THQ Reports Second Quarter Results

Increases earnings guidance for the year.

Posted by Staff
THQ Inc. announced today that net income for the second quarter ended June 30, 2001 increased to $3,454,000, or $0.15 per diluted share, on revenue of $55,236,000. This compares to a net loss for the second quarter of 2000 (before a non-cash charge) of $2,712,000, or $0.14 per diluted share, on revenue of $32,407,000.

For the six months ended June 30, 2001, net income was $4,315,000, or $0.19 per diluted share, on revenue of $114,564,000. For last year's first half, net income (before the non-cash charge) was $1,234,000, or $0.06 per diluted share, on revenue of $102,797,000.

Brian Farrell, president and chief executive officer of THQ, said, "New titles for next generation game platforms greatly contributed to our second quarter growth. Red Faction for PlayStation 2, developed by our internal studio, Volition, is proving to be a major success. According to independent retail data from the NPD Group, Red Faction was the number-one selling video game in the country for the week of May 20-26 and has continued to rank among the top four PlayStation 2 titles each week since its launch. NPD Group data also shows that MX 2002 featuring Ricky Carmichael, which was released at the end of the quarter, also ranks as a top-5 selling title for the PlayStation 2. This hit PS2 title was developed by another of THQ's internal studios, Pacific Coast Power & Light Company. In addition, our initial title for Game Boy Advance, GT Advance Championship Racing, is a top-10 seller for this new platform according to the NPD Group."

Farrell added, "We continue to be optimistic about the rest of 2001. We are excited about our portfolio of titles scheduled for release in the second half. And consumers' enthusiastic response to the new generation of video game hardware, including PlayStation 2 and Game Boy Advance as well as the soon-to-be-released Microsoft Xbox and Nintendo GameCube, sets the stage for the resurgent growth in the industry that has been widely anticipated to begin later this year."

The Company also announced that it currently expects net earnings for 2001 in the range of $1.38 to $1.47 per diluted share.