THQ reports $9.3 million Q1 2008 loss

via Games Industry


THQ has announced its fiscal 2008 Q1 results, reporting a net loss of USD 9.3 million.

The loss per share of USD 0.14 included stock-based compensation expenses of USD 0.05 per share, and a tax benefit of USD 0.10 per share related to prior years that will not change the company's expected full-year tax rate.

Net sales for the first quarter were USD 104.5 million, led by Disney/Pixar's Ratatouille and catalog sales of Disney/Pixar's Cars and WWE Smackdown vs. Raw 2007. Sales were down USD 34 million from the same period last year.

"Fiscal 2008 is shaping up as we anticipated," said Brian Farrell, THQ president and CEO. "Ratatouille is off to a successful start in North America. With five titles based on owned intellectual properties expected to ship more than one million units each and a proven family and casual line-up for the popular Nintendo Wii and DS platforms, we are well positioned for the rest of the year."

For the second quarter of fiscal 2008, the company expects net sales of approximately USD 240 million and net income of approximately USD 0.10 per diluted share, excluding forecasted stock-based compensation expense of USD 0.07 per diluted share.

Along with the previously announced Stuntman, Frontline, MX vs. ATV, Juiced, and Destroy all Human games, THQ announced a new game in the Red Faction series as well as a game based on the upcoming Disney/Pixar film WALL*E.

THQ recently announced an agreement with Chinese game operator Shanda Interactive Entertainment Ltd. to bring the company's PC title Company of Heroes to the online market in China in calendar year 2008.

A loss isn't so bad when a company like THQ are already running from a profit with all the franchised games they release yearly, but that much at Q1 of 2008 is kind've looking bad as we are currently still in Q3 of 2007 but if they can see their losses of that much in advance then they're well behind in their game and need to step up.