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Earnings Roundup / Thq

Game publisher swings to a loss

February 05, 2009

THQ Inc., publisher of the WWE wrestling and Wall-E video games, posted a $191.8-million fiscal third-quarter loss and said it would eliminate almost a quarter of its staff.

The net loss for the period ended Dec. 31 was $2.86 a share, reflecting a $118-million write-down of acquired assets, THQ said. The loss compares with net income of $15.5 million, or 23 cents, a year earlier. Sales fell 30% to $357 million.

THQ has posted losses in five of the last six quarters as the company has struggled to find hits. Chief Executive Brian Farrell is accelerating studio closings as he reshapes THQ to focus on combat games and titles for children and families. The company said it would eliminate 600 jobs to reduce spending in 2010 by $220 million. In November, THQ said it would eliminate as many as 250 positions.

Results for the fourth quarter will be "significantly below" previous expectations, the Agoura Hills company said. The company didn't provide specifics, citing "economic uncertainty."

Shares fell 10 cents to $4.14.

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