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Finance

THQ reports $35.3 million loss

Tue 06 May 2008 9:27pm GMT / 5:27pm EDT / 2:27pm PDT
Finance

THQ has announced results for the fourth quarter and full fiscal year - both showing a loss in the $35 million range

THQ has announced financial results for the fourth quarter and fiscal year ended March 31, 2008, reporting a net loss of USD 34.5 and USD 35.3 million, respectively.

Net sales for the fiscal year were USD 1,030.5 million, up from USD 1,026.9 million the prior year - the thirteenth consecutive year of revenue growth according to the company.

For the fourth quarter of fiscal 2008, THQ reported net sales of USD 187.0 million - up from USD 172.1 million from the prior year and in excess of prior guidance.

Q4 sales were led by Frontlines: Fuel of War, MX vs. ATV Untamed and WWE SmackDown vs. Raw 2008. THQ experienced weaker-than-expected sell through of some of its previously released titles, however.

As a result, the company reported a net loss of USD 34.5 million, or USD 0.52 per share, for the fourth quarter. For the same period of the prior year, THQ reported net income of USD 6.5 million.

"In fiscal 2008, we did not achieve our revenue and profit targets and we are taking aggressive steps to ensure that we significantly improve execution in fiscal 2009 and beyond," said THQ president and CEO Brian Farrell.

"Going forward, we are focused on three key initiatives. We are rolling out a stronger slate of products. We have put in place and are executing against initiatives to improve our product quality and competitiveness. We are also realigning our cost structure to generate significant operating leverage in fiscal 2009.

"We believe these initiatives will restore profitable growth and improve value for shareholders."

THQ expects fiscal year 2009 net sales in the range of approximately USD 1,175 - USD 1,200 million and operating margins in the high single digits, resulting in earnings per diluted share in the range of approximately USD 0.95 - 1.05.

For the first quarter ending June 30, 2008, THQ expects to report net sales in the range of approximately USD 115 - 125 million and a net loss per share in the range of approximately USD 0.38 - 0.42.

The company also announced a partnership with DreamWorks Animation to publish games based on the studio's 2010 fall animated feature film - currently under the working title of "Master Mind."

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