Take-Two Interactive Software Earnings Call Insights: Top Games Revenue Contributions and Guidance Outlook
Top Games Revenue Contributions
Eric Handler – MKM Partners: I know you don’t like to talk about specific games, but if you could look in the aggregate what type of uplift or the overall percentage of revenue that you are getting from digital components of games like for Borderlands and BioShock and all your other top games. The contributions you are getting from those – from digital side there or maybe also the mobile uplift as well too?
Strauss Zelnick – Chairman and CEO: We don’t disclose the breakout. We do talk about the fact that digitally delivered revenue in the quarter was 27% of our net revenue. So, it’s quite meaningful. But the reason that it’s not something we cover is it is not relevant. Our view is that we should make our products available to consumers; wherever they are, however they want to receive it without regard to platforms and whether something is delivered on the disk or (indiscernible) is really a detail and should be detail for us. We want to be where the consumers are.
Ben Schachter – Macquarie Capital: Three quick questions for you; one, thank you for the guidance post to FY ’14. I’m talking about FY ’15 and beyond. I think that’s very helpful. I was wondering if you could just walk through what gives you the confidence to be able to give that guidance from now. The second question is something I don’t think we’ve talked about a lot publicly, but that’s to your cash balance. Historically, it’s never been that big. I was wondering, if you could talk about what that cash balance may look like by the end of FY ’14 and any potential plans for that cash. And then finally, the 1Q guidance relatively low especially given that BioShock had a great release wondering why the 1Q guidance might not be a little higher given potential reorders on BioShock?
Lainie Goldstein – CFO: So, Ben, in terms of the foreseeable future our outlook is based on a multi-year plan, which currently projects ongoing profitability for the Company and then in addition our development pipeline which extends that even further, gives our confident in our ability to be consistently profitable over the long time. So that’s really what that backs that number up. In terms of our cash balance we don’t share our projections or cash going forward, but we do plan to be cash positive this year, as you can see by our earnings. In terms of the use of the cash, it’s really in line with how we look at our cash balance now and we look for opportunities for acquisitions investing in our current pipeline or other titles that makes sense for us, as well as in Asia some of our online title there. Then we also will look to do, we announced the share repurchase, and if that makes sense for us we definitely would do that as well.
Ben Schachter – Macquarie Capital: Just the Q1 guide because it seems a little bit low relative to how strong the quarter ended and particularly with BioShock, wondering why Q1 guidance couldn’t be higher given potential for BioShock reorders and some other things that are going on in the quarter?
Lainie Goldstein – CFO: We definitely do have BioShock reorders scheduled for the quarter and the lifetime units for that title we have increased our expectations for that. But we also have no major new title for leasing during the quarter. So a lot of the revenue with some are catalog, which has lower margins and we also have some significant marketing cost for some future releases as well as for some already released tittles in the quarter.
A Closer Look: Take-Two Interactive Software Earnings Cheat Sheet>>