Science & Technology
Science and Technology
Science and Technology
Mon, June 14, 2010 THQ Updates Fiscal 2011 First Quarter and Full-Year Outlook
AGOURA HILLS, Calif.--([ BUSINESS WIRE ])--THQ Inc. (NASDAQ: THQI) today announced updated guidance for its fiscal first quarter ending June 30, 2010, and its fiscal year ending March 31, 2011, reflecting lower-than-anticipated sales of UFC® Undisputeda" 2010, and the strengthening US dollar.
For the fiscal first quarter ending June 30, 2010, the company expects non-GAAP net sales to be between $155 million to $165 million, which is below the companya™s previous outlook of non-GAAP net sales in the range of $190 million to $200 million. The company also expects fiscal first quarter non-GAAP loss per share in the range of $0.20 to $0.30, compared with its previous outlook of breakeven.
Based on the revised outlook for UFC Undisputed 2010, combined with the strengthening US dollar, the company now expects to report full year non-GAAP net sales in the range of $845 million to $865 million and roughly breakeven non-GAAP earnings per share for the full year. Previous FY11 full year guidance was non-GAAP net sales in the range of $905 million to $920 million and non-GAAP earnings per share in the range of $0.25 to $0.30.
THQ President and CEO Brian Farrell said, aWhile we are disappointed with this financial update, we continue to execute on our plan of bringing quality games to market. As we discussed on our May 5th conference call, our primary goal in fiscal 2011 was to position THQ for growth in fiscal 2012 and beyond. We have a strong pipeline scheduled for release over the next three years and we encourage everyone to visit our booth at E3 to see our impressive line-up.a
Farrell added, aUFC Undisputed 2010 is a high quality game, with a Metacritic score of 85, based on the tremendous UFC brand. Preorders were up 50% over last year and we saw strong retail and consumer demand for the title coming into launch, resulting in shipments of 2.6 million units to date. Unfortunately, total sell through to date has been below our expectations and prior-year results. We will continue to drive demand through a strong marketing campaign and by working with our partners at the UFC, including the upcoming July 4th UFC 116 event featuring our cover athlete, Brock Lesnar.a
About THQ
[ THQ Inc. ] (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software. Headquartered in Los Angeles County, California, THQ sells product through its global network of offices located throughout North America, Europe and Asia Pacific. More information about THQ and its products may be found at [ www.thq.com ] and [ www.thqwireless.com ]. THQ, and its respective logo are trademarks and/or registered trademarks of THQ Inc. All other trademarks are property of their respective owners.
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the companya™s expectations for the fiscal first quarter and year ending March 31, 2011.These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively referred to as aTHQa) and are based upon managementa™s beliefs and certain assumptions made by management.Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive and technological factors affecting the operations, markets, products, services and pricing of THQ.Unless otherwise required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to these forward-looking statements.Readers should carefully review the risk factors and the information that could materially affect THQa™s financial results, described in other documents that THQ files from time to time with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the fiscal period ended March 31, 2010, and particularly the discussion of risk factors that may affect results of operations set forth therein.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
