), NBA(R) 2K15 and Borderlands(R): The Handsome Collection(TM),. Non-GAAP net revenue from digitally-delivered content grew 66% year-over-year to $202.5 million, led by offerings from the Grand Theft Auto, NBA 2K, Evolve, Borderlands and WWE(R) 2K series. Revenue from recurrent consumer spending (virtual currency, downloadable add-on content and online games) grew 47% year-over-year and accounted for 54% of Non-GAAP net revenue from digitally-delivered content. Catalog sales accounted for $78.3 million of Non-GAAP net revenue led by the Grand Theft Auto and Borderlands series.

Fiscal Year 2015

GAAP Financial Results

For fiscal year 2015, GAAP net revenue was $1.083 billion, as compared to $2.351 billion for fiscal year 2014, which had benefited from the record-breaking launch of Grand Theft Auto V for PlayStation 3 and Xbox 360. GAAP net loss was $279.5 million, or $3.48 per diluted share, as compared to GAAP net income of $361.6 million, or $3.20 per diluted share, for the prior fiscal year. GAAP results for fiscal year 2015 reflect the deferral of net revenue and cost of goods sold related to sell-in of certain titles during the fiscal third and fourth quarters.

Non-GAAP Financial Results

For fiscal year 2015, Non-GAAP net revenue was $1.669 billion, as compared to $2.414 billion for fiscal year 2014. Non-GAAP net income was $219.2 million, or $1.98 per diluted share, as compared to $510.7 million, or $4.26 per diluted share, for the prior fiscal year.

The largest contributors to Non-GAAP net revenue in fiscal year 2015 were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K15, WWE 2K15, Evolve and Borderlands: The Pre-Sequel. Non-GAAP net revenue from digitally-delivered content grew 42% year-over-year to a record $616.0 million, led by offerings from the Grand Theft Auto, NBA 2K, Borderlands, Sid Meier’s Civilization and Evolve series. Revenue from recurrent consumer spending grew 45% year-over-year and accounted for 49% of Non-GAAP net revenue from digitally-delivered content.

Management Comments

"Our strong fourth quarter revenues and better-than-expected Non-GAAP profits marked an outstanding close to one of our Company’s best years ever," said Strauss Zelnick, Chairman and CEO of Take-Two. "During fiscal 2015, we seamlessly launched five triple-A titles for the holiday season led by Grand Theft Auto V and NBA 2K15; added an exciting new franchise with the successful release of Evolve; and achieved record digitally-delivered revenue, including our highest-ever revenues from recurrent consumer spending. Our business generated significant cash flow and, as a result, we ended the fiscal year with $1.1 billion in cash and short-term investments.

"Fiscal 2016 is off to a great start, highlighted by the April launch of Grand Theft Auto V for the PC, which has exceeded our expectations. Throughout the coming year, we will continue to execute our proven strategy of launching a select array of the highest-quality titles, led by new annual releases of NBA 2K and WWE 2K; Battleborn, a groundbreaking new intellectual property from Gearbox Software; and a soon-to-be announced new triple-A title from 2K. We also will continue to deliver innovative offerings designed to promote ongoing engagement with our games and drive recurrent consumer spending. Beyond fiscal 2016, we have a robust development pipeline and our Company is well-positioned to deliver growth and margin expansion over the long-term."

Business and Product Highlights

Since January 1, 2015:

Rockstar Games:

-- Launched Grand Theft Auto V and Grand Theft Auto Online on the PC. Grand Theft Auto V has now sold-in nearly 52 million units across PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC.

-- Released Grand Theft Auto Online Heists - a four-player co-op mode for Grand Theft Auto Online that enables players to plan, prepare and execute multi-tiered Heists across Los Santos and Blaine County - as a free update on PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC.

2K:

-- Launched Evolve on Xbox One, PlayStation 4 and PC. Developed by Turtle Rock Studios, Evolve is being supported with a robust array of downloadable add-on content, including a Hunting Season Pass, as well as a companion App - Evolve: Hunters Quest. The game received positive reviews from influential critics, including IGN which scored it 9 out of 10 and Game Informer which scored it 8.5 out of 10, and has sold-in approximately 2.5 million units to date.

-- Released Borderlands: The Handsome Collection on PlayStation 4 and Xbox One. The Handsome Collection includes Borderlands 2 and Borderlands: The Pre-Sequel along with all of the downloadable content for both titles.

-- Launched Sid Meier’s Starships(TM) on PC, Mac and iPad. This turn-based, tactical space combat game features cross-connectivity and unlockable bonuses with Sid Meier’s Civilization: Beyond Earth.

-- Brought WWE simulation video gaming to the PC and mobile platforms for the first time ever with the release of WWE 2K15 for PC and WWE 2K for iOS and Android.

-- Announced that Sid Meier’s Civilization: Beyond Earth - Rising Tide, an expansion pack for the popular PC title from Firaxis Games, is planned for release in fall 2015.

Financial Outlook for Fiscal 2016

Take-Two is providing its initial financial outlook for its fiscal first quarter ending June 30, 2015 and fiscal year ending March 31, 2016 as follows:

                                                                         First Quarter             Fiscal Year
                                                                                                             Ending 6/30/2015         Ending 3/31/2016
                                                                                                           -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                           
                                                                Non-GAAP net revenue                       $325 to $350 Million                                           $1.3 to $1.4 Billion
                                                                                                                                                                           
                                           Non-GAAP net income per diluted share (1)                          $0.25 to $0.35                                                 $0.75 to $1.00
                                                                                                                                                                           
                                             GAAP to Non-GAAP Reconciling Items (2):
                        ------------------------------------------------------------
                                                                                                                                                                           
                        Net effect from deferral in net revenues and related cost of                               $0.17                                                         ($0.51)
                                                                          goods sold
                                                                                                                                                                           
                                                Stock-based compensation expense (3)                               $0.12                                                          $0.47
                                                                                                                                                                           
                         Business reorganization, restructuring and related expenses                               $0.01                                                          $0.01
                                                                                                                                                                           
                              Non-cash amortization of discount on convertible notes                               $0.03                                                          $0.14
                                                                                                                                                                           
                                                                Non-cash tax expense                               $0.00                                                          $0.02
                                                                                                                                                                           
                                                                                                                                                                           
1)   For the fiscal first quarter ending June 30, 2015 and fiscal year
                        ending March 31, 2016, the Non-GAAP net income per diluted share
                        outlook is calculated using the "if-converted" method as a result
                        of the issuances of our 1.75% Convertible Notes in November 2011
                        and 1.00% Convertible Notes in June 2013, and Non-GAAP diluted net
                        income for the first quarter and fiscal year is adjusted by
                        adding-back $1.4 million and $5.6 million, respectively, related
                        to coupon interest and debt issuance costs, net of tax. Shares
                        used to calculate the Non-GAAP net income per diluted share
                        outlook are as follows:
                                                                                                                                                                           
                                                                                                               82.5 Million                                                   83.0 Million
                            Weighted average basic shares
                                                                                                                5.0 Million                                                    4.5 Million
                              Add: Weighted average participating shares
                                                                                                               26.5 Million                                                   26.5 Million
                              Add: Potential Dilution from convertible notes
                                                                                                               114.0 Million                                                  114.0 Million
                            Total weighted average diluted shares
                                                                                                                                                                           
2)                      All GAAP to Non-GAAP reconciling items are net of tax and per
                        share.
3)                      The Company’s stock-based compensation expense for the periods
                        above includes the cost of approximately 0.6 million restricted
                        stock units previously granted to ZelnickMedia that are subject to
                        variable accounting. Actual expense to be recorded in connection
                        with these shares is dependent upon several factors, including
                        future changes in Take-Two’s stock price.
                         

Key assumptions and dependencies underlying the Company’s financial outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of the Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these new-generation systems while continuing to leverage opportunities on the Xbox 360, PlayStation 3 and PC; and stable foreign exchange rates. See also "Cautionary Note Regarding Forward Looking Statements" below.

Product Releases

The following titles were released since January 1, 2015:

Label              Title                                                                        Platforms                               Release Date
-------------- -------------------- -------------------- ------------------------------------------------------------------------ -------------------- -------------------- ----------------------------------- -------------------- -------------------- --------------------
2K                 WWE 2K15: New Moves Pack (DLC)                                               Xbox 360, Xbox One, PS3, PS4            January 13, 2015
2K                                                       Borderlands: The Pre-Sequel - Lady Hammerlock Pack (DLC)                                              Xbox 360, PS3, PC                                                             January 27, 2015
2K                                                       Evolve: Hunters Quest                                                                                              iOS, Amazon, Windows Phone, Android                                           January 29, 2015
2K                                                       WWE 2K15: 2K Showcase: One More Match (DLC)                                                                        Xbox 360, Xbox One, PS3, PS4                                                  February 3, 2015
2K                                                       Evolve                                                                                                             Xbox One, PS4, PC                                                             February 10, 2015
2K                                                       WWE 2K15: 2K Showcase: Hall of Pain (DLC)                                                                          Xbox 360, Xbox One, PS3, PS4                                                  February 17, 2015
2K                                                       WWE 2K15: NXT ArRIVAL Pack (DLC)                                                                                   Xbox 360, Xbox One, PS3, PS4                                                  March 10, 2015
2K                                                       Sid Meier’s Starships                                                                   PC, Mac, iPad                                                                 March 12, 2015
2K                                                       Borderlands: The Pre-Sequel - Claptastic Voyage (DLC)                                                 Xbox 360, PS3, PC                                                             March 24, 2015*
2K                                                       Borderlands: The Pre-Sequel - Ultimate Vault Hunter Upgrade                                           Xbox 360, PS3, PC                                                             March 24, 2015*
                                                         Pack 2 (DLC)
2K                                                       Borderlands: The Handsome Collection                                                                               Xbox One, PS4                                                                 March 24, 2015*
2K                                                       WWE 2K15: Path of the Warrior Pack (DLC)                                                                           Xbox 360, Xbox One, PS3, PS4                                                  March 31, 2015
2K                                                       Evolve: Behemoth, Hunters, Observer Mode & Maps (DLC)                                                              Xbox One, PS4, PC                                                             March 31, 2015
Rockstar Games                                           Grand Theft Auto V                                                                                                 PC                                                                            April 14, 2015
2K                                                       WWE 2K                                                                                                             iOS and Android Devices                                                       April 16, 2015
2K                                                       WWE 2K15                                                                                                           PC                                                                            April 28, 2015
                                                                                                                                                                                                                                                           
*North American release date; international release date
followed three days after.
 

Take-Two’s lineup of future titles announced to date includes:

Label     Title                                                                                                      Platforms                                    Release Date
----- -------------------- -------------------- ------------------------------------------------------------------------------------------------------ -------------------- -------------------- ---------------------------------------- -------------------- -------------------- --------------------
2K        WWE 2K16                                                                                                   Xbox 360, Xbox One, PS3, PS4                 October 27, 2015*
2K                                              Sid Meier’s Civilization Beyond Earth - Rising Tide (expansion                                           PC                                                                                 Fall 2015
                                                pack)
2K                                              NBA 2K16                                                                                                                                         Xbox 360, Xbox One, PS3, PS4, PC, Mobile                                           Fall 2015
2K                                              Battleborn                                                                                                                                       PS4, Xbox One, PC                                                                  Fiscal Year 2016
                                                                                                                                                                                                                                                                                     
*North American release date; international release date
followed three days after.
                                                                                                                                                                                                                                                                                     

Share Repurchase Authorization

Take-Two also announced that its Board of Directors has authorized an increase in the number of its shares of common stock that the Company is permitted to repurchase, up to an aggregate of 10 million shares. The authorization permits the Company to purchase shares from time to time through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. It does not obligate the Company to make any purchases at any specific time or situation. Repurchases are subject to the availability of stock, prevailing market conditions, the trading price of the stock, the Company’s financial performance and other conditions. The program may be suspended or discontinued at any time for any reason. As of May 15, 2015, the Company had approximately 84.61 million common shares outstanding.

Conference Call

Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses Non-GAAP measures of financial performance. The Company believes that these Non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, are important in gaining an understanding of the Company’s ongoing business. These Non-GAAP financial measures also provide for comparative results from period to period. Therefore, the Company believes it is appropriate to exclude the following Non-GAAP items, net of applicable taxes, as discussed below:

-- Net effect from deferral in net revenues and related cost of goods sold - the Company defers revenue and related costs from the sale of certain titles that have undelivered elements upon the sale of the game and recognizes that revenue upon the delivery of the undelivered elements. The Company also defers revenue and related costs for certain sales generated from certain titles for which we have or expect to provide certain additional add-on content. These amounts are deferred over the estimated remaining life of the game to which they pertain. As there is no impact to the Company’s operating cash flow, management excludes the impact of deferred net revenue and related costs from its Non-GAAP financial measures when evaluating the Company’s operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. In addition, we believe that these Non-GAAP financial measures provide a more timely indication of trends in our business, provide comparability with the way our business is measured by analysts, and provide consistency with industry data sources.

-- Stock-based compensation - the Company does not consider stock-based compensation charges when evaluating business performance and management does not contemplate stock-based compensation expense in its short- and long-term operating plans. As a result, the Company has excluded such expenses from its Non-GAAP financial measures.

-- Business reorganization, restructuring and related expenses - although the Company has incurred business reorganization expenses in the past, each charge relates to a discrete event based on a unique set of business objectives. Management does not believe these charges reflect the Company’s primary business, ongoing operating results or future outlook. As such, the Company believes it is appropriate to exclude these expenses and related charges from its Non- GAAP financial measures.

-- Non-cash amortization of discount on convertible notes - the Company records non-cash amortization of discount on convertible notes as interest expense in addition to the interest expense already recorded for coupon payments. The Company excludes the non-cash portion of the interest expense from its Non-GAAP financial measures because these amounts are unrelated to its ongoing business operations.

-- Loss on extinguishment of debt - the Company recorded a loss on extinguishment of debt as a result of settling its 4.375% Convertible Notes in August 2013. The Company excludes the impact of such transactions when evaluating the Company’s operating performance. Management does not believe this loss reflects the Company’s primary business, ongoing operating results or future outlook. As such, the Company believes it is appropriate to exclude this loss from its Non-GAAP financial measures.

-- Gain on convertible note hedge and warrants, net - the Company entered into unwind agreements with respect to its convertible note hedge and warrant transactions. As a result of the unwind agreements, these transactions were accounted for as derivatives whereby gains and losses resulting from changes in the fair value were reported as a gain on convertible note hedge and warrants, net. The Company excludes the impact of such transactions when evaluating the Company’s operating performance. Management does not believe these gains and losses reflect the Company’s primary business, ongoing operating results or future outlook. As such, the Company believes it is appropriate to exclude these gains and losses from its Non-GAAP financial measures.

-- Non-cash tax expense for the impact of deferred tax liabilities associated with tax deductible amortization of goodwill - due to the nature of the adjustment as well as the expectation that it will not have any cash impact in the foreseeable future, the Company believes it is appropriate to exclude this expense from its Non-GAAP financial measures.

-- Gain on long-term investments, net - from time to time, the Company makes strategic investments. The Company excludes the impact of any gains and losses on such investments from its Non-GAAP financial measures.

-- Discontinued operations - the Company does not engage in sales of subsidiaries on a regular basis and therefore believes it is appropriate to exclude such gains (losses) from its Non-GAAP financial measures. As the Company is no longer active in its discontinued operations, it believes it is appropriate to exclude income (losses) thereon from its Non-GAAP financial measures.

These Non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. These Non-GAAP financial measures may be different from similarly titled measures used by other companies.

Final Results

The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K. Our products are designed for console systems and personal computers, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com .

All trademarks and copyrights contained herein are the property of their respective holders.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company’s future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: our dependence on key management and product development personnel, our dependence on our Grand Theft Auto products and our ability to develop other hit titles, the timely release and significant market acceptance of our games, the ability to maintain acceptable pricing levels on our games, our ability to raise capital if needed and risks associated with international operations. Other important factors and information are contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014, including the risks summarized in the section entitled "Risk Factors," the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2014, and the Company’s other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

 
                                                                                                                                                     TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                                                                             CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                           (in thousands, except per share amounts)
                                                                                                                                                                                                                              
                                                                                                                                  Three months ended March 31,                                                                                                                    Twelve months ended March 31,
                                                                                   --------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                       2015                              2014                              2015                               2014    
                                                                                   -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                            
Net revenue                                                                                           $  300,089                                           $ 195,208                                           $ 1,082,938                                           $ 2,350,568  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                            
Cost of goods sold:
    Internal royalties                                                                                   271,907                                                                 28,233                                                                  306,717                                                                  538,604
    Software development costs and royalties                                                              86,752                                                                 28,299                                                                  231,615                                                                  333,450
    Product costs                                                                                         39,389                                                                 39,022                                                                  178,810                                                                  477,861
    Licenses                                                                           12,634                           12,734                             77,725                             64,412  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total cost of goods sold                                                              410,682                          108,288                            794,867                          1,414,327  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                            
Gross profit (loss)                                                                                     (110,593 )                                                               86,920                                                                  288,071                                                                  936,241
                                                                                                                                                                                                                                                                                                            
    Selling and marketing                                                                                 52,467                                                                 27,577                                                                  235,341                                                                  240,996
    General and administrative                                                                            38,202                                                                 50,773                                                                  175,093                                                                  161,374
    Research and development                                                                              35,157                                                                 28,632                                                                  115,043                                                                  105,256
    Depreciation and amortization                                                       5,934                            3,522                             21,057                             13,359  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total operating expenses                                                              131,760                          110,504                            546,534                            520,985  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) from operations                                                                           (242,353 )                                                              (23,584 )                                                               (258,463 )                                                                415,256
Interest and other, net                                                                                   (7,204 )                                                               (7,535 )                                                                (31,893 )                                                                (33,553 )
Gain on long-term investment, net                                                                              -                                                                      -                                                                   17,476                                                                        -
Loss on extinguishment of debt                                                                                 -                                                                      -                                                                        -                                                                   (9,014 )
Gain on convertible note hedge and warrants, net                                                               -                                -                                  -                              3,461  
------------------------------------------------------------                                            -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) from continuing operations before income taxes                                            (249,557 )                                                              (31,119 )                                                               (272,880 )                                                                376,150
Provision (benefit) for income taxes                                                                      (6,766 )                                              (345 )                                               6,590                             14,459  
------------------------------------------------------------                                            -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) from continuing operations                                                                (242,791 )                                                              (30,774 )                                                               (279,470 )                                                                361,691
Loss from discontinued operations, net of taxes                                             -                              (13 )                                                   -                                (86 )
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income (loss)                                                                                     $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   361,605  
============================================================                       ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
Earnings (loss) per share:
Continuing operations                                                                                 $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.79
Discontinued operations                                                                     -                                -                                  -                                  -  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Basic earnings (loss) per share                                                                       $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.79  
============================================================                       ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
Continuing operations                                                                                 $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.20
Discontinued operations                                                                     -                                -                                  -                                  -  
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Diluted earnings (loss) per share                                                                     $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.20  
============================================================                       ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
Weighted average shares outstanding:                                                                                                                                                                                                               
------------------------------------------------------------                       ---------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Basic                                                                                                     81,085                                                                 77,000                                                                   80,367                                                                   95,347
Diluted                                                                                81,085                           77,000                             80,367                            124,710  
============================================================                       ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
Computation of Basic EPS:
    Net income (loss)                                                                                 $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   361,605
    Less: net income allocated to participating securities                                  -                                -                                           $         -                            (41,065 )
                                                                                   -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Net income (loss) for basic EPS calculation                                                   $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   320,540  
                                                                                   ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
    Weighted average shares outstanding - basic                                                           81,085                                                                 77,000                                                              $    80,367                                                                   95,347
    Less: weighted average participating shares outstanding                                 -                                -                                  -                            (10,828 )
                                                                                   -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Weighted average common shares outstanding - basic                               81,085                           77,000                                           $    80,367                             84,519  
                                                                                   ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                   
                                                                                   ---------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
    Basic EPS                                                                                         $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.79  
                                                                                   ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
Computation of Diluted EPS:
    Net income (loss)                                                                                 $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   361,605
    Less: net income allocated to participating securities                                                     -                                                                      -                                                                        -                                                                  (31,397 )
    Add: interest expense, net of tax, on Convertible Notes                                 -                                -                                  -                             33,718  
                                                                                   -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Net income (loss) for diluted EPS calculation                                                 $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   363,926  
                                                                                   ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
    Weighted average shares outstanding - basic                                                           81,085                                                                 77,000                                                                   80,367                                                                   84,519
    Add: dilutive effect of common stock equivalents                                        -                                -                                  -                             29,363  
                                                                                   -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Weighted average common shares outstanding - diluted                             81,085                           77,000                             80,367                            113,882  
                                                                                   ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                   
                                                                                   ---------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
    Diluted EPS                                                                                       $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.20  
                                                                                   ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                            
                                                                                                                                  Three months ended March 31,                                                                                                                    Twelve months ended March 31,
                                                                                   --------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
OTHER INFORMATION                                                                      2015                              2014                              2015                               2014    
------------------------------------------------------------                       -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                            
Geographic revenue mix
        United States                                                                                         55 %                                                                   57 %                                                                     58 %                                                                     47 %
        International                                                                                         45 %                                                                   43 %                                                                     42 %                                                                     53 %
                                                                                                                                                                                                                                                                                                            
Platform revenue mix
        Console                                                                                               87 %                                                                   79 %                                                                     81 %                                                                     91 %
        PC and other                                                                                          13 %                                                                   21 %                                                                     19 %                                                                      9 %
                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                            
Net revenue by distribution channel:
        Physical retail and other                                                                             52 %                                                                   57 %                                                                     58 %                                                                     84 %
        Digital online                                                                                        48 %                                                                   43 %                                                                     42 %                                                                     16 %
                                                                                                                                                                                                                                                                                                                                           
 
                                                                                   TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                CONSOLIDATED BALANCE SHEETS
                                                                                         (in thousands, except per share amounts)
                                                                                                                               
                                                                                                                   March 31,                                                                March 31,
                                                                                                  2015                               2014    
                                                                                             -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                       
                                 ASSETS
Current assets:
  Cash and cash equivalents                                                                                     $   911,120                                                              $   935,400
  Short-term investments                                                                                            186,929                                                                        -
  Restricted cash                                                                                                   169,678                                                                  193,839
  Accounts receivable, net of allowances of $70,471 and $75,518 at
  March 31, 2015 and
   2014, respectively                                                                                               217,860                                                                   53,143
  Inventory                                                                                                          20,051                                                                   29,780
  Software development costs and licenses                                                                           163,385                                                                  116,203
  Deferred cost of goods sold                                                                                        56,779                                                                    5,002
  Prepaid expenses and other                                                                      55,506                             66,073  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total current assets                                                                     1,781,308                          1,399,440  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                       
  Fixed assets, net                                                                                                  69,792                                                                   42,572
  Software development costs and licenses, net of current portion                                                   124,329                                                                  109,506
  Deferred cost of goods sold, net of current portion                                                                19,869                                                                      858
  Goodwill                                                                                                          217,288                                                                  226,705
  Other intangibles, net                                                                                              4,769                                                                    5,113
  Other assets                                                                                    13,745                             15,436  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total assets                                                                                              $ 2,231,100                                           $ 1,799,630  
=======================================================================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                       
                  LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
  Accounts payable                                                                                              $    38,789                                                              $    16,452
  Accrued expenses and other current liabilities                                                                    444,738                                                                  397,173
  Deferred revenue                                                                               482,733                             61,195  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total current liabilities                                                                  966,260                            474,820  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                       
Long-term debt                                                                                                      476,057                                                                  454,031
Non-current deferred revenue                                                                                        164,618                                                                   18,128
Other long-term liabilities                                                                       61,077                             50,845  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total liabilities                                                                        1,668,012                            997,824  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Commitments and contingencies
                                                                                                                                                                       
Stockholders’ equity:
  Preferred stock, $.01 par value, 5,000 shares authorized                                                                -                                                                        -
  Common stock, $.01 par value, 200,000 shares authorized; 104,594 and
  105,156 shares
   issued and 88,356 and 88,918 outstanding at March 31, 2015 and 2014,                                               1,046                                                                    1,052
   respectively
  Additional paid-in capital                                                                                      1,028,197                                                                  954,699
  Treasury stock, at cost (16,238 common shares at March 31, 2015 and                                              (276,836 )                                                               (276,836 )
  2014)
  (Accumulated deficit) retained earnings                                                                          (158,695 )                                                                120,775
  Accumulated other comprehensive (loss) income                                                  (30,624 )                                               2,116  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total stockholders’ equity                                                                 563,088                            801,806  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total liabilities and stockholders’ equity                                                                $ 2,231,100                                           $ 1,799,630  
=======================================================================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                      
 
                                                                                                     TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                        (in thousands)
                                                                                                                                           Twelve months ended March 31,
                                                                                                               ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      2015                                                 2014
                                                                                                               ---------------------------------------------------                     ---------------------------------------------------
                                                                                                                                                                                        
Operating activities:
                     Net income (loss)                                                                                            $ (279,470 )                                                            $  361,605
                     Adjustments to reconcile net income (loss) to net cash provided by
                     operating activities:
                         Amortization and impairment of software development costs and                                               133,453                                                                 265,533
                         licenses
                         Depreciation and amortization                                                                                21,057                                                                  13,359
                         Loss from discontinued operations                                                                                 -                                                                      86
                         Amortization and impairment of intellectual property                                                            344                                                                   3,558
                         Stock-based compensation                                                                                     65,246                                                                  78,118
                         Deferred income taxes                                                                                         2,279                                                                 (19,036 )
                         Amortization of discount on Convertible Notes                                                                22,026                                                                  22,801
                         Amortization of debt issuance costs                                                                           1,663                                                                   1,947
                         (Gain) on long-term investments, net                                                                        (17,476 )                                                                     -
                         Loss on extinguishment of debt                                                                                    -                                                                   9,014
                         Gain on convertible note hedge and warrants, net                                                                  -                                                                  (3,461 )
                         Other, net                                                                                                    2,068                                                                    (208 )
                     Changes in assets and liabilities, net of effect from purchases of
                     businesses:
                         Restricted cash                                                                                              24,161                                                                (186,350 )
                         Accounts receivable                                                                                        (164,717 )                                                               136,453
                         Inventory                                                                                                     9,729                                                                     438
                         Software development costs and licenses                                                                    (188,772 )                                                              (192,357 )
                         Prepaid expenses, other current and other non-current assets                                                  5,398                                                                 (20,590 )
                         Deferred revenue                                                                                            568,028                                                                  34,276
                         Deferred cost of goods sold                                                                                 (70,788 )                                                                 2,166
                         Accounts payable, accrued expenses and other liabilities                                                     78,585                                                                 194,228
                         Net cash used in discontinued operations                                                       -                            (1,318 )
                     --------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Net cash provided by operating activities                                                    212,814                           700,262  
                     --------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                        
Investing activities:
                     Purchase of fixed assets                                                                                        (49,501 )                                                               (29,813 )
                     Purchases of short-term investments                                                                            (187,616 )                                                                     -
                     Purchase of long-term investment                                                                                 (5,000 )                                                                     -
                     Cash received from the sale of long-term investment                                                              21,976                                                                       -
                     Payments in connection with business combinations, net of cash                                     -                            (1,000 )
                     acquired
                     --------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Net cash used in investing activities                                                       (220,141 )                                            (30,813 )
                     --------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                        
Financing activities:
                     Excess tax benefit from stock-based compensation                                                                    928                                                                       -
                     Repurchase of common stock                                                                                            -                                                                (276,836 )
                     Proceeds from issuance of 1.00% Convertible Notes                                                                     -                                                                 283,188
                     Payment for extinguishment of 4.375% Convertible Notes                                                                -                                                                (165,999 )
                     Proceeds from termination of convertible note hedge transactions                                                      -                                                                  84,429
                     Payment for termination of convertible note warrant transactions                                                      -                                                                 (55,651 )
                     Payment of debt issuance costs for the issuance of 1.00% Convertible            -                            (2,815 )
                     Notes
                     -------------------------------------------------------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Net cash provided by (used in) financing activities                                              928                          (133,684 )
                     --------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                        
                     Effects of foreign exchange rates on cash and cash equivalents            (17,881 )                                             (2,867 )
                     -------------------------------------------------------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                        
                     Net (decrease) increase in cash and cash equivalents                                                            (24,280 )                                                               532,898
                     Cash and cash equivalents, beginning of year                                                 935,400                           402,502  
                     --------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Cash and cash equivalents, end of period                                                                     $  911,120                                           $  935,400  
                     ====================================================================                      ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                                      
 
                                                                                                                                                            TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                                                                           RECONCILIATION OF GAAP TO Non-GAAP MEASURES (Unaudited)
                                                                                                                                                                  (in thousands, except per share amounts)
                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                         
                                                                                                                                               Three months ended March 31,                                                                                                 Twelve months ended March 31,
                                                                                                ---------------------------------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------------------------
                                                                                                    2015                              2014                              2015                               2014    
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net Revenues
    GAAP Net Revenues                                                                                              $  300,089                                                              $ 195,208                                                              $ 1,082,938                                                              $ 2,350,568
        Net effect from deferral in net revenues                                                   127,647                           37,947                            585,827                             63,152  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
    Non-GAAP Net Revenues                                                                                          $  427,736                                           $ 233,155                                           $ 1,668,765                                           $ 2,413,720  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                         
Digital Online Revenues (included in Net Revenues above)
    GAAP Digital Online Revenues                                                                                   $  144,612                                                              $  84,391                                                              $   455,299                                                              $   371,970
        Net effect from deferral in digital online revenues                                         57,920                           37,947                            160,675                             63,152  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
    Non-GAAP Digital Online Revenues                                                                               $  202,532                                           $ 122,338                                           $   615,974                                           $   435,122  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                         
Gross Profit
    GAAP Gross Profit (Loss)                                                                                       $ (110,593 )                                                            $  86,920                                                              $   288,071                                                              $   936,241
        Net effect from deferral in net revenues and related cost of goods                                            309,026                                                                 23,442                                                                  502,565                                                                   36,179
        sold
        Stock-based compensation                                                                     6,059                              948                             17,121                             30,124  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
    Non-GAAP Gross Profit                                                                                          $  204,492                                           $ 111,310                                           $   807,757                                           $ 1,002,544  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                         
Income (Loss) from Operations
    GAAP (Loss) Income from Operations                                                                             $ (242,353 )                                                            $ (23,584 )                                                            $  (258,463 )                                                            $   415,256
        Net effect from deferral in net revenues and related cost of goods                                            309,026                                                                 23,442                                                                  502,565                                                                   36,179
        sold
        Stock-based compensation                                                                                       12,772                                                                 20,524                                                                   65,246                                                                   78,118
        Business reorganization, restructuring and related                                               -                            2,560                                195                              4,490  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
    Non-GAAP Income (Loss) from Operations                                                                         $   79,445                                           $  22,942                                           $   309,543                                           $   534,043  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                         
Net Income (Loss)
    GAAP Net Income (Loss)                                                                                         $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   361,605
        Net effect from deferral in net revenues and related cost of goods                                            279,554                                                                 23,442                                                                  451,749                                                                   36,179
        sold
        Stock-based compensation                                                                                       11,450                                                                 20,524                                                                   36,206                                                                   78,118
        Business reorganization, restructuring and related                                                                  -                                                                  2,560                                                                      156                                                                    4,490
        Non-cash amortization of discount on Convertible Notes                                                          5,806                                                                  5,294                                                                   18,933                                                                   22,801
        Gain on long-term investment, net                                                                                   -                                                                      -                                                                   (9,999 )                                                                      -
        Loss on extinguishment of debt                                                                                      -                                                                      -                                                                        -                                                                    9,014
        Gain on convertible note hedge and warrants, net                                                                    -                                                                      -                                                                        -                                                                   (3,461 )
        Non-cash tax expense                                                                                              265                                                                    447                                                                    1,669                                                                    1,890
        Discontinued operations                                                                          -                               13                                  -                                 86  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
    Non-GAAP Net Income (Loss)                                                                                     $   54,284                                           $  21,493                                           $   219,244                                           $   510,722  
                                                                                                ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                         
Diluted Earnings (Loss) Per Share
    GAAP earnings (loss) per share                                                                                 $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.20
    Non-GAAP earnings (loss) per share                                                                             $     0.49                                                              $    0.21                                                              $      1.98                                                              $      4.26
                                                                                                                                                                                                                                                                                                                         
    Number of diluted shares used in computation
        GAAP                                                                                                           81,085                                                                 77,000                                                                   80,367                                                                  124,710
        Non-GAAP                                                                                                      114,034                                                                115,627                                                                  113,951                                                                  122,608
                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                         
Computation of Diluted GAAP EPS:
    Net income (loss)                                                                                              $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   361,605
      Less: net income allocated to participating securities                                                                -                                                                      -                                                                        -                                                                  (31,397 )
      Add: interest expense, net of tax, on Convertible Notes                                            -                                -                                  -                             33,718  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Net income (loss) for diluted EPS calculation                                                              $ (242,791 )                                                            $ (30,787 )                                                            $  (279,470 )                                                            $   363,926  
                                                                                                ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                         
    Weighted average shares outstanding - diluted                                                                      81,085                                                                 77,000                                                                   80,367                                                                   95,347
      Add: dilutive effect of common stock equivalents                                                   -                                -                                  -                             29,363  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Total weighted average shares outstanding - diluted                                                            81,085                                                                 77,000                                                                   80,367                                                                  124,710
      Less: weighted average participating shares outstanding                                            -                                -                                  -                            (10,828 )
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Weighted average common shares outstanding - diluted                                                           81,085                                                                 77,000                                                                   80,367                                                                  113,882
                                                                                                                                                                                                                                                                
                                                                                                ---------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
    Diluted earnings (loss) per share                                                                              $    (2.99 )                                                            $   (0.40 )                                                            $     (3.48 )                                                            $      3.20  
                                                                                                ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                         
Computation of Diluted Non-GAAP EPS:
    Non-GAAP net earnings (loss)                                                                                   $   54,284                                                              $  21,493                                                              $   219,244                                                              $   510,722
      Less: net income (loss) allocated to participating securities                                                    (3,091 )                                                               (2,224 )                                                                (13,716 )                                                                (45,104 )
      Add: interest expense, net of tax, on Convertible Notes                                        1,375                            2,204                              5,515                             10,917  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Net income for diluted earnings (loss) per share calculation                                               $   52,568                                           $  21,473                                           $   211,043                                           $   476,535  
                                                                                                ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                         
    Weighted average shares outstanding - basic                                                                        87,579                                                                 88,964                                                                   87,496                                                                   96,043
      Add: dilutive effect of common stock equivalents                                              26,455                           26,663                             26,455                             26,565  
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Total weighted average shares outstanding - diluted                                                           114,034                                                                115,627                                                                  113,951                                                                  122,608
      Less: weighted average participating shares outstanding                                       (6,494 )                                           (11,964 )                                              (7,129 )                                             (10,828 )
                                                                                                -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Weighted average common shares outstanding - diluted                                                          107,540                                                                103,663                                                                  106,822                                                                  111,780
                                                                                                                                                                                                                                                                
                                                                                                ---------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
    Diluted earnings (loss) per share                                                                              $     0.49                                           $    0.21                                           $      1.98                                           $      4.26  
                                                                                                ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150518006638r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20150518006638/en/

SOURCE: Take-Two Interactive

Take-Two Interactive Software, Inc. 
Investor Relations: 
Henry A. Diamond, 646-536-3005 
Senior Vice President 
Investor Relations & Corporate Communications 
Henry.Diamond@take2games.com 
or 
Corporate Press: 
Alan Lewis, 646-536-2983 
Vice President 
Corporate Communications & Public Affairs 
Alan.Lewis@take2games.com


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