THQ posts $47 million loss
WWE and UFC publisher's shortfall in line with guidance; maintains forecast for the coming fiscal year.
Following Sony, Microsoft, Nintendo, Capcom, Sega Sammy, Square Enix and Electronic Arts, THQ has become the latest game publisher to report earnings for the quarter ending September 30, 2010. The three month period saw the suburban Los Angeles-based publisher take a loss of $47.0 million ($0.69 per share), up from a $5.6 million loss during the same period in 2009. Revenue was also down, falling to $77.1 million from $101.3 million the year prior.
One reason for the lowered income was a lack of THQ releases during the quarter, which saw UFC 2010 Undisputed for the PSP and Darksiders for the PC ship. In fact, in its earnings announcement, the company did not name-check any releases during the period, instead drawing attention to current-quarter releases, such as WWE SmackDown vs. Raw 2011 and the new uDraw GameTablet. It also called out January-March 2011 titles, such as Homefront, WWE All Stars, de Blob 2, and the motion-sensing UFC Personal Trainer.
For the full fiscal year ending March 31, 2011, THQ expects revenues of $825 million-$855 million and a loss of $0.10-$0.20 per share for the full year, excluding one-time charges, such as restructuring costs, acquisition expenses, and stock-related compensation.
THQ also said its focus this fiscal year was to "position the company for growth" during its next fiscal year, which starts April 1, 2011. That will see the release of such high-profile titles as Saints Row 3, Red Faction Armageddon, and Warhammer 40,000: Space Marine. It will also see former Assassin's Creed creative director Patrice Desilets join THQ's recently announced Montreal shop to form a new internal studio.
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