THQ Dances All the Way to the Bank
Quick everyone, gather 'round! We have a tale of a company already in the black adding even more to that bottom line.
Published: February 2, 2005
Look, we know everyone loves reading financial reports, because let's face it, it's just light, fun reading. And really, we're both extremely lazy and utterly convinced that you all want nothing more than to get the straight poop on THQ's numbers from this year's fiscal third quarter (that's what's known as "the holiday season" among bleary-eyed game editors and near-comatose game store employees). Hint: this is usually where most companies make their cashola for the year.
And made it they did. Some of the highlights from the torrent of text you'll soon be able to pour over were sales jumping 37% to $400 Million and a whopping four titles cracking the 2 Million units shipped mark. Impressive? Yeah, we'd say so, but why bore you with all our wit?
[blockquote]Net sales advanced 37% for the third quarter to a record $400.3 million, from $293.1 million in the prior-year period. Net income more than doubled to a record $62.9 million, or $1.58 per diluted share. This included $0.20 per diluted share from research and development tax credits claimed for prior years. This compares with net income of $30.4 million, or $0.78 per diluted share, for the fiscal 2004 third quarter.
For the nine months ended December 31, 2004, net sales grew 13% to $584.8 million from $517.7 million for the same period a year ago. Net income for the first nine months of fiscal 2005 was $52.7 million, or $1.32 per diluted share, which included the tax credit mentioned above. For the nine months ended December 31, 2003, THQ reported net income of $30.4 million, or $0.78 per diluted share.
"Our performance during the holiday quarter far surpassed our original expectations in all major markets," said Brian Farrell, President and CEO, THQ. "The combination of sound strategic positioning for the holidays and solid execution in a highly competitive market drove our exceptionally strong results for the period."
Fiscal year-to-date, THQ shipped more than four million units of The Incredibles, two million units of The SpongeBob SquarePants Movie, two million units of WWE SmackDown! vs. Raw, two million units of Finding Nemo and one million units of SpongeBob SquarePants: Battle for Bikini Bottom(TM). In addition, original properties Tak 2: The Staff of Dreams and Full Spectrum Warrior(TM) are approaching shipments of one million units. The company also said that MX Unleashed, launched in February 2004, recently surpassed one million units shipped.
Financial Guidance
THQ confirmed previous guidance for the fiscal fourth quarter and increased guidance for the full fiscal year ending March 31, 2005:
* For the fourth quarter of fiscal 2005, the company continues to expect net sales of approximately $165 million and net income of about $0.21 per diluted share.
* For the fiscal year ending March 31, 2005, THQ now expects record net sales of approximately $750 million and record net income of approximately $1.53 per diluted share, up from previous guidance of net sales of $680 million and earnings per diluted share of $1.10.
* THQ Wireless is expected to contribute approximately $25 million of THQ's net sales in fiscal 2005, up from previous guidance of $20 million.
"We are on track to post excellent results for fiscal 2005," said Farrell. "Our strong portfolio of both licensed and original properties and our world- class product development organization provide the foundation for THQ's long- term success."
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That roar you hear is apparently the cacophony of opening cash registers. And thus concludes another episode of Financial Bedtime Stories.
And made it they did. Some of the highlights from the torrent of text you'll soon be able to pour over were sales jumping 37% to $400 Million and a whopping four titles cracking the 2 Million units shipped mark. Impressive? Yeah, we'd say so, but why bore you with all our wit?
[blockquote]Net sales advanced 37% for the third quarter to a record $400.3 million, from $293.1 million in the prior-year period. Net income more than doubled to a record $62.9 million, or $1.58 per diluted share. This included $0.20 per diluted share from research and development tax credits claimed for prior years. This compares with net income of $30.4 million, or $0.78 per diluted share, for the fiscal 2004 third quarter.
For the nine months ended December 31, 2004, net sales grew 13% to $584.8 million from $517.7 million for the same period a year ago. Net income for the first nine months of fiscal 2005 was $52.7 million, or $1.32 per diluted share, which included the tax credit mentioned above. For the nine months ended December 31, 2003, THQ reported net income of $30.4 million, or $0.78 per diluted share.
"Our performance during the holiday quarter far surpassed our original expectations in all major markets," said Brian Farrell, President and CEO, THQ. "The combination of sound strategic positioning for the holidays and solid execution in a highly competitive market drove our exceptionally strong results for the period."
Fiscal year-to-date, THQ shipped more than four million units of The Incredibles, two million units of The SpongeBob SquarePants Movie, two million units of WWE SmackDown! vs. Raw, two million units of Finding Nemo and one million units of SpongeBob SquarePants: Battle for Bikini Bottom(TM). In addition, original properties Tak 2: The Staff of Dreams and Full Spectrum Warrior(TM) are approaching shipments of one million units. The company also said that MX Unleashed, launched in February 2004, recently surpassed one million units shipped.
Financial Guidance
THQ confirmed previous guidance for the fiscal fourth quarter and increased guidance for the full fiscal year ending March 31, 2005:
* For the fourth quarter of fiscal 2005, the company continues to expect net sales of approximately $165 million and net income of about $0.21 per diluted share.
* For the fiscal year ending March 31, 2005, THQ now expects record net sales of approximately $750 million and record net income of approximately $1.53 per diluted share, up from previous guidance of net sales of $680 million and earnings per diluted share of $1.10.
* THQ Wireless is expected to contribute approximately $25 million of THQ's net sales in fiscal 2005, up from previous guidance of $20 million.
"We are on track to post excellent results for fiscal 2005," said Farrell. "Our strong portfolio of both licensed and original properties and our world- class product development organization provide the foundation for THQ's long- term success."
[/blockquote]
That roar you hear is apparently the cacophony of opening cash registers. And thus concludes another episode of Financial Bedtime Stories.
