THQ reports net losses

Biz Brief

Vidgame publisher THQ beat guidance but still reported a net loss in the third quarter, during which it didn’t release any licensed kids games, its core strength.

Instead, company’s biggest sellers were military actioner Full Spectrum Warrior and PC strategy game Warhammer 40,000. CEO Brian Farrell said the success of those titles underscored THQ’s “strategy of gaining share against the core gamer.”

Company reported sales of $96.3 million in the third quarter, second on its fiscal calendar, down 24% from a year ago. Net loss was $6.4 million, compared with a profit of $3.6 million.

With games based on animated pics “The Incredibles” and “The SpongeBob SquarePants Movie” skedded for the holidays, THQ is predicting sales of $165 million for the current quarter.

Company recently secured a hotly contested five-year renewal of its master license with Nickelodeon (“SpongeBob SquarePants”) (Daily Variety, Oct. 25), two months after signing a second three-picture vidgame adaptation deal with Pixar (“The Incredibles”).

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