Revenue during the quarter grew 21.09 percent to $420.17 million from $346.97 million in the previous year period. Gross margin for the quarter contracted 745 basis points over the previous year period to 51.07 percent. Total expenses were 88.77 percent of quarterly revenues, up from 80.85 percent for the same period last year. That has resulted in a contraction of 791 basis points in operating margin to 11.23 percent.

Operating income for the quarter was $47.19 million, compared with $66.43 million in the previous year period.

However, the adjusted operating income for the quarter stood at $65.43 million compared to $82.75 million in the prior year period. At the same time, adjusted operating margin contracted 828 basis points in the quarter to 15.57 percent from 23.85 percent in the last year period.

"Take Two's business continued to outperform during the second quarter, enabling us to deliver strong net revenue and better than expected bookings growth," said Strauss Zelnick, chairman and chief executive officer of Take Two. "Our outstanding results were highlighted by the series' record breaking launch of NBA 2K17, ongoing robust demand for Grand Theft Auto V, and increased recurrent consumer spending, including year over year bookings growth from Grand Theft Auto Online."

For financial year 2017, Take Two Interactive Software, Inc. projects revenue to be in the range of $1,750 million to $1,850 million. It expects net income to be in the range of $180 million to $213 million. It forecasts adjusted net income to be in the range of $226 million to $255 million. It forecasts diluted earnings per share to be in the range of $1.80 to $2.09. It forecasts diluted earnings per share to be in the range of $2 to $2.25 on adjusted basis for the same period.

For the third-quarter, Take Two Interactive Software, Inc. projects revenue to be in the range of $475 million to $525 million. It expects net income to be in the range of $17 million to $30 million. It forecasts adjusted net income to be in the range of $34 million to $45 million. It forecasts diluted earnings per share to be in the range of $0.18 to $0.32. It forecasts diluted earnings per share to be in the range of $0.30 to $0.40 on an adjusted basis for the same period.

Cash flow from investing activities was $55.86 million for the first half as against cash outgo of $193.18 million in the last year period.

The company has spent $29.48 million cash to carry out financing activities during the first six months as against cash outgo of $27.41 million in the last year period.

Cash and cash equivalents stood at $770 million as on Sep. 30, 2016, up 8.19 percent or $58.29 million from $711.71 million on Sep. 30, 2015.

Working capital declines
Take Two Interactive Software, Inc. has witnessed a decline in the working capital over the last year. It stood at $651.54 million as at Sep. 30, 2016, down 13.21 percent or $99.19 million from $750.72 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, down from 1.62 on Sep. 30, 2015.

Cash conversion cycle (CCC) has increased to 34 days for the quarter from 29 days for the last year period. Days sales outstanding went up to 56 days for the quarter compared with 49 days for the same period last year.

Days inventory outstanding has increased to 17 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding went up to 39 days for the quarter from 32 for the same period last year.