When Take-Two Interactive Software Inc. announced in July that it had delayed the release of “Grand Theft Auto IV” until early next year due to technical issues, analysts cried foul and the stock tumbled to $12 a share from more than $20.

The news is not all bad for the video game designer, as the New York City-based company yesterday posted better results for its third fiscal quarter than the period last year. It posted a net loss of $58.5 million, or $0.81 a share, versus its 2006 third-quarter net loss of $91.4 million, or $1.29 a share. Company officials and investors are pinning their hopes on stronger videogame releases set for later this year and in early 2008. One of the biggest releases is “Bio-Shock,” scheduled to be released here later this month. The game has already sold 1.5 million copies worldwide.

“We have a strong release schedule for ’08,” the company’s chief executive officer, Ben Feder, said during a conference call with investors yesterday afternoon. “We are looking forward to our 2007 holiday lineup, as well as our solid 2008 slate, which includes the release of ‘Grand Theft Auto IV’ in our fiscal 2008 second quarter.” The earnings announcement came after the end of regular trading yesterday, which had Take-Two’s stock up 36 cents to $15.75 a share. Electronic trading after hours showed the stock up 77 cents to $16.52.

The company, whose popular “Grand Theft Auto” series has courted controversy for the rampaging violence of its Liberty City — a fictional locale largely modeled after Manhattan — also announced it had established a new label that is focused on casual and family-friendly gaming. As part of that push, it has entered into an agreement with the Nickelodeon cable television network to develop video games based on the channel’s educational programming, such as “Dora the Explorer” and “Go, Diego, Go!”

Although pressed by analysts, Take-Two officials released no further details on the deal during the conference call other than to say they were looking forward to a successful relationship with Nickelodeon.

The third-quarter announcement comes just a few days after Take–Two made public the sale of its video game accessories branch, Joytech, to Mad Catz Interactive of San Diego for $3.7 million.

The sale did not affect the quarterly results released yesterday, and Take-Two said the sale reflected its previously announced plans to divest itself of non-core businesses.