THQ Q1 revs climb, but bottom line shows loss
[UPDATE] Publisher trims quarter-on-quarter loss by a hair as Destroy All Humans! and Juiced drive sales; still, tallies $4 million loss; S.T.A.L.K.E.R. hits new snag.
THQ reported earnings for the quarter ending June 30, 2005, today and while the top line soared, the bottom line didn't improve--last year, the company lost $3.9 million, this quarter, $4 million.
For the June quarter, million-unit shippers Destroy All Humans! and Juiced helped the company drive net sales of $158 million. That compares with $88.2 million for the same quarter a year ago. Those two games alone drove more than 50 percent of the quarter's revenues.
Today's results exceeded the company's previous guidance; it had predicted sales would come in at between $135-$140 million. Impacting the bottom line this quarter are costs and expenses that climbed compared to a year ago--from $95 million last year to $165.8 million this past quarter.
In spite of the loss, THQ boss Brian Farrell said in a statement, "Fiscal 2006 is off to a great start with the performance of two new original properties." And looking ahead, he added, "our release schedule over the next few quarters will feature such proven brands as WWE SmackDown!, SpongeBob SquarePants, The Incredibles, Full Spectrum Warrior, Tak, and Warhammer 40,000: Dawn of War."
PC fans looking to get their mitts on GSC Gameworld's S.T.A.L.K.E.R.: Shadow of Chernobyl will have to wait until April of next year, at the earliest. The oft-delayed game has met another setback, but THQ execs still have confidence in the game. "We think that's going to be a ground breaking title when we launch it and we want to make sure there's enough time in the oven for it. We want to make sure it has the absolute highest possible game quality," said Farrell. For reporting puposes, the game was bumped from THQ's Jan-Mar quarter, effective today.
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