Take-Two under investigation
Take-Two Interactive Software Inc. has announced that it has overstated revenues by nearly $20 million in fiscal 2000 period and stated it was being investigated by the Securities and Exchange Commission.
In a delayed annual report filed on Tuesday, Take-Two said the SEC had issued a "formal order of investigation" looking into its financial statements and accounting controls. It lowered its reported fiscal 2000 revenues to $364 million from $387 million and its fiscal 2000 earnings per share to 23 cents from 88 cents.
For 2000, the company said it had eliminated $3.8 million in net sales for unshipped products and $2.6 million in license revenue, and took a charge of $19.2 million for losses
"I think that the SEC is obligated to understand why it took so long for them to close the year," said Michael Pachter, an analyst at Wedbush Morgan Securities who covers the company.
It appears that Take-Two will be forced to undergo a great deal of paperwork in the weeks to come. The company is confident in their attempts and believe the investigation will run smoothly.
2/12/2002 Matt Stensrud