* Q2 loss ex-items 37 cts vs Street loss est 48 cts
* Q2 adjusted revenue $100.4 mln
* Sees second-half net sales similar to a year ago
* Shares up 10.6 pct after hours (Adds CEO comment, fresh share price)
By Gabriel Madway
SAN FRANCISCO, Nov 4 (Reuters) – Video game publisher THQ
Inc (THQI.O) reported better-than-expected quarterly results on
cost cuts and the strength of catalog title sales, and its
shares rose 10.6 percent in extended trading on Wednesday .
Analyst expectations were low for the publisher of the
“Saints Row” and “Red Faction” franchises heading into the
company’s fiscal second-quarter results, because no major game
releases were on the calendar.
With the critical holiday selling season at hand, the video
game industry as a whole is facing head winds. Despite recent
price cuts on gaming consoles, recession-weary consumers have
so far proved reluctant to shell out their entertainment
dollars for software.
THQ lowered its full-year outlook for the game software
industry. It now expects 2009 sales to be down low- to
mid-single digits, versus its previous flat forecast.
“We expect a cautious consumer and retail environment this
holiday, with limited visibility, as we expect many consumers
to wait until late in the season to make their gift purchases,”
Chief Executive Brian Farrell said on a conference call with
analysts.
“We expect retailers to place conservative opening orders
and to replenish products that are selling through.”
|
He said THQ, which has undergone a recent restructuring as
it reduces expenses, continues to focus on developing a smaller
number of hit games.
The company forecast fiscal 2010 second-half net sales
similar to the second half of last year, with third quarter
sales off roughly 5 to 10 percent year-over-year, and stronger
fourth quarter sales than a year ago.
THQ also said it still expects fiscal 2010 net sales to
grow, and to achieve profitability on a non-GAAP basis for the
year.
MKM Partners analysts Eric Handler noted that the company’s
guidance for the year was essentially unchanged, and he called
the after-hours share rise a bit of a relief rally for a stock
that’s been struggling of late.
THQ shares are up around 19 percent this year but down
roughly 25 percent since the start of October. Continued…
View article on single page
* Q2 loss ex-items 37 cts vs Street loss est 48 cts
* Q2 adjusted revenue $100.4 mln
* Sees second-half net sales similar to a year ago
* Shares up 10.6 pct after hours (Adds CEO comment, fresh share price)
By Gabriel Madway
SAN FRANCISCO, Nov 4 (Reuters) – Video game publisher THQ
Inc (THQI.O) reported better-than-expected quarterly results on
cost cuts and the strength of catalog title sales, and its
shares rose 10.6 percent in extended trading on Wednesday .
Analyst expectations were low for the publisher of the
“Saints Row” and “Red Faction” franchises heading into the
company’s fiscal second-quarter results, because no major game
releases were on the calendar.
With the critical holiday selling season at hand, the video
game industry as a whole is facing head winds. Despite recent
price cuts on gaming consoles, recession-weary consumers have
so far proved reluctant to shell out their entertainment
dollars for software.
THQ lowered its full-year outlook for the game software
industry. It now expects 2009 sales to be down low- to
mid-single digits, versus its previous flat forecast.
“We expect a cautious consumer and retail environment this
holiday, with limited visibility, as we expect many consumers
to wait until late in the season to make their gift purchases,”
Chief Executive Brian Farrell said on a conference call with
analysts.
“We expect retailers to place conservative opening orders
and to replenish products that are selling through.”
He said THQ, which has undergone a recent restructuring as
it reduces expenses, continues to focus on developing a smaller
number of hit games.
The company forecast fiscal 2010 second-half net sales
similar to the second half of last year, with third quarter
sales off roughly 5 to 10 percent year-over-year, and stronger
fourth quarter sales than a year ago.
THQ also said it still expects fiscal 2010 net sales to
grow, and to achieve profitability on a non-GAAP basis for the
year.
MKM Partners analysts Eric Handler noted that the company’s
guidance for the year was essentially unchanged, and he called
the after-hours share rise a bit of a relief rally for a stock
that’s been struggling of late.
THQ shares are up around 19 percent this year but down
roughly 25 percent since the start of October. Continued…
View article on single page
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