THQ reports lower 1Q revenue
Video game publisher THQ Inc. said Monday that its fiscal first-quarter revenue fell, but adjusted results beat Wall Street's expectations as the company plan to reshape its business advanced.
THQ made $15.4 million, or $2 per share, in the April-June period. That compares with a loss of $38.4 million, or $5.63 per share, in the same period a year ago.
Excluding one-time items, THQ had a loss of $3.41 per share. The company forecast a loss of $4 to $4.50 per share.
THQ's adjusted revenue, which accounts for deferred revenue for games with online components, was $38.5 million compared with $141.2 million a year ago.
Analysts, on average, expected an adjusted loss of $3.97 per share on revenue of $28.8 million, according to FactSet.
THQ, based in Agoura Hills, Calif., is changing its focus to its core gaming business that includes popular wrestling and action-adventure video games such as "WWE" and "Darksiders." As part of that, it exited its traditional kids' licensed game business, trimmed its product line and streamlined operations. The process, however, won't be finished until the company's 2013 fiscal year.
"We have made significant progress reshaping the company. With the changes implemented over the last several months, we are in a much better position today to deliver on our pipeline of games," said Chairman and CEO Brian Farrell in a statement.
THQ's stock closed down 9 cents at $4.91.