THQ's $7 million net loss in line with revised guidance

THQ has released financial results for the second quarter, reporting a net loss of USD 7 million compared to net income of USD 11.6 million a year ago.

The loss is consistent with the company's recently revised financial guidance.

THQ reported net sales of USD 229.3 million, down from USD 240.2 million the same period last year, driven primarily by Disney/Pixar's Ratatouille, as well as Stuntman: Ignition and Juiced 2: Hot Import Nights.

The company noted that it doubled its Nintendo DS revenue from the prior year, driven primarily by Ratatouille and Drawn to Life, a new original property.

"While we are disappointed with our recently revised fiscal 2008 financial guidance, we expect a solid second half to drive THQ's thirteenth consecutive year of revenue growth," said Brian Farrell, THQ president and CEO.

"Our proven holiday line-up features WWE SmackDown vs. Raw 2008, scheduled to release on twice as many platforms as last year. We have already shipped Cars 2: Mater-National, a sequel to last year's top-selling family title, as well as games based on Nickelodeon's popular Avatar, Nicktoons and SpongeBob characters," Farrell said.

THQ also recently announced Saints Row 2 for Xbox 360 and PS3 in fiscal 2009. Other upcoming titles include Disney/Pixar's Wall-E, Red Faction 3, and games based upon the UFC.

For Q3, the company expects net sales of USD 490 million and GAAP net income of approximately USD 0.61 per share. For the fiscal year ending March 2008, THQ expects net sales of approximately USD 1.06 billion.