THQ Reveals Q3 Loss
Posted by Adam Larck on 02.03.2012
uDraw production stopping, games dated inside.
THQ has reported a $56 million loss for the third quarter, ending Dec. 31.
"On our last call we told you we anticipated that our third quarter would be the largest in our company's history. Unfortunately, we were wrong," CEO Brian Farrell said.
Sales were also down from $314.6 million last year to $305.4 million this year.
The biggest problem for this may have been the uDraw, which the company is no longer manufacturing.
"Revenues were lower by about $100 million," Farrell said. "We've got 1.4 million [uDraw units] still in inventory we haven't sold that we planned on selling."
He added that $80 million of the lowered revenue was from units not sold, with the remaining $20 million coming from the lowered price of units sold.
"We would have doubled the profitability in the quarter were it not for uDraw," he said.
On the games side, the company dated Darksiders 2 for a June release, while pushing back Metro: Last Light to the first quarter of 2013.
They also announced that they are "actively seeking a partner" for the Warhammer Dark Millennium Online MMO, which is listed for fiscal year 2014. Also listed for FY14 and beyond are Volition's inSane, Homefront 2 and a "Patrice Désilets Original Title."
The company also said that "four unannounced core titles" will come out in FY14 and beyond.
