THQ recently reported that they have returned to profitability after a difficult year. In addition, they will be opening new studios dedicated to digital development for consoles as well as Apple's iPad. Unfortunately, THQ will also be laying off some employees as part of the process.
Returning to profitability
The good news (for investors) is that THQ's profits for Q3 2010 are in line with expectations. For the nine months that ended December 31, 2009, THQ reported net income of $1.4 million, or $0.02 per share, compared with a net loss of $334.2 million, or $5.01 per share, in the prior-year period.
The good news (for investors) is that THQ's profits for Q3 2010 are in line with expectations. For the nine months that ended December 31, 2009, THQ reported net income of $1.4 million, or $0.02 per share, compared with a net loss of $334.2 million, or $5.01 per share, in the prior-year period.
On a non-GAAP (Generally Accepted Accounting Principles) basis, the company reported net income of $8.3 million, or $0.12 per share, compared with a net loss of $65.4 million, or $0.98 per share, in the same period a year ago.
We are pleased to report solid profitability in the third quarter and we are on track to achieve all of our fiscal 2010 financial targets that we announced at the beginning of the fiscal year. This marks a significant turnaround for THQ in just one year and underscores the success of our focused strategy and reduced cost structure.
--THQ President and CEO Brian Farrell.
Game releases and licenses
THQ also confirmed Warhammer 40,000 Dawn of War II: Chaos Rising for the PC for a (fiscal) Q4 2010 launch. (The fiscal Q4 ends September 2010.)
THQ also confirmed Warhammer 40,000 Dawn of War II: Chaos Rising for the PC for a (fiscal) Q4 2010 launch. (The fiscal Q4 ends September 2010.)
THQ also announced that they have entered a new agreement with WWE to develop WWE-based games. In addition, THQ has acquired exclusive worldwide rights to develop and publish games based on Dreamworks animation films, including Kung Fu Panda: The Kaboom of Doom, Puss in Boots, and the animated TV show The Penguins of Madagascar.
Lawsuits settled
In December 2009, THQ, World Wrestling Entertainment and JAKKS Pacific, Inc. reached settlement agreements regarding the WWE video game license and the termination of the THQ/JAKKS Pacific LLC joint venture. As a result, THQ reported a one-time settlement of $29.5 million, which is included in the venture partner expense line in its GAAP financial results for the fiscal 2010 third quarter ending December 31, 2009.
In December 2009, THQ, World Wrestling Entertainment and JAKKS Pacific, Inc. reached settlement agreements regarding the WWE video game license and the termination of the THQ/JAKKS Pacific LLC joint venture. As a result, THQ reported a one-time settlement of $29.5 million, which is included in the venture partner expense line in its GAAP financial results for the fiscal 2010 third quarter ending December 31, 2009.
New Studios opening
In addition to returning to profitability, THQ will be opening two new studios dedicated to digital distribution and online games. THQ has 'refocused' its Juice Games and Rainbow Studios development studios toward the creation of games for digital distribution for consoles, as well as the recently announced Apple iPad.
In addition to returning to profitability, THQ will be opening two new studios dedicated to digital distribution and online games. THQ has 'refocused' its Juice Games and Rainbow Studios development studios toward the creation of games for digital distribution for consoles, as well as the recently announced Apple iPad.
The studios will now be called THQ Digital Studios Warrington and THQ Digital Studios Phoenix, respectively.
THQ anticipates the first games from THQ Digital Studios Warrington and Phoenix to be released in fiscal 2011. The games are in development for all major digital platforms, including Xbox LIVE® Arcade, PlayStation® Network, iPhone and iPad.
THQ anticipates the first games from THQ Digital Studios Warrington and Phoenix to be released in fiscal 2011. The games are in development for all major digital platforms, including Xbox LIVE® Arcade, PlayStation® Network, iPhone and iPad.
Layoffs pending
Unfortunately, as part of 'refocusing' its studios, THQ will also be laying off approximately 60 people.
Unfortunately, as part of 'refocusing' its studios, THQ will also be laying off approximately 60 people.
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