Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Technology

Tuesday, June 24, 2008

2K Sports Serves Top Spin 3 into Stores

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Comtex

NEW YORK, Jun 24, 2008 (BUSINESS WIRE) ----2K Sports, the sports publishing label of Take-Two Interactive Software, Inc. (NASDAQ: TTWO), announced today that Top Spin 3 is now available in stores in North America for the Xbox 360(R) video game and entertainment system from Microsoft, PLAYSTATION(R)3 computer entertainment system, Wii(TM) home video game system from Nintendo, and Nintendo DS(TM). Developed by 2K's PAM Development studio, Top Spin 3 offers players the most authentic and true-to-life video game tennis experience available on consoles and handhelds.

"We are extremely proud of Top Spin 3 and are confident that the intense gameplay, cutting-edge visuals and endless customization options will exceed players' expectations," said Christoph Hartmann, president of 2K.

Top Spin 3 features stunning graphics and revolutionary gameplay that contains innovative new controls, Signature Style(TM), and expansive online offerings, and gives players control over a wide selection of current top ranked tennis pros like Andy Roddick, Roger Federer and Maria Sharapova, as well as legendary* players Boris Becker, Bjorn Borg and Monica Seles. An incredibly deep player creator system provides fans with complete control over every aspect of their character with a new freeform face sculpting editor, and customizable swing animations, hairstyles, makeup, tattoos and grunts.

Top Spin 3 offers a wide variety of gameplay and features, including situation-specific behaviors, revamped audio with enhanced crowd reaction, and precise controls that fans can easily pick up and play while still providing the most genuine tennis experience possible. All-new Evolutionary Visuals(TM) showcase the intensity of the game as players sweat, demonstrate fatigue and accumulate grass and clay stains on their clothing over the course of a match, while competing at courts that have dynamic weather changes. Competitive players will also be able to create matches online and test their skills against friends or other ranked players around the world via singles or doubles in Exhibition, Custom, or World Tour Matches.

For more information, log onto www.topspin3thegame.com

Top Spin 3 is rated E for Everyone by the ESRB and is available for the Xbox 360, PLAYSTATION 3 system, Wii, and Nintendo DS.

* Legends not available on all platforms

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a global developer, marketer, distributor and publisher of interactive entertainment software games for the PC, PLAYSTATION(R)3 and PlayStation(R)2 computer entertainment systems, PSP(R) (PlayStation(R)Portable) system, Xbox 360(R) and Xbox(R) video game and entertainment systems from Microsoft, Wii(TM), Nintendo GameCube(TM), Nintendo DS(TM) and Game Boy(R) Advance. The Company publishes and develops products through its wholly owned labels Rockstar Games, 2K Games, 2K Sports and 2K Play, and distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. Take-Two's common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at www.take2games.com.

All trademarks and copyrights contained herein are the property of their respective holders.

Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks of the Microsoft group of companies.

"PlayStation", "PLAYSTATION" and "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc.

Important Legal Information

In connection with the tender offer commenced by Electronic Arts Inc., the Company has filed with the Securities Exchange Commission a Solicitation/Recommendation Statement on Schedule 14D-9. The Company's stockholders should read carefully the Solicitation/Recommendation Statement on Schedule 14D-9 (including any amendments or supplements thereto) prior to making any decisions with respect to Electronic Arts' tender offer because it contains important information. Free copies of the Solicitation/Recommendation Statement on Schedule 14D-9 and the related amendments or supplements thereto that the Company has filed with the SEC are available at the SEC's website at www.sec.gov. This communication does not constitute an offer to sell or invitation to purchase any securities or the solicitation of an offer to buy any securities, pursuant to Electronic Arts' tender offer or otherwise.

This press release may contain forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include the matters relating to the Special Committee's investigation of the Company's stock option grants and the restatement of our consolidated financial statements. The investigation and conclusions of the Special Committee may result in claims and proceedings relating to such matters, including previously disclosed shareholder and derivative litigation and actions by the Securities and Exchange Commission and/or other governmental agencies and negative tax or other implications for the Company resulting from any accounting adjustments or other factors. Further risks and uncertainties associated with Electronic Arts' tender offer to acquire the Company's outstanding shares are as follows: the risk that key employees may pursue other employment opportunities due to concerns as to their employment security with the Company; the risk that the acquisition proposal will make it more difficult for the Company to execute its strategic plan and pursue other strategic opportunities; the risk that the future trading price of our common stock is likely to be volatile and could be subject to wide price fluctuations; and the risk that stockholder litigation in connection with Electronic Arts' tender offer, or otherwise, may result in significant costs of defense, indemnification and liability. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2007, in the section entitled "Risk Factors," as updated in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2008, in the section entitled "Risk Factors." All forward-looking statements are qualified by these cautionary statements and are made only as of the date they are made.

SOURCE: Take-Two Interactive Software, Inc.

2K Sports Charlie
   Sinhaseni, 415-507-7586 charlie.sinhaseni@2kgames.com or Take-Two Interactive Software, Inc. Meg Maise, 646-536-2932 meg.maise@take2games.com
   or Access Communications for 2K Sports Jennifer Campbell, 415-844-6255 jcampbell@accesspr.com