THQ cancels titles, revises financial guidance

THQ has announced updated guidance for its fiscal third quarter ended December 31, 2007, and its fiscal fourth quarter and year ending March 31, 2008.

The company raised Q3 revenue guidance to approximately USD 509 million from previous estimates of USD 490 million based upon better than expected sales of WWE SmackDown vs. Raw 2008 and MX vs. ATV Untamed.

At the same time, the company expects to report approximately USD 20 million in accelerated amortization expense related to the underperformance of Stuntman:Ignition, Ratatouille and Conan.

THQ confirmed that it had cancelled the PS3 version of Frontlines: Fuel of War and the PS2 version of Destroy All Humans!: Big Willy Unleashed. It also announced its decision not to pursue the Juiced and Stuntman franchises, and the closure of its Concrete Games studio.

For Q4, ending March 31, 2008, the company expects to report net sales of approximately USD 200 million, down from its previous guidance of USD 240 million. It expects a GAAP net loss of approximately USD 0.13 per share.

For the fiscal year ending March 31, 2008, THQ expects to report net sales of approximately USD 1.04 billion and a GAAP loss per share of approximately USD 0.16.

The company plans to report third quarter financial results on February 5.