\n| \n $ in thousands<\/i><\/p>\n<\/td>\n | | \n\n Statement of<\/b><\/p>\n operations<\/b><\/p>\n<\/td>\n | | \n\n Change in <\/b><\/p>\n deferred net <\/b><\/p>\n revenue <\/b><\/p>\n and related <\/b><\/p>\n cost of <\/b><\/p>\n goods sold<\/b><\/p>\n<\/td>\n | | \n\n Stock-based <\/b><\/p>\n compensation<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n Impact of <\/b><\/p>\n business <\/b><\/p>\n reorganization<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n Business <\/b><\/p>\n acquisition<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Amortization <\/b><\/p>\n & impairment <\/b><\/p>\n of acquired <\/b><\/p>\n intangible <\/b><\/p>\n assets<\/b><\/p>\n<\/td>\n | | \n\n Gain on <\/b><\/p>\n long-term <\/b><\/p>\n investments, net<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n Net revenue <\/b><\/p>\n<\/td>\n | | \n\n $813,346<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (101,916<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nCost of goods sold\n<\/p>\n<\/td>\n | | \n\n \n329,715\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n(8,135\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n \n(12,050\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n(11,112\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \n\u00a0\n<\/p>\n Gross profit<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n 483,631<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n (93,781<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n )<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n 12,050<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n 11,112<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nTotal operating expenses\n<\/p>\n<\/td>\n | | \n\n \n313,157\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n(37,000\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n \n(97\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n \n(2,186\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n(3,894\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n Income from operations<\/b><\/p>\n<\/td>\n | | \n\n 170,474<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (93,781<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | | \n\n 49,050<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 97<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 2,186<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 15,006<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nInterest and other, net\n<\/p>\n<\/td>\n | | \n\n \n(1,027\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n \n(610\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | <\/tr>\n \n| \n \nGain on long-term investments, net\n<\/p>\n<\/td>\n | | \n\n \n1,997\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1,997\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income before income taxes<\/b><\/p>\n<\/td>\n | | \n\n 171,444<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (94,391<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n | | \n\n 49,050<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 97<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 2,186<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n 15,006<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n | \n (1,997<\/b><\/p>\n<\/td>\n | \n )<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 117.1 million.\n<\/p>\n Operational Metric \u2013 Net Bookings<\/span><\/b><\/p>\n\nNet Bookings is defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.\n<\/p>\n \nDuring fiscal first quarter 2022, total Net Bookings declined 29% to $711.4 million, as compared to $996.2 million during last year\u2019s fiscal first quarter. Net Bookings from recurrent consumer spending declined 25% and accounted for 69% of total Net Bookings. The largest contributors to Net Bookings were Grand Theft Auto Online <\/i>and Grand Theft Auto V<\/i>; NBA 2K21 <\/i>and 2K20<\/i>; Red Dead Redemption 2<\/i> and Red Dead Online<\/i>; Borderlands 3<\/i>; the WWE<\/i> series; Dragon City; Two Dots<\/i>; Sid Meier\u2019s Civilization VI<\/i>; and Monster Legends<\/i>.\n<\/p>\n \nCatalog accounted for $652.6 million of Net Bookings led by Grand Theft Auto<\/i>, NBA 2K<\/i>, Red Dead Redemption<\/i>, Borderlands<\/i>, the WWE<\/i> series, Dragon City,<\/i>Sid Meier\u2019s Civilization <\/i>and Two Dots<\/i>.\n<\/p>\n \nDigitally-delivered Net Bookings declined 26% to $680.4 million, as compared to $924.5 million in last year\u2019s fiscal first quarter, and accounted for 96% of total Net Bookings. The largest contributors to digitally-delivered Net Bookings were Grand Theft Auto Online <\/i>and Grand Theft Auto V<\/i>; NBA 2K21<\/i> and NBA 2K20; Red Dead Redemption 2<\/i> and Red Dead Online<\/i>; Borderlands 3;<\/i> the WWE<\/i> series; Dragon City; Two Dots; Sid Meier\u2019s Civilization VI; <\/i>and Monster Legends<\/i>.\n<\/p>\n Management Comments<\/span><\/b><\/p>\n\n\u201cWe began fiscal 2022 with positive momentum, which was reflected in our ability to deliver first quarter operating results which were above our expectations,\u201d said Strauss Zelnick, Chairman and CEO of Take-Two. \u201cDuring the period, we continued to invest in our future, including growing our creative teams and expanding our mobile business and expertise further.\n<\/p>\n \n\u201cFor the year, we are reiterating our outlook, as there has been some movement in our release schedule, including two of our immersive core titles shifting to later in fiscal 2022 than contemplated by our prior guidance. As we deliver on our expansive multi-year pipeline, we believe that we will achieve sequential growth in fiscal 2023 and establish new record levels of operating results over the next few years.\n<\/p>\n \n\u201cWe remain highly optimistic about the growth potential for the interactive entertainment industry and our competitive positioning within the sector. We believe that our unique strategic advantages, together with our focus on enhancing our enterprise and capitalizing on our growth opportunities, will enable us to deliver long-term shareholder value.\u201d\n<\/p>\n COVID-19 Response<\/span><\/b><\/p>\n\nAt Take-Two, our number one priority has remained the health and safety of our employees and their families. All of our offices moved largely to work-from-home environments by mid-March 2020. As we begin to re-open many of our offices, we are strictly following protocols from local governments and health officials to ensure that we are adhering to their safety standards.\n<\/p>\n \nDue to the shelter-in-place orders that began last year, we experienced heightened levels of engagement and Net Bookings growth during our fiscal 2021 period. As the return to normalcy continues to unfold, the impact to our business, operations and financial results will depend on numerous evolving factors that we are not able to predict. The key risks to our business are set forth under the heading \u201cCautionary Note Regarding Forward-Looking Statements\u201d in this release and in Take-Two\u2019s Annual Report on Form 10-K for the fiscal year ended March 31, 2021.\n<\/p>\n Business and Product Highlights<\/span><\/b><\/p>\n\nSince April 1, 2021:\n<\/p>\n Take-Two:<\/b><\/p>\n\n- \nAcquired privately-held Nordeus for an upfront purchase price of $225 million. There is the potential for the payment of an additional earn-out consideration based upon Nordeus achieving EBITDA results above certain thresholds during each of the first two years. Founded in 2010, Nordeus is a mobile games company based in Belgrade, Serbia, best known for Top Eleven<\/i>, the world\u2019s most successful mobile soccer management game* with over 240 million registered users.\n<\/li>\n
- \nAcquired privately-held Dynamixyz, a world-class leader in video-based facial animation services. Founded in 2010 in Cesson-S\u00e9vign\u00e9, France, Dynamixyz owns and operates a suite of leading-edge, proprietary motion capture, facial-analysis, and full 3D processing tools and technology that combines computer graphics, computer vision, and machine learning. Financial details of the acquisition were not disclosed.\n<\/li>\n
- \nTake-Two was a founding donor of The Gerald A. Lawson Endowment Fund for Black and Indigenous Students, which was created with the goal of increasing those groups\u2019 representation in the gaming and tech industries. The fund provides student support for Black and Indigenous students who wish to pursue undergraduate or graduate degrees in game design or computer science from USC’s prestigious program.\n<\/li>\n<\/ul>\n
*Source: AppAnnie based upon downloads and revenue through April 2021.<\/i><\/p>\n Rockstar Games:<\/b><\/p>\n\n- \nReleased new free content updates for Grand Theft Auto Online<\/i>:<\/p>\n
\n- \nOn July 20, delivered the Los Santos Tuners<\/i> update. This massive update introduced the LS Car Meet, a new shared social space for players to get together to modify their personal vehicles, watch others modify their Tuner vehicles in real-time, race and test various vehicles on an underground test track, and much more. In addition, Los Santos Tuners<\/i> features six new robbery Contracts; six new race types; ten new highly customizable vehicles; new collectible USB sticks featuring music from Moodymann and Seth Troxler, allowing players to experience music in an all-new way, and a host of quality-of-life updates, including a new customizable radio station wheel.\n<\/li>\n
- \nEarlier in the Summer, Rockstar Games released eight new stunt races, seven new arenas for Deadline mode and regular in-game bonuses and incentives for Grand Theft Auto Online<\/i>.\n<\/li>\n<\/ul>\n<\/li>\n
- \nReleased new free content updates for Red Dead Online<\/i>:<\/p>\n
\n- \nOn July 13, released the Blood Money<\/i> update for Red Dead Online<\/i>. The update introduced a series of criminal-themed Opportunities; complex new missions, including the game’s first train robbery; and The Quick Draw Club<\/i> – a series of four distinct, rapid-fire passes featuring criminal-themed unlockable rewards, bonuses, and more.\n<\/li>\n
- \nPrior to this update, Red Dead Online<\/i> introduced eight new races spanning iconic locations across the game’s five states and a creative array of bonuses and incentives.\n<\/li>\n<\/ul>\n<\/li>\n
- \nRockstar Games and Tribeca Festival joined together for a special free live performance from The Battery featuring Red Dead Redemption 2<\/i> Original Soundtrack producer, Daniel Lanois. The performance featured special guests, D\u2019Angelo and Rhiannon Giddens.\n<\/li>\n
- \nRockstar Games teamed with CircoLoco \u2014 creators of some of the world\u2019s biggest and most influential real-world parties and one of the most recognized brands in modern dance music \u2014 to create a brand-new record label, CircoLoco Records. The label is focused on elevating the dance music culture scene through the collective power of these two entertainment brands.\n<\/li>\n<\/ul>\n
2K:<\/b><\/p>\n\n- \nUnveiled the full roster of cover athletes for NBA 2K22<\/i>, the next installment of the top-rated and top-selling NBA video game simulation series of the past 20 years. Global phenomenon and two-time NBA All-Star, Luka Don\u010di\u0107, will appear on the Standard Edition and Cross-Gen Digital Bundle, while the premium, NBA 75th Anniversary Edition will showcase NBA legends Kareem Abdul-Jabbar, Dirk Nowitzki, and Kevin Durant. In North America, players can purchase a special version of the Standard Edition featuring six-time WNBA All-Star and WNBA Champion, Candace Parker, on the cover and available exclusively through GameStop and EB Games. In Japan, players can also purchase a special version of the Standard Edition that will feature Washington Wizards Rui Hachimura, a rising star who was the first Japanese player to not only be drafted in the first round in 2019, but also to reach the NBA Playoffs. The Standard Edition will be available for $59.99 on Gen 8 consoles and $69.99 for Gen 9 consoles; the Cross-Gen Digital Bundle will be available for $79.99 and grant players access to the Standard Edition across Gen 8 and Gen 9 consoles within the same console families; and the NBA 75th Anniversary Edition will be available for $99.99 for both Gen 8 and Gen 9 consoles.\n<\/li>\n
- \nContinued to expand the breadth of NBA 2K<\/i> offerings with the launch of the NBA 2K21 Arcade Edition<\/i> on Apple Arcade, delivering an all-new basketball simulation game experience to Apple\u2019s video game subscription service, available on iPhone, iPad, Apple TV, and Mac devices.\n<\/li>\n
- \nOffered a variety of updates to NBA Supercard<\/i>, including a new card tier, as well as new modes, themes and more.\n<\/li>\n
- \nThe NBA 2K League<\/i> kicked off its fourth season on May 19, which will conclude on September 4 with the NBA 2K League<\/i> Finals delivered by DoorDash.\n<\/li>\n
- \nReleased several updates to PGA TOUR 2K21<\/i>, including a series of fan-favorite and all-new custom courses created by some of the most talented course creators in the PGA TOUR 2K<\/i> community.\n<\/li>\n
- \nNew apparel, accessory and footwear offerings were made available for PGA TOUR 2K21<\/i> through the NBA team logo gear update and the TravisMathew and PUMA golf gear update.\n<\/li>\n
- \nDuring the WrestleMania 37 broadcast on April 10, 2021, 2K and Visual Concepts revealed the first teaser video for WWE 2K22<\/i>, which will launch within our current fiscal year. In recent weeks, the teams shared a series of behind-the-scenes looks at WWE 2K22<\/i>, including entrance and move animations, motion capture and facial scanning, and more to come.\n<\/li>\n
- WWE SuperCard<\/i> offered new content updates, including a John Cena-themed in-game event in June.\n<\/li>\n
- \nAnnounced that Tiny Tina\u2019s Wonderlands<\/i>, a new franchise from 2K and Gearbox, will be released later this fiscal year. The game is an epic adventure full of whimsy, wonder, and high-powered weaponry set in an unpredictable fantasy world where magic, broadswords, and bullets collide. Tiny Tina\u2019s Wonderlands<\/i> is a full experience with a rich, story-driven co-op campaign and repeatable end-game content.\n<\/li>\n
- \nSeveral enhancements were made to Borderlands 3, <\/i>including the introduction of crossplay functionality for Xbox One, Xbox Series X|S, Mac, Stadia, and PC via Steam and the Epic Games Store. Additionally, new limited-time mini-events were introduced, which culminated in the return of the game\u2019s most popular seasonal event, \u201cRevenge of the Cartels.\u201d\n<\/li>\n
- \nReleased the Borderlands 3: Director\u2019s Cut <\/i>add-on, which is available for purchase separately and available to download for owners of Borderlands 3 Ultimate Edition<\/i> or Season Pass 2<\/i>. The Director\u2019s Cut<\/i> add-on delivered a brand-new raid boss, story-driven murder mystery missions, daily and weekly challenges with unique themed rewards, and never-before-seen behind-the-scenes content.\n<\/li>\n
- \nLaunched the Sid Meier\u2019s Civilization VI<\/i>Anthology<\/i> for Windows PC, which includes Sid Meier\u2019s Civilization VI<\/i>, all DLC packs, all expansions and the New Frontier Pass<\/i>.\n<\/li>\n<\/ul>\n
Private Division:<\/b><\/p>\n\n- \nAnnounced that, together with Roll7, it will release OlliOlli World<\/i> digitally this winter for consoles and PC. This skateboarding action-platformer marks a bold new direction in this critically acclaimed franchise and has received outstanding initial feedback from early media impressions.\n<\/li>\n
- \nAnnounced a partnership with Supergiant Games to release a physical edition of Hades<\/i> for PlayStation and Xbox consoles. Hades<\/i> is a winner of over 50 \u201cGame of the Year\u201d awards and has received impressive aggregate scores of 93 on Metacritic and 94 on OpenCritic.\n<\/li>\n
- Kerbal Space Program<\/i> recently celebrated its 10-year anniversary, with new offerings for fans, including merchandise and a documentary video detailing the various achievements of the title as well as its impact on the aerospace industry.\n<\/li>\n
- \nAnnounced that it will release Kerbal Space Program Enhanced Edition<\/i> for PlayStation 5 and Xbox Series X|S this fall. The title will benefit from multiple hardware advancements and developments which allow for an upgraded resolution, improved frame-rate, advanced shaders, better textures, and additional performance improvements. Players who already own Kerbal Space Program Enhanced Edition<\/i> for Gen 8 consoles are eligible for a free upgrade to the new version of the game upon its release.\n<\/li>\n<\/ul>\n
T2 Mobile Games:<\/b><\/p>\n\n- \nTake-Two integrated Socialpoint, Playdots, and Nordeus into newly formed \u201cT2 Mobile Games.\u201d This new structure will help Take-Two\u2019s mobile teams achieve cost synergies and share best practices.\n<\/li>\n
- \nMany of our mobile games launched new features, challenges, and marketing activations to drive player engagement. Our studios will continue to introduce new enhancements to their games this year to further optimize the player experience.\n<\/li>\n<\/ul>\n
Outlook for Fiscal 2022<\/span><\/b><\/p>\n\nTake-Two is reiterating its outlook for the fiscal year ending March 31, 2022 and providing its initial outlook for its fiscal second quarter ending September 30, 2021:\n<\/p>\n Fiscal Year Ending March 31, 2022<\/i><\/b><\/p>\n\n- \nGAAP net revenue is expected to range from $3.14 to $3.24 billion\n<\/li>\n
- \nGAAP net income is expected to range from $229 to $259 million\n<\/li>\n
- \nGAAP diluted net income per share is expected to range from $1.95 to $2.20\n<\/li>\n
- \nShare count used to calculate both GAAP and management reporting diluted net income per share is expected to be 117.4 million (1) <\/sup><\/li>\n
- \nNet cash provided by operating activities is expected to be over $380 million\n<\/li>\n
- \nAdjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $400 million (2)<\/sup><\/li>\n
- \nCapital expenditures are expected to be approximately $170 million\n<\/li>\n
- \nNet Bookings (operational metric) are expected to range from $3.2 to $3.3 billion\n<\/li>\n<\/ul>\n
\nThe Company is also providing selected data and its management reporting tax rate of 16%, which are used internally by its management and Board of Directors to adjust the Company\u2019s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:\n<\/p>\n \n\n | \n | \n\n Twelve Months Ending March 31, 2022 <\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n\n Financial Data<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n $ in millions<\/i><\/p>\n<\/td>\n | | \n\n GAAP outlook (3)<\/sup><\/b><\/p>\n<\/td>\n | \n\n Change in deferred <\/b><\/p>\n net revenue and <\/b><\/p>\n related cost of goods <\/b><\/p>\n sold<\/b><\/p>\n<\/td>\n | | \n\n Stock-based <\/b><\/p>\n compensation <\/b><\/p>\n<\/td>\n | | \n\n Gain on long <\/b><\/p>\n term <\/b><\/p>\n investments, <\/b><\/p>\n net<\/b><\/p>\n<\/td>\n | | \n\n Amortization <\/b><\/p>\n of Intangible <\/b><\/p>\n Assets<\/b><\/p>\n<\/td>\n | | \n\n Reorganization <\/b><\/p>\n & Acquisition<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net revenue <\/b><\/p>\n<\/td>\n | | \n\n $3,140 to $3,240<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $60<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Cost of goods sold<\/b><\/p>\n<\/td>\n | | \n\n $1,399 to $1,444<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n $27<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($42) <\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($48)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating expenses<\/b><\/p>\n<\/td>\n | | \n\n $1,481 to $1,501<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($127)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($12)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($2)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Interest and other, net<\/b><\/p>\n<\/td>\n | | \n\n ($3)<\/b><\/p>\n<\/td>\n | | \n\n $1<\/b><\/p>\n<\/td>\n | | \n | \n | \n\n $2<\/b><\/p>\n<\/td>\n | | \n | \n | \n | <\/tr>\n \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income (loss) before income taxes<\/b><\/p>\n<\/td>\n | | \n\n $263 to $298<\/b><\/p>\n<\/td>\n | | \n\n $32<\/b><\/p>\n<\/td>\n | | \n\n $169<\/b><\/p>\n<\/td>\n | | \n\n ($2)<\/b><\/p>\n<\/td>\n | | \n\n $60<\/b><\/p>\n<\/td>\n | | \n\n $2<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Second Quarter Ending September 30, 2021<\/i><\/b><\/p>\n\n- \nGAAP net revenue is expected to range from $740 to $790 million\n<\/li>\n
- \nGAAP net income is expected to range from $41 to $53 million\n<\/li>\n
- \nGAAP diluted net income per share is expected to range from $0.35 to $0.45\n<\/li>\n
- \nShare count used to calculate both GAAP and management reporting diluted net income per share is expected to be 117.3 million (4)<\/sup><\/li>\n
- \nNet Bookings (operational metric) are expected to range from $815 to $865 million\n<\/li>\n<\/ul>\n
\nThe Company is also providing selected data and its management reporting tax rate of 16%, which are used internally by its management and Board of Directors to adjust the Company\u2019s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:\n<\/p>\n | | | | | | | |