Year-End Cash Balance of $76 Million Significantly
Exceeds Prior Guidance
AGOURA HILLS, Calif., Apr 18, 2012 (BUSINESS WIRE) --THQ
Inc. (NASDAQ: THQI) today provided preliminary, unaudited financial
results for the fourth quarter ended March 31, 2012.
For the fourth quarter, THQ expects to report non-GAAP net sales of $160
million to $170 million, which is above the company's previous outlook
of non-GAAP net sales in the range of $130 million to $150 million.
Revised net sales expectations reflect:
continued strong net sales of the critically-acclaimed Saints Row(R):
The Third(TM), which to date has shipped in
more than four million units;
higher-than-expected digital sales, largely driven by the robust
digital content of Saints Row: The Third; and
slightly higher-than-expected net sales of UFC(R)
Undisputed(R) 3, which was released
mid-February 2012 to highly-favorable critical reviews, achieving an
average Metacritic score of 85.
The company currently expects a fiscal fourth quarter non-GAAP net loss
per share in the range of $0.10 to $0.20, compared to its previous
expectation of a net loss per share in the range of $0.35 to $0.50.
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. 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(R)
THQ's GAAP results for the fourth quarter ended March 31, 2012 are
expected to include non-cash software development charges of
approximately $30 million to $50 million resulting from decisions made
related to the company's previously-announced product strategy.
THQ will report full GAAP and non-GAAP fiscal 2012 fourth quarter and
full-year results, along with a reconciliation of those results, and
provide its outlook for fiscal 2013 on Tuesday, May 15, 2012. Conference
call details will be provided closer to the date.
Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher
of interactive entertainment software. The company develops its products
for all popular game systems, personal computers, wireless devices and
the Internet. 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 http://www.thq.com/.
THQ, Darksiders, Saints Row, Saints Row: The Third and their respective
logos are trademarks and/or registered trademarks of THQ Inc.
All other trademarks are property of their respective owners.
Non-GAAP Financial Measures
This press release discloses forward-looking information that includes
expectations that are not presented in accordance with United States
generally accepted accounting principles ("GAAP"). THQ believes that the
use of non-GAAP financial measures provides meaningful supplemental
information regarding its financial condition and results of operations,
and helps investors compare actual results to its long-term operating
goals as well as to its performance in prior periods. The non-GAAP
financial measures included in the press release 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.
THQ Inc. Caution Concerning Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. 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"),
including, but not limited to, the company's expectations for: its net
sales and net loss for the fourth quarter ended March 31, 2012, its cash
and cash equivalents at March 31, 2012, non-cash charges for the quarter
ended March 31, 2012, and its future use of cash and borrowings under
the company's credit facility. These statements are based upon
management's current 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, business, competitive, economic, legal, political, and
technological factors affecting our industry, operations, markets,
products, or pricing. 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 Annual Report
on Form 10-K for the fiscal period ended March 31, 2011 and subsequent
Quarterly Reports on Form 10-Q, and particularly the discussion of
trends and risk factors set forth therein. 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 are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release.
SOURCE: THQ Inc.
THQ Investor Relations