THQ hits savings targets
Publisher cuts $220 million from fiscal 2010 spending in line with plans
THQ has announced that it has succeeded in hitting planned savings targets for its fiscal 2010 year, to the tune of USD 220 million.
The publisher, which has had to execute the cost-cutting measures following concern over its performance, stated last year that it would cut 250 staff positions, close studios and cancel some titles.
But earlier this year the total staff posts axed rose to 600 as the company posted higher-than-expected losses, with the entire International office closed. Earlier today details of lay-offs at Big Huge Games were confirmed.
However, those measures seem to have proven sufficient, and the company is confident that it can return to profitability.
"We have executed on our previously announced business realignment actions," said Brian Farrell, THQ president and CEO. "Our goal is to return to profitability and generate positive cash flow in fiscal 2010, and to position THQ for long-term sustainable and profitable growth.
"We are confident in achieving these goals based on our focus on key market opportunities, our robust franchise portfolio and our dedicated and talented employee base," he added. "We look forward to demonstrating success with our upcoming fiscal 2010 releases, including UFC 2009: Undisputed, Red Faction Guerrilla and Darksiders."
Business realignment costs are expected to total around USD 45 million in the company's fiscal fourth quarter, with an additional USD 10 million of costs expected in fiscal 2010.
THQ's share price rose by over 5 per cent yesterday to sit at USD 3.20 at close, up from an annual low of USD 2.23, but down from a high in the same period of USD 23.40.