THQ Announce Q1 2007 Reports News
Chris Leyton
28/07/2006
Stronger-than-expected sales can’t help lift THQ’s bottom line…
For the first quarter of fiscal 2007 THQ recorded net sales of $138.8 million (£74.4 million), exceeding the publisherâs previous expectation of $125.0 million (£67.0 million), but falling short of the $158.0 million (£84.7 million) recorded in the previous year. THQ attributed the higher-than-expected sales primarily on the strong demand for Disney Pixarâs Cars and Moto GP 2006.
During the quarter THQ reported a net loss of $12.1 million (£6.5 million), compared to a net loss of $4 million (£2.1 million) in the previous year.
"Among a number of strong-performing titles in the June quarter, Cars was especially noteworthy, with U.S. sales outpacing both Finding Nemo and The Incredibles over a comparable period," said Brian Farrell, THQ president and CEO. "Our internal development teams delivered a great interactive experience based on the film and our sales and marketing teams executed at retail. We expect sales of Cars to continue to drive our upcoming quarterly results as we complete the global roll-out across Europe and Asia this summer and then bring Cars to the Xbox 360 and Nintendo Wii platforms this holiday season."
Farrell continued, "With the roll-out of Cars overseas and the launch of our key brands on next-generation hardware, we expect to outperform the market in what is widely viewed as a transition year for the industry. Our confidence reflects the strength of THQ's product portfolio, which offers a balance of new original properties for avid gamers on next-generation consoles and Windows PC, including the upcoming Saints Row and Company of Heroes, and multi-platform releases of proven mass-market licensed titles, including games based on Disney*Pixar, WWE and Nickelodeon brands."
For the full 2007 fiscal year, THQ expects net sales to be in the range of $900 million (£482.6 million) to $950 million (£509.4 million), with net sales during the second quarter likely to reach $195 million (£104.6 million).