Tag Archives: thq q3 financials 2009

The market reacted badly to THQ’s news of a near-$200 million Q3 loss yesterday, sending its shared down 18 percent to $3.40.

The stock actually hit $2.45 at one point, its lowest level since October 1997.

THQ confirmed the loss earlier this week, as well as the need to drop 600 staff in an effort to cut costs.

More here.

THQ boss Brian Farrell said in the firm’s Q3 earnings call last night that fewer core games are to be developed by the publisher in the coming year, but those that are will be more polished and better marketed.

“With respect to the core gamer, the aggregate spending will come down,” Farrell said.

“The idea is focus, focus, focus. But we will compete aggressively…when we launch.”

THQ is “putting fewer core gamer titles into full production,” but focusing more heavily on the development and marketing of each.

Farrell added: “Clearly, this is one of the most challenging holiday retail environments that I’ve experienced in my 18 years at THQ.”

The exec’s comments come in the wake of the announcement of a $191.8 million loss for the three months ending December 31. Around 600 THQ staffers are to lose their jobs.

Want to know what people say when they’ve lost nearly $200 million in three months and have to fire 600 people? Wonder no longer. Seeking Alpha’s published a transcript of last night’s THQ Q3 earnings call in its entirety. Get it here.

THQ’s the latest publisher to announce horror end-year financials today, revealing a $191.8 million loss for the three months ending December 31.

Sales for the period were $357.3 million, a year-on-year drop of 30 percent.

The company had already confirmed it was to drop 250 staff, but extended the redundancies today to 600, 24 percent of its total workforce.

The move should cut costs by $220 million in fiscal 2010, said the firm.

“Our focus for next fiscal year is to return to profitability and to generate cash,” CEO Brian Farrell said in a statement. “Our fiscal 2010 plan will reflect the benefits of our focused product strategy and strong actions on costs.”