Take-Two tops forecasts, but delays 2 titles

By Gabriel Madway

SAN FRANCISCO (Reuters) - Video game publisher Take-Two Interactive Inc (TTWO.O) reported stronger-than-expected quarterly results but cut its fiscal year revenue forecast as it delays the release of two titles.

The company said it will delay "Red Dead Redemption" and "Mafia II" from the fourth quarter into the first half of fiscal 2010, and will continue to look a various ways to cut costs.

Shares of Take-Two were little changed in extended trading on Tuesday after initially falling nearly two percent.

With a light release schedule for the third quarter, Take-Two said the fiscal year's performance will be strongly weighted to the fourth quarter, which will see the launch of "Grand Theft Auto: Episodes from Liberty City" on the Xbox 360.

Wedbush Morgan analyst Michael Pachter said the company is still aiming to prove that it can serve up new hit games outside of its big-name franchise.

"I think what you really care about is that these guys really are building a portfolio, so that maybe they add more franchises besides "Grand Theft Auto" ... on balance I like what they're doing."

The company said it swung to net loss of $10.1 million, or 13 cents a share, in the fiscal second quarter ended April 30 from a profit of $98.2 million, or $1.29 a share, in the year-ago period.

Excluding items, Take-Two lost 4 cents a share, better than analysts' average estimate for a loss of 14 cents a share, according to Reuters Estimates.