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THQ lowers Q2 fiscal guidance

THQ has announced updated guidance for its second quarter and fiscal year reflecting lower than anticipated sales of two releases and the decision to move three titles to 2009

THQ has announced updated guidance for its second quarter and fiscal year reflecting lower than anticipated sales of two releases and the decision to move three titles to 2009.

The company now expects Q2 net sales of approximately USD 229 million and a GAAP net loss of approximately USD 0.11 per share, which includes USD 0.08 per share of stock-based compensation expense.

The revised expectation reflects lower than anticipated shipments of Stuntman: Ignition and Juiced 2: Hot Import Nights, as well as higher than expected price protection for these titles.

"We are disappointed that our latest editions of Juiced and Stuntman did not perform to expectations," said Brian Farrell, president and CEO of THQ.

For Q3, THQ expects to report net sales of approximately USD 490 million and GAAP earnings per diluted share of approximately USD 0.61, including USD 0.06 per diluted share of stock-based compensation expense.

For Q4, ending March 31, 2008, the company expects to report net sales of approximately USD 240 million and GAAP earnings per diluted share of approximately USD 0.19.

Fourth quarter results reflects THQ's decision to release Destroy All Humans!: Path of the Furon, Frontlines: Fuel of War, and de Blob to fiscal 2009 instead of Q4 2008.

"Because of THQ's commitment to delivering quality products, we have moved the PS3 and Xbox 360 versions of Destroy All Humans, and the PS3 version of Frontlines into fiscal 2009," said Farrell. "We believe the additional time will enable us to create the best products for our customers."

"Our new title de Blob has generated strong critical acclaim and excitement among gamers," Farrell added. "We have decided to schedule this title for global release next fiscal year in order to enhance the game and maximize the opportunity for this new franchise."

THQ expects to report net sales of approximately US 1.06 billion for the fiscal year ending March 31, 2008.

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