THQ Q4 to “exceed expectations”, SR: The Third ships 4 million

Wednesday, 18 April 2012 11:10 GMT By Johnny Cullen

THQ’s announced preliminary results for its fourth quarter, confirming it expects to “exceed” previous expectations with non-GAAP net sales in the region of $160 million to $170 million.

The figures are better than the $130 million to $150 million of non-GAAP net sales that was expected to be announced previously. It does expect a non-GAAP share loss, though, from $0.10 to $0.20, down from the previous expectation of $0.35 to $0.50.

The new outlook is down to strong performances of Saints Row: The Third, UFC Undisputed 3 and “higher than expected” digital sales driven by the former.

The Volition open-world title has shipped four million units to date since its November release. Net sales of UFC Undisputed 3, which launched back in January, is “slightly higher than expected”, according to THQ.

“THQ expects to report cash and cash equivalents of approximately $76 million at March 31, 2012, three times higher than the previous expectation for its year-end cash balance, due to better-than-expected operating results in the fourth quarter, as well as earlier-than-anticipated cash receipts,” it added.

“Additionally, the company ended the quarter with no outstanding borrowings on its $50 million credit facility, and did not borrow against the facility during the quarter. The company expects to utilize a substantial portion of its cash and cash equivalents as well as its credit facility as it launches its slate for the 2013 fiscal year, beginning with Darksiders II.”

THQ’s Q4 financial call will take place on May 15.

The news follows much speculation on the company’s future after it was reported earlier in the year it had canned its entire FY2014 line-up, offering itself for sale and that it was looking to sell MMO Warhammer 40k: Dark Millennium.

THQ denied the claims as such. Dark Millennium has now since been refocused into a single-player/multiplayer game than as an MMO.