Net sales up by 68 per cent for THQ

THQ has published preliminary financial results for Q2, revealing a 68 per cent increase in net sales and upping its forecast for the rest of the year.

The results are subject to a review of its stock option grant practices by the SEC, and according to a statement, the company will most likely need to adjust them before publishing a full report "as soon as practicable following completion of the special committee investigation".

But for the time being, THQ is reporting a rise in sales to USD $240.2 million (EUR 189.2 million), up from USD $142.7 million during the same period last year. The publisher attributed the increase to "robust sales" of internally developed titles Saints Row and Company of Heroes, plus Disney / Pixar tie-in Cars.

Net income for the quarter stood at US $12.6 million (EUR 9.9 million), or USD $ 0.19 (EUR 0.15) per diluted share. On a non-GAAP basis, excluding equity-based compensation expenses, the figure was USD $16.4 million (EUR 12.9 million).

Over the six month period ending September 30, net sales rose by 26 per cent to hit US $379 million (EUR 298.5 million). First half net income was US $518,000 (EUR 408,000) - or US $5.9 million (EUR 4.65 million) on a non-GAAP basis.

THQ now predicts net sales for the 2007 fiscal year of between US $925 million - US $975 million (EUR 728.7 million - EUR 768 million) and net income of between US $0.95 - US $1.05 per diluted share. For the third quarter, sales are forecast to stand at US $400 million - US $425 million (EUR 315 million - EUR 335 million), while fourth quarter sales are predicted to be between US $145 million - US $170 million (EUR 114 million - EUR 134 million).

"THQ's outstanding second quarter results demonstrate the power of our balanced mix of owned properties and games based on world-class brands," said CEO Brian Farrell

"During the quarter, THQ's Studio System delivered two ground-breaking original titles, Saints Row on Xbox 360 and Company of Heroes on PC. We have established two significant new franchises that we view as important pillars of our growth for many years to come."

THQ's Christmas line-up includes WWE SmackDown vs. Raw 2007, an Xbox 360 version of Cars and a range of Nickelodeon titles for multiple platforms including the Nintendo Wii. In addition, the publisher expects strong sales to continue for Saints Row and Company of Heroes.