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THQ Reports Financial 2012 Results
Company has better-than-expected fourth quarter, brighter outlook
Posted on May 15, 2012 - 4:36pm EST (May 15, 2012 16:36)
THQ today reported financial results for the fourth quarter and fiscal year ended March 31, 2012.
Q4 net sales were $170.7 million, at the high end of expected $160 - $170 million. The company ended the quarter with $76.0 million in cash and equivalents. With its focused product plan, leaner cost structure, cash balance, and existing credit facility, THQ believes it has adequate resources to execute on its plan and deliver its strong multi-year pipeline of games.
“We exceeded our initial fourth quarter guidance for net sales, earnings and cash position, driven by high quality core games with a significant digital component,” said THQ President and CEO Brian Farrell. “We have made significant changes to our business, and are on track to execute our strategy of delivering quality connected core gaming experiences, beginning with the sequel to Darksiders in August.”
The realignment plan, when fully realized in fiscal 2013, is expected to result in a reduction of expenditures totaling $180 million from the company’s annualized run rate. The company has reduced its future kids’ license commitments by approximately $30 million. In addition, the company is no longer manufacturing software and hardware for the uDraw GameTablet.
Saints Row is firmly established as THQ’s most successful owned-IP franchise, with 4.25 million units of Saints Row: The Third shipped. The game has generated the highest digital revenue of any console title in the company’s history.
WWE® ‘12 has shipped more than 2.2 million units since its launch in November 2011. The latest installment of the UFC franchise, UFC Undisputed 3, shipped 1.4 million units since its mid-February 2012 launch.
This year and into early 2013, the company plans to release Darksiders 2, Saints Row: The Third – Enter The Dominatrix, another WWE game, Company of Heroes 2, Metro Last Light, and South Park game.