AGOURA HILLS, Calif.--(BUSINESS WIRE)--Apr. 2, 2009--
THQ Inc. (NASDAQ: THQI) today announced that it has substantially
completed the actions necessary to achieve its previously announced plan
to reduce fiscal 2010 budgeted annual spending by $220 million.
“We have executed on our previously announced business realignment
actions,” said Brian Farrell, THQ president and CEO. “Our goal is to
return to profitability and generate positive cash flow in fiscal 2010,
and to position THQ for long-term sustainable and profitable growth.
“We are confident in achieving these goals based on our focus on key
market opportunities, our robust franchise portfolio and our dedicated
and talented employee base,” said Farrell. “We look forward to
demonstrating success with our upcoming fiscal 2010 releases, including UFC
2009: Undisputed, Red Faction Guerrilla and Darksiders.”
During the fiscal 2009 fourth quarter, the company expects to report
approximately $45 million in non-GAAP business realignment expenses,
which includes cash costs of approximately $4 million, including
severance and other employee-related costs, and lease and other contract
termination costs; and approximately $41 million in non-cash impairment
charges related to the cancellation of titles and long-lived assets
associated with studio closures. The company expects to record
additional charges of up to $10 million in fiscal 2010 as certain
projects are completed and facilities are vacated. The charges will be
excluded from the company’s non-GAAP results.
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
THQ, Red Faction Guerrilla, Darksiders and their respective logos are
trademarks and/or registered trademarks of THQ Inc.
All other trademarks are trademarks or registered trademarks of their
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 non-GAAP business realignment expenses to be
reported during the fiscal fourth quarter ending March 31, 2009
and fiscal 2010, and statements about the expected impact of the
business realignment initiatives on our future operations and financial
condition. 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, and our ability to successfully implement our cost
reduction plans. 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
Source: THQ Inc.
THQ/Investor & Media Relations