Gaming
THQ reports over $55 million loss last quarter
Published Friday, Feb 3 2012, 05:37 GMT | By Scott Nichols | Add comment
THQ has revealed a net loss of $55.9 million (£35.4 million) for the three-month quarter ending December 31, 2011.
Despite strong sales of titles like Saints Row The Third and WWE '12, low performance for the uDraw game tablet took a significant hit on the company.
"Sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter," said THQ CEO Brian Farrell.
During a conference call with investors, CFO Paul Pucino detailed the extent the uDraw tablet had on the last fiscal quarter.
"From a contribution margin perspective, we would have doubled the profitability in the quarter were it not for uDraw. So it was something in excess of $30 million (£19 million) in operating loss in the quarter as a result of uDraw," Pucino said.
Farrell says that the company plans on realigning its business, including leaving the development of kids' licensed games and ceasing all production of the uDraw tablet.
THQ reportedly laid off 240 employees recently, with Farrell's salary cut in half prior to today's quarterly investor meeting.
Watch a trailer for THQ's Saints Row The Third below:
Despite strong sales of titles like Saints Row The Third and WWE '12, low performance for the uDraw game tablet took a significant hit on the company.
"Sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter," said THQ CEO Brian Farrell.
© THQ
During a conference call with investors, CFO Paul Pucino detailed the extent the uDraw tablet had on the last fiscal quarter.
"From a contribution margin perspective, we would have doubled the profitability in the quarter were it not for uDraw. So it was something in excess of $30 million (£19 million) in operating loss in the quarter as a result of uDraw," Pucino said.
Farrell says that the company plans on realigning its business, including leaving the development of kids' licensed games and ceasing all production of the uDraw tablet.
THQ reportedly laid off 240 employees recently, with Farrell's salary cut in half prior to today's quarterly investor meeting.
Watch a trailer for THQ's Saints Row The Third below:
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