THQ disappoints with $38.4 million Q1 loss

Publisher says Red Faction: Armageddon sales didn't meet expectations, UFC: Trainer delay hurt bottom line.


It's not quite the end of the world, but disappointing sales for Red Faction: Armageddon have put a dent in the company's bottom line. THQ released its financial results for the quarter ended June 30, and it cited the Volition-developed shooter as one of a handful of factors that contributed to a net loss of $38.4 million for the company.

Armageddon didn't live up to its name or sales expectations.
Armageddon didn't live up to its name or sales expectations.

In addition to Armageddon, the blame for THQ's woes was spread between sluggish sales from its children's titles and the late release of UFC: Personal Trainer. The results were even worse than the same period the year before, when THQ reported a net loss of $30.1 million. However, sales for the three months were up, as THQ reported revenues of $195.2 million, compared to the previous first quarter's haul of $149.4 million.

While THQ is coming off a disappointing first quarter and a $136 million shortfall in its previous fiscal year, company president and CEO Brian Farrell expects the publisher to turn things around.

"Despite a light first half, we are looking forward to a strong and profitable second half, including what we expect to be the biggest third quarter, both in revenue and earnings per share, in our company's history," Ferrell said in a statement.

THQ has Warhammer 40,000: Space Marine lined up for the current quarter, with Saints Row: The Third, the Xbox 360 and PlayStation 3 uDraw tablets, WWE 12, and UFC Undisputed 3 set for launch by the March 31 end of its fiscal year.

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