THQ Releases Q1 Financial Results
PRESS RELEASE posted on 31 JUL 2008 by Jim Zabek
THQ has released its first quarter financial results. A partial reading of that release follows.
THQ Inc. (NASDAQ: THQI) today announced financial results for the fiscal first quarter ended June 30, 2008, and updated its financial outlook for the fiscal year ending March 31, 2009.
For the three months ended June 30, 2008, THQ reported net sales of $137.6 million, compared with $104.5 million in the prior year. On a non-GAAP basis, the company reported fiscal 2009 first quarter net sales of $121.1 million, which excludes the effects of deferred revenue. First quarter sales were driven by newly released games based on Disney/Pixar’s WALL-E and a new original Wii title Big Beach Sports™, as well as continued strong sales of WWE® SmackDown® vs. Raw® 2008 and MX vs. ATV™ Untamed™.
For the three months ended June 30, 2008, the company reported a net loss of $27.2 million, or $0.41 per share, which included a $0.03 per share gain on discontinued operations from the sale of Minick AG. In the prior year, the company reported a net loss of $9.3 million, or $0.14 per share, which included a $0.10 per share one-time tax benefit. On a non-GAAP basis, excluding stock-based compensation, the effects of deferred revenue and costs, and business realignment expenses, the company reported a fiscal 2009 first quarter net loss of $25.4 million, or $0.38 per share. In the same quarter a year ago, the company reported a non-GAAP net loss of $6.2 million, or $0.09 per share, which included a $0.10 per share one-time tax benefit and excluded stock-based compensation.
A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.
“We continued to make progress against our key initiatives during the first quarter,” said Brian Farrell, THQ president and CEO. “We are beginning to roll out a strong slate of games for the year, including a balance of both owned intellectual properties and major licenses. We are making important improvements in our creative development organization, which we believe will increase our product quality and competitiveness. During the quarter, we also took steps to re-align our cost structure and we remain on track to generate improved operating leverage. We are focused on generating growth at both the top and bottom line, and delivering improved value for our shareholders.”
“Our fiscal 2009 product line-up and long-term product pipeline are well-positioned to take advantage of the expanding demographic of gamers on the growing installed base of game platforms,” said Farrell. “We have a robust product slate of key titles scheduled to launch in each of the next several quarters, starting with de Blob in September; Saints Row 2 and WWE SmackDown vs. Raw 2009 in the holiday quarter; Red Faction Guerrilla, Darksiders: Wrath of War and WWE Legends of Wrestlemania in our fiscal fourth quarter; and UFC 2009 Undisputed in the first quarter of fiscal 2010.”
Fiscal 2009 Guidance
THQ issued initial guidance for the fiscal second quarter ending September 30, 2008, and updated its guidance for the fiscal year ending March 31, 2009, which excludes the effects of deferred revenue and costs, stock-based compensation and business realignment expenses, as follows:
* For the fiscal year ending March 31, 2009, THQ expects net sales in the range of $1,150 million to $1,175 million and earnings per diluted share in the range of $0.80 to $0.90.
* For the fiscal second quarter ending September 30, 2008, THQ expects to report net sales in the range of $160 million to $170 million and a net loss per share in the range of $0.35 to $0.39.
Fiscal 2009 First Quarter Highlights and Recent Developments:
* During the quarter, the company strengthened its portfolio of licensed franchises with the addition of new relationships with Marvel Entertainment and DreamWorks Animation.
Pursuant to the multi-year agreement with Marvel Entertainment, THQ has obtained the exclusive, worldwide rights to publish games based on Marvel Super Hero Squad.
The company has also obtained the exclusive rights to publish games based on DreamWorks Animation’s calendar 2010 feature film, “Master Mind” (working title).
* During the fiscal first quarter, THQ shipped more than one million units of games based on Disney/Pixar’s WALL-E.
* In June, THQ unveiled UFC® 2009: Undisputed, the first title under its long-term agreement with the fast growing Ultimate Fighting Championship®.
* THQ demonstrated several of its upcoming releases at the recent E3 Media and Business Summit where many of the company’s games won critical recognition, including deBlob™, Deadly Creatures™, Warhammer® 40,000™: Dawn of War™ II, UFC® 2009 Undisputed and others.
Featured Site
Name of Site