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Earnings Roundup / Thq

Loss widens despite cost cuts

May 07, 2009|TIMES WIRE REPORTS

THQ Inc., maker of the WWE wrestling and SpongeBob SquarePants video games, reported a wider fiscal fourth-quarter loss after a $220-million cost-cutting campaign to eliminate jobs and close studios.

The net loss of $96.9 million, or $1.44 a share, compares with a loss of $34.5 million, or 52 cents, a year earlier, THQ said. Sales in the period that ended March 31 fell 9% to $170.3 million.

Excluding some items, the shortfall was 54 cents, larger than the average 33-cent deficit projected by analysts in a Bloomberg survey.

Chief Executive Brian Farrell, facing a fifth straight quarterly loss, recently completed cuts that included the elimination of a quarter of the company's staff.

The current quarter will include one of the company's highest-profile releases of the year, a new Ultimate Fighting Championship game that will reach stores May 19.

THQ shares fell 36 cents, or 9.2%, to $3.55 in extended trading. They rose 3 cents to $3.91 before the earnings release.

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