Despite a dip in revenue, the SmackDown! and Saints Row publisher cuts April-June shortfall to $9.3 million, reaffirms $1.15 billion full-year guidance, reconfirms new Red Faction.
When is a loss not a loss? Technically, never. However, when a company beats its own expectations by losing less money, it is considered a win of sorts, as THQ found out today. This morning, the Agoura Hills, California-based publisher posted a $9.3 million net loss ($0.14 cents a share) for the quarter months ending June 30. That's down from the $12.1 million ($0.19 per share) it lost during the same three months in 2006, and nearly half the $0.26 per share loss the company itself predicted.
THQ's net sales for the quarter were $104.5 million, down considerably from $138.8 million the previous year. The publisher's licensing deal with Disney/Pixar continued to pay off, with the multiplatform tie-in to the blockbuster film Ratatouille shipping over 1 million units since its June 26 release. Another Pixar-inspired game, last year's Cars, also sold well during the quarter, as the wrestler SmackDown! vs. RAW 2007
THQ's brief earnings overview emphasized the company was sticking with its guidance for the 2008 fiscal year. When the current quarter ends, the company believes it will have taken in net sales of around $240 million and net income of approximately $0.10 per share.
For the full fiscal year, which ends on March 31, 2008, the publisher expects net sales of between $1.12 billion to $1.15 billion and net income between $1.34 to $1.44 per share. In a postreport conference call, THQ president and CEO Brian J. Farrell told analysts that he expects five internally developed multiplatform titles to sell over 1 million units during FY08: Frontlines: Fuel of War, Stuntman Ignition, MX vs. ATV Untamed, Juiced 2: Hot Import Nights, and the latest Destroy All Humans! game.
Farrell also dated the highly anticipated Stuntman Ignition would ship on August 28 and the console actioner Conan would arrive earlier than expected in October. MX vs. ATV Untamed also moved ahead, shifting from a January to December release. In addition, he reconfirmed that THQ is resurrecting its popular Red Faction series, a fact first revealed back in February.
Unfortunately, THQ's optimism was not infectious on Wall Street. The publisher's stock was clobbered on Wall Street in early-morning trading, losing as much as $1.56 per share, or over 5 percent of its value. As of press time, it was trading at around $27.25 per share.
I DONT KNOW HOW THEY CAN LOSE MONEY THQ game are very enjoyable. Its not frustrating difficult like many other developer trying to make
I played Destory All Human's 1 and 2 and i think this will be way funnier then 1 and 2. Hope you can gets new power's and weapon's!
I agree with Agreb91 THQ has a lot out movie and tv show based games but there are some that are like dimonds in the ruff like company of Heroes and Supreme commander.
bigmouthkid said:I couldn't care less for Saints Row and Red Faction. I just want my Smackdown vs. Raw 2008. he** yeah
I remember once in red faction 1, there was this maze thing where you had to go through a door, through a room, and through another door. I just blew a hole in the wall to my left and kept "digging" through until i was past the last door. So awesome.
Red Faction 1 was an awesome game, anyone remember how innovative it was supposed to be with destructable surrondings? didn't quite fit the bill but was still amazing.
I want to see more Warhammer 40K from THQ, a PS3 and X360 port is long overdue for Dawn of War and its expansions.
More Red Faction PLEASE! I just can't wait to see what can be done with all the new technology and the games design.
Red Faction 2 was great, I don't know what you're talking about. I sure hope the next one isn't bad, I really loved the series, a really interesting game. I loved being able to destroy the environments, and being able to blast through walls XD.
To be honest, in order for people to get excited in another FPS (after so many quality shooter showing at E3), Red Faction has to be announced for the Wii, or it will be buried in the mountain of FPSs out there. So many Wii owner are dying for a "good" (not all the crappy ones) FPS, and the Wii seems to be created for FPS, yet no developer is make one exclusive for the Wii. Just look at Red Steel, even with its crappy reviews it still sell like hotcakes. Imagine announcing an established quality IP FPS exclusive on the Wii - people will be all talking about it. Even if they can make Red Faction 3 as beautiful as Call of Duty 4, it will still sell average at best as there are Killzone 2, Unreal Tournament 3, Halo 3, Bioshock, Fear 2, Crysis, Orange Box etc waiting to be played. Some quality casualties I expected this year will be Medal of Honor Airborne, Turok and Haze.... yet the Wii has a huge open market for FPS but without a single one.
"Sometimes is better to have a company that deals with billions with a little loss, than one that deals with millions with a little profit." Sound words.
Yes a new red faction the first was an awesome game for its time it was kind of like half life+black very cool game. And we need a console version of S.T.A.L.K.E.R. sweet game that console gamers deserve to play. And does anybody remember the FUSION ROCKET LAUNCHER!! probably one of the coolest weapons ever it was like a nuke rocket launcher simply amazing.
red faction one was amazing! being able to shoot my way through a wall to cut through a level if i wanted. i mean game was amazing! red faction two was just not as fun. it was so mcuh less destructable than the first i did nto even play past the first boss. I dont care about a cut in graphics if they go back to where you dotn need keys if you dont want to find them! you just blow a hole in the door and move on! that is worth a cut in graphics!
Some of those release dates are mighty close to some other big names.. me thinks they might sell a little less than they expect. But I don't want to see anyone do too badly so.. here's hoping they turn a profit next quarter
Red faction did amazing things for the generation it was in. Imagine the crazy things they'll pull off in this current gen! Saints Row 2 will be another great hit
allthough a loss is allways a loss, cash-flow is a good thing. Sometimes is better to have a company that deals with billions with a little loss, than one that deals with millions with a little profit.
THQ makes lots of fun games! how could it be that they'r in the red? what are these guys doing with the money???
get the original S.T.A.L.K.E.R. dev team back and give them time to finish the game and release it for consoles. I'll buy two copies if you do so!!
Yay Red Faction! Keep the difficulty of the last two games do not make it easy like most games today are....
it's a shame about the loss .. but i want to know more about Red Faction 3 can we track this game now here on gamespot..??
Ratatouille and Cars were suprisingly fun games. Maybe if THQ makes all their Pixar-games fun, they'll even make a profit?
I loved the old Red Faction, both 1 and 2! I am definitely looking forward to Red Faction 3. Hopefully it will have an awesome multiplayer.
please bring back red faction, that game as ahead of its time... red faction 3 with next gen graphics,plus physics,plus geo-mod= one bad ass awesome shooter that will allow you to blow up anything !! thq does us a favor and bring back red faction sooner than later.
Avalanche Studios co-founder says developer's ambition is for action, not moments that make players cry; steampunk-style game on hold. Full Story
- Posted May 15, 2013 6:33 am PT
4A Games creative director Andrew Prokhorov thanks Jason Rubin for telling the studio's story, but says, "We deserve the ratings we get." Full Story
- Posted May 16, 2013 12:44 pm PT