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THQ Reports Fiscal 2009 Second Quarter Results, Reduces Fiscal 2009 Outlook and Announces Significant Business Realignment
    --  Company Announces New Strategic Plan to Improve Profitability

    --  Q2 GAAP Results Include $80.5 Million ($1.21 per share)
        Non-Cash Charge to Record Valuation Allowance and Related Tax
        Effects for Deferred Tax Assets

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Nov. 5, 2008--THQ Inc. (NASDAQ: THQI) today announced financial results for the fiscal second quarter ended September 30, 2008, reduced its financial outlook for the fiscal year ending March 31, 2009, and announced a significant business realignment.

Second Quarter Results

For the three months ended September 30, 2008, THQ reported net sales of $164.8 million, compared with $229.3 million in the prior year. On a non-GAAP basis, the company reported fiscal 2009 second quarter net sales of $151.6 million. Fiscal 2009 second quarter sales reflect a lighter new release schedule than the prior-year period, and included the international roll-out of games based on Disney/Pixar's WALL-E and initial global shipments of new original Wii(TM) title de Blob(TM).

For the three months ended September 30, 2008, the company reported a net loss of $115.3 million, or $1.73 per share, which included a non-cash charge of $1.21 per share related to a valuation allowance and the related tax effects for its deferred tax assets. In the same period a year ago, the company reported a net loss of $7.0 million, or $0.11 per share. On a non-GAAP basis, the company reported a fiscal 2009 second quarter net loss of $30.4 million, or $0.46 per share. This was below the company's previous guidance of a loss of $0.35 to $0.39 per share, primarily due to lower-than-anticipated international sales of WALL-E and higher-than-expected sales returns and allowances. In the same quarter a year ago, the company reported a non-GAAP net loss of $2.2 million, or $0.03 per share.

The company's income tax expense for the quarter included a non-cash charge of $80.5 million, or $1.21 per share, on a GAAP basis, related to a valuation allowance and the related tax effects for its deferred tax assets, in accordance with Statement of Financial Accounting Standards (SFAS) No. 109. Although this non-cash valuation allowance reduces the value of the net deferred tax assets on the balance sheet, the company expects to be able to utilize these assets to reduce tax expense in future profitable periods.

A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.


    Fiscal 2009 Second Quarter Highlights and Recent Developments

    --  The company continued to build the Saints Row(R) franchise,
        shipping more than two million units of Saints Row(R) 2
        globally in its first two weeks and achieving a Metacritic
        rating above 80

    --  THQ established a new, internally developed Wii franchise with
        de Blob, which achieved a Metacritic rating above 80

    --  The company strengthened its portfolio of online games and
        enhanced its online business with the following announcements:

        -- A new agreement to launch WWE(R) Online (working title) in
         Asia in 2010

        -- The formation of a joint venture with ICE Entertainment
         ("ICE"), an operator of online games located in Shanghai,
         China, to launch Dragonica, a free-to-play, micro-
         transaction-based massively multiplayer online ("MMO") casual
         game scheduled for release in North America in 2009

        -- The opening of a new office in Shanghai, China, from which
         THQ will pursue new development opportunities and expand
         publishing partnerships in the growing Chinese market

Strategic Plan and Business Realignment

The company has prepared a new strategic plan, which will be discussed on its conference call today. As part of the new plan, the company today announced that it is undertaking a significant business realignment to position THQ for future profitability and growth. As part of this realignment, THQ plans to focus on fewer, higher quality titles, and to align its organization and cost structure accordingly. The company is in the process of implementing its plan with the cancellation of several titles that were in development but had not been publicly announced, the closure of five studios and a reduction in product development personnel of approximately 250 people, or 17 percent of its studio staff, and the streamlining of its corporate organization to support the new product strategy.

The company has reduced its fiscal 2010 forecasted annual product development spending by approximately $100 million, a reduction of about $30 million below its estimated product development spending in fiscal 2009. The company will further reduce costs and streamline operations, and expects to reduce selling, marketing and general and administrative expenses on an annual basis by approximately $20 million. The company expects to incur significant charges as part of its business realignment, which will be excluded from the company's non-GAAP results. Most of the charges will be recognized in the remainder of fiscal 2009.

"We have made substantial progress in improving product quality and innovation, as evidenced by recent shipments of several well-reviewed games including de Blob and Saints Row 2," said Brian Farrell, THQ president and CEO. "We are aligning our business to be more competitive in key consumer segments and address the current business environment. We expect the combination of a much more focused and competitive product line with a more efficient cost structure to put THQ back on the path to growth and profitability in fiscal year 2010."

Fiscal 2009 Guidance

THQ issued initial guidance for the fiscal third quarter ending December 31, 2008, and updated its guidance for the fiscal year ending March 31, 2009. The primary drivers of the updated fiscal 2009 guidance are:

    --  The company's decision to release original titles Red
        Faction(R): Guerrilla(TM) and Darksiders(TM): Wrath of War(TM)
        in the fiscal year ending March 31, 2010, instead of the
        previously scheduled fourth quarter of fiscal 2009 accounted
        for approximately $125 million in lower forecasted net sales

    --  The significant appreciation of the US dollar accounted for
        approximately $80 million in lower forecasted net sales

    --  The company's expectations for a more cautious retail
        environment and continued softness in sales of kids games
        accounted for approximately $70 million in lower forecasted
        net sales

As a result of these factors, THQ's new non-GAAP guidance is as follows:

    --  For the fiscal year ending March 31, 2009, THQ expects net
        sales in the range of $875 million to $900 million. The
        company expects earnings to be approximately breakeven in the
        second half of the fiscal year.

    --  For the fiscal third quarter ending December 31, 2008, THQ
        expects to report net sales in the range of $400 million to
        $420 million. The company expects to report net income per
        diluted share in the range of $0.05 to $0.15.

    --  The company also expects to record severance and other
        expenses related to the business realignment announced today
        but has not yet quantified these amounts, which will be
        excluded from non-GAAP results.

    Non-GAAP Financial Measures

In addition to results determined in accordance with GAAP, the company discloses certain non-GAAP financial measures that exclude the following: stock-based compensation expense, the impact of deferred revenue and related costs, business realignment expense, the other-than-temporary write-down on investments, the non-cash valuation allowance for deferred tax assets and the related income tax effects for each of these items. The non-GAAP financial measures included in the earnings release have been reconciled to the comparable GAAP results and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The company believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information to investors regarding the company's performance by excluding certain items that may not be indicative of the company's operating results. These non-GAAP financial measures also facilitate comparisons of the company's performance to prior periods.

Stock-Based Compensation. When evaluating the performance of its business, THQ does not consider stock-based compensation charges. Likewise, the company excludes stock-based compensation expense from its short and long-term operating plans. In contrast, THQ's management team is held accountable for cash-based compensation and such amounts are included in the company's operating plans. In addition, the stock-based compensation charges are subject to significant fluctuation outside the control of management due to the variables used to estimate the fair value of a share-based payment, such as, THQ's stock price, interest rates and the volatility of the company's stock price. Further, when considering the impact of equity award grants, THQ places a greater emphasis on overall shareholder dilution rather than the accounting charges associated with such grants.

Deferred Revenue/Costs. The company recognizes revenue and related costs from the sale of certain titles with significant online functionality over the estimated online service period. Although the company will defer the recognition of a significant portion of its net revenue and costs with respect to these titles, there will be no adverse impact to its operating cash flow. Internally, THQ excludes the impact of deferred net revenue and costs related to packaged games in its non-GAAP financial measures when evaluating the company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team.

Business Realignment Expense and Other-Than-Temporary Write-Down on Investments. From time to time, the company expects to incur certain expenses that are not part of normal ongoing operations. The company believes that excluding the impact of these expenses from its operating results is important to facilitate comparisons to prior periods.

Non-Cash Valuation Allowance for Deferred Tax Assets. In accordance with FAS No. 109, "Accounting for Income Taxes" (FAS 109), the company evaluates its deferred tax assets, including net operating losses and tax credits, to determine if a valuation allowance is required. THQ has had three years of cumulative US tax losses. Therefore, during the second quarter of fiscal 2009, the company recorded a valuation allowance against its deferred tax assets. Internally, THQ excludes the impact of the valuation allowance for deferred tax assets in its non-GAAP financial measures when evaluating the company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team.

In the financial tables below, THQ has provided a reconciliation of the most comparable GAAP financial measure to each of the non-GAAP financial measures used in this press release.

Investor Conference Call

THQ will host a conference call to discuss fiscal second quarter results today at 2:00 p.m. Pacific/5:00 p.m. Eastern. Please dial 877.356.8075 or 706.902.0203, conference ID 69135276 to listen to the call or visit the THQ Inc. Investor Relations Home page at http://investor.thq.com. The online archive of the broadcast will be available approximately two hours after the live call ends. In addition, a telephonic replay of the conference call will be provided approximately two hours after the live call ends through November 7, 2008, by dialing 800.642.1687 or 706.645.9291, conference ID 69135276.

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, Darksiders: Wrath of War, de Blob, Red Faction: Guerrilla, Saints Row 2 and their respective logos are trademarks and/or registered trademarks of THQ Inc.

All other trademarks are trademarks or registered trademarks 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 company's expectations for revenue and earnings per share for the quarter ending December 31, 2008, and the fiscal year ending March 31, 2009, statements about the expected impact of the business realignment on our future operations and for the company's product releases and financial performance in future periods. 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 "THQ") and are based upon management'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 THQ'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, 2008, 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.


                      THQ Inc. and Subsidiaries
           Unaudited Consolidated Statements of Operations
                (In thousands, except per share data)

                              Three Months Ended    Six Months Ended
                                September 30,        September 30,
                              ------------------   ------------------
                                2008      2007       2008      2007
                              --------- --------   --------- --------

Net sales                     $ 164,816 $229,349   $ 302,394 $333,834

Costs and expenses:
   Cost of sales - product
    costs                        76,038   87,449     136,046  131,164
   Cost of sales - software
    amortization and
    royalties                    39,512   38,311      66,512   50,909
   Cost of sales - license
    amortization and
    royalties                    20,007   22,159      32,931   35,830
   Cost of sales - venture
    partner expense                 899    1,137       2,354    2,034
   Product development           23,231   28,561      56,780   53,193
   Selling and marketing         43,124   47,193      72,175   69,996
   General and administrative    16,971   17,638      36,574   36,741
                              --------- --------   --------- --------
      Total costs and
       expenses                 219,782  242,448     403,372  379,867
                              --------- --------   --------- --------
Loss from continuing
 operations before interest
 and other income, net,
 income taxes and minority
 interest                       (54,966) (13,099)   (100,978) (46,033)
   Interest and other income,
    net                          (2,438)   2,569          56    9,925
                              --------- --------   --------- --------
Loss from continuing
 operations before income
 taxes and minority interest    (57,404) (10,530)   (100,922) (36,108)
   Income taxes (a)              57,892   (3,491)     43,640  (19,795)
                              --------- --------   --------- --------
Loss from continuing
 operations before minority
 interest                      (115,296)  (7,039)   (144,562) (16,313)
   Minority Interest                 36       --          36       --
                              --------- --------   --------- --------
Loss from continuing
 operations                    (115,260)  (7,039)   (144,526) (16,313)
Gain on sale of discontinued
 operations, net of tax              --       --       2,042       --
                              --------- --------   --------- --------
Net loss                      $(115,260)$ (7,039)  $(142,484)$(16,313)
                              ========= ========   ========= ========

Loss per share - basic:
   Continuing operations      $   (1.73)$  (0.11)  $   (2.17)$  (0.24)
   Discontinued operations           --       --        0.03       --
                              --------- --------   --------- --------
Loss per share - basic        $   (1.73)$  (0.11)  $   (2.14)$  (0.24)
                              ========= ========   ========= ========

Loss per share - diluted:
   Continuing operations      $   (1.73)$  (0.11)  $   (2.17)$  (0.24)
   Discontinued operations           --       --        0.03       --
                              --------- --------   --------- --------
Loss per share - diluted      $   (1.73)$  (0.11)  $   (2.14)$  (0.24)
                              ========= ========   ========= ========

Shares used in per share
 calculation - basic             66,757   66,462      66,655   66,695
                              ========= ========   ========= ========
Shares used in per share
 calculation - diluted           66,757   66,462      66,655   66,695
                              ========= ========   ========= ========
(a) Income tax expense for the three and six month periods ended
     September 30, 2008 includes the deferred tax asset valuation
     allowance and related tax impact of $80,520 recorded in
     accordance with FAS No. 109, "Accounting for Income Taxes" (FAS
     109).

                      THQ Inc. and Subsidiaries
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
                                  (a)
                (In thousands, except per share data)

                             Three Months Ended    Six Months Ended
                                September 30,        September 30,
                             -------------------  -------------------
                               2008       2007      2008       2007
                             ---------  --------  ---------  --------
Net sales                    $ 164,816  $229,349  $ 302,394  $333,834
   Changes in deferred net
    revenue (b)                (13,192)       --    (29,696)       --
                             ---------  --------  ---------  --------
Non-GAAP net sales           $ 151,624  $229,349  $ 272,698  $333,834
                             =========  ========  =========  ========


                              Three Months Ended    Six Months Ended
                                September 30,        September 30,
                             -------------------  -------------------
                               2008       2007      2008       2007
                             ---------  --------  ---------  --------

Loss from continuing
 operations                  $(115,260) $ (7,039) $(144,526) $(16,313)

Non-GAAP adjustments:
   Changes in deferred net
    revenue (b)                (13,192)       --    (29,696)       --

   Change in deferred cost
    of sales:
      Change in deferred
       product costs             3,366        --      7,268        --
      Change in deferred
       software amortization
       and royalties             6,067        --     12,762        --
                             ---------  --------  ---------  --------
   Total change in deferred
    cost of sales (b)            9,433        --     20,030        --

   Business realignment
    expenses                       669        --      4,196        --
   Other than temporary
    impairment on
    investments                  4,561        --      4,561        --

   Stock-based compensation
    and related costs:
      Cost of sales -
       software amortization
       and royalties             1,152     1,212      1,728     2,978
      Product development          724     1,135      1,872     2,172
      Selling and marketing        866       795      1,681     1,510
      General and
       administrative            1,792     3,822      3,575     6,331
                             ---------  --------  ---------  --------
   Total stock-based
    compensation and related
    costs (c)                    4,534     6,964      8,856    12,991

   Deferred tax asset
    valuation allowance and
    related tax impact (d)      80,520        --     80,520        --
   Income tax adjustments
    (e)                         (1,705)   (2,119)    (1,823)   (5,040)
                             ---------  --------  ---------  --------

Total non-GAAP adjustments      84,820     4,845     86,644     7,951
                             ---------  --------  ---------  --------

Non-GAAP loss from
 continuing operations         (30,440)   (2,194)   (57,882)   (8,362)
Gain on sale of discontinued
 operations, net of tax             --        --      2,042        --
                             ---------  --------  ---------  --------
Non-GAAP net loss            $ (30,440) $ (2,194) $ (55,840) $ (8,362)
                             =========  ========  =========  ========

Non-GAAP loss per share -
 diluted:
   Non-GAAP continuing
    operations               $   (0.46) $  (0.03) $   (0.87) $  (0.13)
   Discontinued operations          --        --       0.03        --
                             ---------  --------  ---------  --------
Non-GAAP loss per share -
 diluted                     $   (0.46) $  (0.03) $   (0.84) $  (0.13)
                             =========  ========  =========  ========

Notes:

(a) See explanation above regarding the Company's practice on
     reporting non-GAAP financial measures.
(b) Prior to the third quarter of fiscal 2008, the Company did not
     defer net revenue or the related cost of sales.
(c) Stock-based compensation expense recorded under FAS 123(R) in
     fiscal 2009 and fiscal 2008.
(d) Deferred tax asset valuation allowance and related tax impact
     recorded in accordance with FAS 109.
(e) Income tax associated with other non-GAAP adjustments.

                      THQ Inc. and Subsidiaries
                Unaudited Consolidated Balance Sheets
                            (In thousands)

                                            September 30,   March 31,
                                                2008           2008
                                            -------------   ----------

ASSETS
   Cash, cash equivalents and short-term
    investments                                  $162,627   $  317,504
   Accounts receivable, net of allowances          63,303      112,843
   Inventory                                       63,811       38,240
   Licenses                                        42,651       47,182
   Software development                           203,990      155,821
   Deferred income taxes                            7,503           --
   Prepaid expenses and other current
    assets                                         18,554       24,487
                                            -------------   ----------
      Total current assets                        562,439      696,077
   Property and equipment, net                     45,711       50,465
   Licenses, net of current portion                75,558       39,597
   Software development, net of current
    portion                                        70,942       25,369
   Income taxes receivable, net of current
    portion                                         8,381       16,116
   Deferred income taxes                               --       61,710
   Goodwill                                       122,110      122,385
   Long-term marketable securities                 37,760       52,599
   Other long-term assets, net                     18,086       20,002
                                            -------------   ----------
TOTAL ASSETS                                     $940,987   $1,084,320
                                            =============   ==========

LIABILITIES, MINORITY INTEREST AND
 STOCKHOLDERS' EQUITY
   Accounts payable                              $ 79,772   $   61,700
   Accrued and other current liabilities          203,306      202,102
   Income taxes payable                            12,020        6,504
   Deferred income taxes                               --       29,266
                                            -------------   ----------
      Total current liabilities                   295,098      299,572
   Other long-term liabilities                     38,941       44,179
                                            -------------   ----------
      Total liabilities                           334,039      343,751
   Minority Interest                                3,464           --
   Total stockholders' equity                     603,484      740,569
                                            -------------   ----------
TOTAL LIABILITIES, MINORITY INTEREST AND
 STOCKHOLDERS' EQUITY                            $940,987   $1,084,320
                                            =============   ==========

                      THQ Inc. and Subsidiaries
             Unaudited Supplemental Financial Information


                                Three Months Ended September 30, 2008
                                -------------------------------------
                                        GAAP            Non-GAAP(a)
                                --------------------- ---------------
Platform Revenue Mix
Consoles
   Microsoft Xbox 360                 $ 19,978  12.1% $ 10,016   6.6%
   Microsoft Xbox                           --    --        --    --
   Nintendo Wii                         30,504  18.5    30,504  20.1
   Nintendo GameCube                        62    --        62   0.1
   Sony PlayStation 3                   11,622   7.1    11,622   7.7
   Sony PlayStation 2                   13,836   8.4    13,836   9.1
                                -------------- ------ -------- ------
                                        76,002  46.1    66,040  43.6
                                -------------- ------ -------- ------
Handheld
   Nintendo Dual Screen                 48,585  29.5    48,585  32.0
   Nintendo Game Boy Advance             1,511   0.9     1,511   1.0
   Sony PlayStation Portable            11,233   6.8    11,233   7.4
   Wireless                              6,231   3.8     6,231   4.1
                                -------------- ------ -------- ------
                                        67,560  41.0    67,560  44.5
                                -------------- ------ -------- ------

PC                                      21,254  12.9    18,024  11.9
Other                                       --    --        --    --
                                -------------- ------ -------- ------
Total Net Sales                       $164,816 100.0% $151,624 100.0%
                                ============== ====== ======== ======

Geographic Revenue Mix
Domestic                              $ 76,502  46.4% $ 69,272  45.7%
Foreign                                 88,314  53.6    82,352  54.3
                                -------------- ------ -------- ------
Total Net Sales                       $164,816 100.0% $151,624 100.0%
                                ============== ====== ======== ======



                                 Three Months Ended September 30, 2007
                                 -------------------------------------
                                         GAAP            Non-GAAP(b)
                                 --------------------- ---------------
Platform Revenue Mix
Consoles
   Microsoft Xbox 360                  $ 44,418  19.4% $ 44,418  19.4%
   Microsoft Xbox                           357   0.1       357   0.1
   Nintendo Wii                           8,914   3.9     8,914   3.9
   Nintendo GameCube                      1,801   0.8     1,801   0.8
   Sony PlayStation 3                    13,282   5.8    13,282   5.8
   Sony PlayStation 2                    62,667  27.3    62,667  27.3
                                 -------------- ------ -------- ------
                                        131,439  57.3   131,439  57.3
                                 -------------- ------ -------- ------
Handheld
   Nintendo Dual Screen                  51,559  22.5    51,559  22.5
   Nintendo Game Boy Advance              9,013   3.9     9,013   3.9
   Sony PlayStation Portable             16,888   7.4    16,888   7.4
   Wireless                               4,874   2.1     4,874   2.1
                                 -------------- ------ -------- ------
                                         82,334  35.9    82,334  35.9
                                 -------------- ------ -------- ------

PC                                       15,576   6.8    15,576   6.8
Other                                        --    --        --    --
                                 -------------- ------ -------- ------
Total Net Sales                        $229,349 100.0% $229,349 100.0%
                                 ============== ====== ======== ======

Geographic Revenue Mix
Domestic                               $ 77,803  33.9% $ 77,803  33.9%
Foreign                                 151,546  66.1   151,546  66.1
                                 -------------- ------ -------- ------
Total Net Sales                        $229,349 100.0% $229,349 100.0%
                                 ============== ====== ======== ======

                                  Six Months Ended September 30, 2008
                                  -----------------------------------
                                         GAAP           Non-GAAP(a)
                                  ------------------- ---------------
Platform Revenue Mix
Consoles
   Microsoft Xbox 360                 $ 40,107  13.3% $ 17,537   6.4%
   Microsoft Xbox                           --    --        --    --
   Nintendo Wii                         53,808  17.8    53,808  19.7
   Nintendo GameCube                       115    --       115   0.1
   Sony PlayStation 3                   18,275   6.1    18,275   6.7
   Sony PlayStation 2                   33,688  11.1    33,688  12.4
                                  ------------ ------ -------- ------
                                       145,993  48.3   123,423  45.3
                                  ------------ ------ -------- ------
Handheld
   Nintendo Dual Screen                 75,875  25.1    75,875  27.8
   Nintendo Game Boy Advance             3,130   1.0     3,130   1.1
   Sony PlayStation Portable            21,613   7.1    21,613   7.9
   Wireless                             11,378   3.8    11,378   4.2
                                  ------------ ------ -------- ------
                                       111,996  37.0   111,996  41.0
                                  ------------ ------ -------- ------

PC                                      44,405  14.7    37,279  13.7
Other                                       --    --        --    --
                                  ------------ ------ -------- ------
Total Net Sales                       $302,394 100.0% $272,698 100.0%
                                  ============ ====== ======== ======

Geographic Revenue Mix
Domestic                              $151,352  50.1% $136,379  50.0%
Foreign                                151,042  49.9   136,319  50.0
                                  ------------ ------ -------- ------
Total Net Sales                       $302,394 100.0% $272,698 100.0%
                                  ============ ====== ======== ======

                                   Six Months Ended September 30, 2007
                                   -----------------------------------
                                          GAAP           Non-GAAP(b)
                                   ------------------- ---------------
Platform Revenue Mix
Consoles
   Microsoft Xbox 360                  $ 54,765  16.4% $ 54,765  16.4%
   Microsoft Xbox                         1,752   0.5     1,752   0.5
   Nintendo Wii                          15,238   4.6    15,238   4.6
   Nintendo GameCube                      5,974   1.8     5,974   1.8
   Sony PlayStation 3                    13,282   4.0    13,282   4.0
   Sony PlayStation 2                    88,255  26.4    88,255  26.4
                                   ------------ ------ -------- ------
                                        179,266  53.7   179,266  53.7
                                   ------------ ------ -------- ------
Handheld
   Nintendo Dual Screen                  69,183  20.7    69,183  20.7
   Nintendo Game Boy Advance             17,331   5.2    17,331   5.2
   Sony PlayStation Portable             24,768   7.4    24,768   7.4
   Wireless                               9,248   2.8     9,248   2.8
                                   ------------ ------ -------- ------
                                        120,530  36.1   120,530  36.1
                                   ------------ ------ -------- ------

PC                                       33,640  10.1    33,640  10.1
Other                                       398   0.1       398   0.1
                                   ------------ ------ -------- ------
Total Net Sales                        $333,834 100.0% $333,834 100.0%
                                   ============ ====== ======== ======

Geographic Revenue Mix
Domestic                               $143,896  43.1% $143,896  43.1%
Foreign                                 189,938  56.9   189,938  56.9
                                   ------------ ------ -------- ------
Total Net Sales                        $333,834 100.0% $333,834 100.0%
                                   ============ ====== ======== ======
Notes:

(a) See explanation above regarding the Company's practice on
     reporting non-GAAP financial measures.
(b) Prior to the third quarter of fiscal 2008, the Company did not
     defer net revenue.

    CONTACT: THQ/Investor & Media Relations
             Julie MacMedan, 818/871-5125

    SOURCE: THQ Inc.

 
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