By Jennifer Martinez
SAN FRANCISCO (Reuters) - U.S. video games publisher Take-Two Interactive Software Inc
Take-Two Chairman Strauss Zelnick told Reuters the company "witnessed significant softness" in store sales. That was a shock for investors after total video game U.S. sales rose 10 percent in November, which had suggested the industry was weathering the downturn better than most.
Take-Two, best known for its "Grand Theft Auto" franchise, expects profit for the year ending in October 2009 to range between nil and 20 cents per share, significantly missing the average analysts' estimate of $1.21 per share.
The company forecast first-quarter revenue to range between $175 million to $225 million, missing Wall Street estimates of $311 million on Reuters Estimates.
The company said its net loss for the fourth quarter ended October 31 was $15 million, or 20 cents a share, compared with a loss of $7.1 million, or 10 cents a share, a year ago.
Excluding stock-based compensation expenses, expenses related to unusual legal matters and business reorganization costs, New York-based Take-Two earned a fourth-quarter profit of 2 cents per share, missing the average Wall Street estimate of 4 cents profit, according to Reuters Estimates.
Take-Two forecast an adjusted first-quarter loss ranging between 70 cents and 85 cents, sharply missing the average analysts' estimate of 4 cents, according to Reuters Estimates.
Chief Executive Ben Feder called the forecasts "a prudent response to the difficult current and possible future business conditions."
Shares of Take-Two fell to $9.65 in extended trade on the Nasdaq.
(Reporting by Jennifer Martinez and Peter Henderson)
