AGOURA HILLS, Calif.--(BUSINESS WIRE)--THQ Inc. (NASDAQ: THQI) today reported financial results for the fourth quarter and fiscal year ended March 31, 2011.
Financial Highlights
Q4 Non-GAAP net sales were $248.6 million, consistent with guidance of $245 - $260 million.
Q4 Non-GAAP EPS of $0.15 was at the high end of guidance of $0.05 - $0.15.
| (in millions, except per share data) |
For the Three Months |
For the Twelve Months |
||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| GAAP Net Sales | $ | 124.2 | $ | 197.7 | $ | 665.3 | $ | 899.1 | ||||||||||||||||||
| Non-GAAP Net Sales | $ | 248.6 | $ | 197.4 | $ | 802.3 | $ | 888.7 | ||||||||||||||||||
| GAAP Net Loss | $ | (44.1 | ) | $ | (10.4 | ) | $ | (136.1 | ) | $ | (9.0 | ) | ||||||||||||||
|
Non-GAAP Net Income (Loss) |
$ | 10.5 | $ | 4.4 | $ | (16.0 | ) | $ | 12.7 | |||||||||||||||||
|
GAAP Diluted Loss Per Share |
$ | (0.65 | ) | $ | (0.15 | ) | $ | (2.00 | ) | $ | (0.13 | ) | ||||||||||||||
|
Non-GAAP Diluted Earnings (Loss) Per Share |
$ | 0.15 | $ | 0.06 | $ | (0.24 | ) | $ | 0.19 | |||||||||||||||||
A reconciliation of non-GAAP to GAAP results is provided in the accompanying financial tables.
“THQ posted strong fourth quarter results primarily driven by the success of Homefront,” said THQ President and CEO Brian Farrell. "We have already shipped 2.6 million units, a solid start for this new franchise, which kicks off the strongest pipeline of AAA core games in our history. We also continued to grow the uDraw franchise with the successful international debut of this compelling new tablet. Today, I am pleased to announce that we plan to bring exclusively designed uDraw GameTablets to Microsoft Xbox 360 and Sony PS3 platforms this holiday.”
Farrell continued, “We expect to generate significant growth, profitability and cash in fiscal 2012, driven by the latest installments of multi-million unit selling franchises, Saints Row, Red Faction, Warhammer 40,000, MX vs. ATV, UFC, WWE, and uDraw. We are creating a digital ecosystem for each of these games that will continue to keep consumers engaged and generate additional revenue opportunities beyond the initial retail sale. We also continue to aggressively invest in our digital initiatives, including online social and mobile offerings as well as our Warhammer 40,000: Dark Millennium Online MMO.”
FISCAL 2011 HIGHLIGHTS AND RECENT DEVELOPMENTS
Product Highlights
-
Life to date, THQ’s new owned IP, Homefront,
has shipped 2.6 million units
- For the month of March 2011, Homefront was the #1 title on Xbox 360 and the #3 title on PS3, in the US and the top five European markets1.
- Homefront remains the best-selling week-one new console release in 2011 in the UK.
1Source: NPD (Total US Market, March 2011); GfK (Euro 5, March 2011)
-
In fiscal 2011, THQ shipped:
- 1.7 million units of the uDraw GameTablet,
- 4 million units of WWE branded videogames: SmackDown® vs. Raw® 2011 and WWE All Stars, and
- 3 million units of UFC® Undisputed™ 2010.
New Franchises and Innovations
- In fiscal 2011, THQ added Homefront to its growing portfolio of owned brands, which includes Saints Row®, Red Faction®, Darksiders® and MX vs. ATV®.
- THQ brought to market the uDraw GameTablet, a first-of-its-kind, innovative new gaming accessory, which hit retail store shelves worldwide in fiscal 2011, gaining instant popularity for its creativity and unique functionality. Today the company announced plans to bring exclusively designed uDraw GameTablets to Microsoft Xbox 360 and Sony PS3 platforms this holiday.
- The company continued to increase its investment in digital content, including social and mobile games, today announcing plans to bring Jimmy Buffet’s popular Margaritaville brand to Facebook, iPad and iPhone in fiscal 2012.
First Quarter Fiscal 2012 Release Schedule
THQ has announced the following key releases scheduled for the first quarter of fiscal 2012:
|
Title |
Platforms |
||||
| Xbox 360®, PlayStation®3, PC | |||||
| Xbox 360, PlayStation3, PC | |||||
| Kinect™ for Xbox 360®, PlayStation® Move for PS3™, Wii™ | |||||
|
uDraw GameTablet™ for Wii™, Nintendo 3DS™ |
|||||
|
Kinect for Xbox 360, PlayStation3, uDraw GameTablet for Wii, Nintendo DS™ |
|||||
| Xbox 360, PlayStation3, Wii, Nintendo DS | |||||
| Kinect for Xbox 360 | |||||
Investor Conference Call
THQ will host a conference call to discuss fiscal 2011 fourth quarter results, and fiscal 2012 guidance today at 2:00 p.m. Pacific/5:00 p.m. Eastern. Please dial (877) 356-8075 domestic or (706) 902-0203 international, conference ID 61833420 to listen to the call or visit the THQ Inc. Investor Relations Home page at http://investor.thq.com. The online archive of the broadcast will be available approximately two hours after the live call ends. In addition, a telephonic replay of the conference call will be accessible approximately two hours after the live call ends through May 5, 2011 by dialing (800) 642-1687 domestically, or (706) 645-9291 internationally, conference ID 61833420.
Non-GAAP Financial Measures
In addition to results determined in accordance with GAAP, the company discloses certain non-GAAP financial measures that exclude the following:
- stock-based compensation expense,
- the impact of certain deferred revenue and related costs,
- business realignment expense,
- impact of capitalized interest,
- other-than-temporary impairment on investments and any subsequent realized gains on those investments, and mark-to-market adjustments on investments, and
- other significant charges and benefits.
For non-GAAP purposes, the company uses a fixed, long-term projected tax rate of 15% to evaluate its operating performance, as well as to forecast, plan and analyze future periods.
THQ may consider whether other significant items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.
The company excludes these expenses from its non-GAAP financial measures primarily because its management does not believe they reflect the company's primary business, ongoing operating results or future outlook. THQ's management believes that the use of non-GAAP financial measures provides meaningful supplemental information regarding its financial condition and results of operations, and helps investors compare actual results to its long-term operating goals as well as to its performance in prior periods. The non-GAAP financial measures included in this earnings release have been reconciled to the comparable GAAP results in the accompanying tables, and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
In addition to the reasons stated above, which are generally applicable to each of the items THQ excludes from its non-GAAP financial measures, the company's management uses certain of the non-GAAP financial measures for the following reasons:
Stock-Based Compensation. THQ does not consider stock-based compensation charges when evaluating the performance of its business or formulating its operating plans. Stock-based compensation charges are subject to significant fluctuation outside of the control of management due to the variables used to estimate the fair value of a share-based payment, such as THQ's stock price, interest rates and the volatility of the company's stock price. Further, when considering the impact of equity award grants, THQ places a greater emphasis on the use of such grants as retention tools for long-term stockholder value creation, as well as overall stockholder dilution, rather than the accounting charges associated with such grants.
Deferred Revenue/Costs. The company recognizes the revenue and related costs from the sale of certain titles for which the online service is determined to be a deliverable over the estimated online service period. Although the company defers the recognition of all or a portion of its net revenue and costs with respect to these titles, there is no impact to its operating cash flow. THQ's management excludes the impact of deferred net revenue and costs when evaluating the company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team.
Business Realignment Expense. Although THQ has incurred business realignment expenses in the past, each charge relates to a discrete event based on a unique set of business objectives. Management does not believe these charges reflect the company's primary business, ongoing operating results or future outlook. As such, the company believes it is appropriate to exclude these expenses from its non-GAAP financial measures.
Impact of Capitalized Interest. The company capitalizes interest expense as a component of capitalized software development. THQ’s management considers interest cost to be a financing cost in the period in which it is incurred, and thus excludes the impact of the capitalization of interest costs to software development and the subsequent amortization expense when evaluating the company’s operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team.
Other significant charges and benefits. THQ does not consider certain significant charges and benefits that are related to discrete events or market conditions to be indicative of ongoing operating results or future outlook. As a result, the company believes it appropriate to exclude expenses and benefits such as legal settlements or market-related impairments, from its non-GAAP financial measures.
Fiscal Periods
Our fiscal year ends on the Saturday nearest March 31st. For simplicity, we present all fiscal periods as ending on a calendar month end. In fiscal 2011, our fourth quarter and fiscal year ended on April 2, 2011. In fiscal 2010, our fourth quarter and fiscal year ended on April 3, 2010. The fiscal three month periods ended March 31, 2011 and 2010 consisted of 13 weeks. The fiscal twelve month periods ended March 31, 2011 and 2010 consisted of 52 and 53 weeks, respectively.
About THQ
THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software. The company develops its products for all popular game systems, personal computers and wireless devices. Headquartered in Los Angeles County, California, THQ sells product through its global network of offices located throughout North America, Europe and Asia Pacific. More information about THQ and its products may be found at www.thq.com. THQ, Darksiders, Homefront, MX vs ATV, MX vs ATV: Alive, Red Faction, Red Faction: Armageddon, Saints Row, uDraw, uDraw GameTablet and their respective logos are trademarks and/or registered trademarks of THQ Inc.
Microsoft, Xbox, Xbox 360, Xbox Live, the Xbox logos, and the Xbox Live logo are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or other countries.
"PlayStation" is a registered trademark of Sony Computer Entertainment Inc.
Wii, Nintendo DS and Nintendo DSi are trademarks of Nintendo.
All other trademarks are property of their respective owners.
The statements contained in this press release that are not historical facts may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the company's expectations to generate significant growth, profitability and cash in fiscal 2012 and for product releases in future periods. These forward-looking statements are based on current expectations, estimates and projections about the business of THQ Inc. and its subsidiaries (collectively referred to as “THQ”) and are based upon management’s current beliefs and certain assumptions made by management. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, business, competitive, economic, legal, political and technological factors affecting our industry, operations, markets, products or pricing. Readers should carefully review the risk factors and the information that could materially affect THQ’s financial results, described in other documents that THQ files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal period ended March 31, 2010, and subsequent Quarterly Reports on Form 10-Q, and particularly the discussion of trends and risk factors set forth therein. Unless otherwise required by law, THQ disclaims any obligation to update its view on any such risks or uncertainties or to revise or publicly release the results of any revision to these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
| THQ Inc. and Subsidiaries | ||||||||||||||||||||||||||
| Unaudited Consolidated Statements of Operations | ||||||||||||||||||||||||||
|
(In thousands, except per share data) |
||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| Net sales | $ | 124,237 | $ | 197,668 | $ | 665,258 | $ | 899,137 | ||||||||||||||||||
| Cost of sales: | ||||||||||||||||||||||||||
| Product costs | 52,463 | 72,042 | 272,021 | 318,590 | ||||||||||||||||||||||
| Software amortization and royalties | 24,711 | 54,527 | 129,237 | 196,956 | ||||||||||||||||||||||
| License amortization and royalties | 9,039 | 15,337 | 118,287 | 110,503 | ||||||||||||||||||||||
| Total cost of sales | 86,213 | 141,906 | 519,545 | 626,049 | ||||||||||||||||||||||
| Gross profit | 38,024 | 55,762 | 145,713 | 273,088 | ||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Product development | 27,007 | 23,811 | 79,374 | 87,233 | ||||||||||||||||||||||
| Selling and marketing | 47,904 | 25,231 | 156,075 | 131,954 | ||||||||||||||||||||||
| General and administrative | 12,229 | 13,287 | 45,356 | 57,879 | ||||||||||||||||||||||
| Restructuring | 455 | 2,813 | 602 | 5,671 | ||||||||||||||||||||||
| Total operating expenses | 87,595 | 65,142 | 281,407 | 282,737 | ||||||||||||||||||||||
| Operating loss | (49,571 | ) | (9,380 | ) | (135,694 | ) | (9,649 | ) | ||||||||||||||||||
| Interest and other income (expense), net | 4,882 | (707 | ) | 524 | (2,056 | ) | ||||||||||||||||||||
| Loss before income taxes | (44,689 | ) | (10,087 | ) | (135,170 | ) | (11,705 | ) | ||||||||||||||||||
| Income taxes | (633 | ) | 2,198 | 928 | 247 | |||||||||||||||||||||
| Net loss prior to allocation of noncontrolling interest | (44,056 | ) | (12,285 | ) | (136,098 | ) | (11,952 | ) | ||||||||||||||||||
| Loss attributable to noncontrolling interest | — | 1,887 | — | 2,935 | ||||||||||||||||||||||
| Net loss attributable to THQ Inc. | $ | (44,056 | ) | $ | (10,398 | ) | $ | (136,098 | ) | $ | (9,017 | ) | ||||||||||||||
| Loss per share attributable to THQ Inc. - basic | $ | (0.65 | ) | $ | (0.15 | ) | $ | (2.00 | ) | $ | (0.13 | ) | ||||||||||||||
| Loss per share attributable to THQ Inc. - diluted | $ | (0.65 | ) | $ | (0.15 | ) | $ | (2.00 | ) | $ | (0.13 | ) | ||||||||||||||
| Shares used in per share calculation - basic | 68,119 | 67,624 | 67,910 | 67,522 | ||||||||||||||||||||||
| Shares used in per share calculation - diluted | 68,119 | 67,624 | 67,910 | 67,522 | ||||||||||||||||||||||
| THQ Inc. and Subsidiaries | ||||||||||||||||||||||||||
|
Reconciliation of GAAP net loss to Non-GAAP net income (loss)(a) |
||||||||||||||||||||||||||
|
(In thousands, except per share data) |
||||||||||||||||||||||||||
|
For the Three Months |
For the Twelve Months |
|||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| Net sales | $ | 124,237 | $ | 197,668 | $ | 665,258 | $ | 899,137 | ||||||||||||||||||
| Change in deferred net revenue | 124,316 | (253 | ) | 137,075 | (10,485 | ) | ||||||||||||||||||||
| Non-GAAP net sales | $ | 248,553 | $ | 197,415 | $ | 802,333 | $ | 888,652 | ||||||||||||||||||
|
For the Three Months |
For the Twelve Months |
|||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| Operating loss | $ | (49,571 | ) | $ | (9,380 | ) | $ | (135,694 | ) | $ | (9,649 | ) | ||||||||||||||
| Non-GAAP adjustments affecting operating loss: | ||||||||||||||||||||||||||
|
JAKKS preferred return rate reduction(b) |
— | — | — | (24,221 | ) | |||||||||||||||||||||
|
JAKKS and WWE settlement(c) |
— | — | — | 29,488 | ||||||||||||||||||||||
| Change in deferred net revenue | 124,316 | (253 | ) | 137,075 | (10,485 | ) | ||||||||||||||||||||
|
Change in deferred cost of sales(d) |
(67,262 | ) | 303 | (68,518 | ) | 5,462 | ||||||||||||||||||||
|
License impairment charges(e) |
— | — | 30,296 | — | ||||||||||||||||||||||
|
Business realignment expenses(d) |
2,232 | 11,715 | 13,145 | 14,812 | ||||||||||||||||||||||
|
Stock-based compensation and related costs(d) |
2,017 | 2,535 | 8,843 | 10,196 | ||||||||||||||||||||||
|
Amortization of capitalized interest(f) |
672 | — | 672 | — | ||||||||||||||||||||||
| Total non-GAAP adjustments affecting operating loss | 61,975 | 14,300 | 121,513 | 25,252 | ||||||||||||||||||||||
|
Non-GAAP operating income (loss) |
$ | 12,404 | $ | 4,920 | $ | (14,181 | ) | $ | 15,603 | |||||||||||||||||
|
For the Three Months |
For the Twelve Months |
|||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| Net loss attributable to THQ Inc. | $ | (44,056 | ) | $ | (10,398 | ) | $ | (136,098 | ) | $ | (9,017 | ) | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||
| Non-GAAP adjustments affecting operating loss | 61,975 | 14,300 | 121,513 | 25,252 | ||||||||||||||||||||||
|
Realignment attributable to noncontrolling interest(g) |
— | (1,050 | ) | — | (1,050 | ) | ||||||||||||||||||||
|
Gain on sale of investments(h) |
— | — | (107 | ) | (640 | ) | ||||||||||||||||||||
|
Mark-to-market adjustments on investments(i) |
— | (2 | ) | — | (157 | ) | ||||||||||||||||||||
|
Capitalized interest expense(f) |
(4,990 | ) | — | (4,990 | ) | — | ||||||||||||||||||||
| Interest and other income (expense), net | — | — | (72 | ) | (63 | ) | ||||||||||||||||||||
|
Income tax adjustments(j) |
(2,477 | ) | 1,566 | 3,752 | (1,657 | ) | ||||||||||||||||||||
| Non-GAAP net income (loss) | $ | 10,452 | $ | 4,416 | $ | (16,002 | ) | $ | 12,668 | |||||||||||||||||
|
Non-GAAP earnings (loss) per share(k) |
$ | 0.15 | $ | 0.06 | $ | (0.24 | ) | $ | 0.19 | |||||||||||||||||
___________________
Notes:
| (a) | See explanation above regarding the company's practice on reporting non-GAAP financial measures. | |
| (b) | Represents the one-time reduction in accrued joint venture partner expense resulting from the settlement of the preferred return rate with JAKKS Pacific. | |
| (c) | Represents the expense related to the settlement of litigation with WWE and JAKKS Pacific in December 2009. | |
| (d) | See table below for further detail related to income statement classification of these adjustments. | |
| (e) | The company reevaluated the sales potential of games based on its kids movie-based licenses. Based on recent industry trends, the company lowered expectations for this category, which resulted in a $30.3 million impairment of kids movie-based licenses for games that have not yet been released; this charge is included in "Cost of sales - License amortization and royalties" in our GAAP statement of operations for the twelve months ended March 31, 2011. | |
| (f) | Represents interest expense capitalized to software development and subsequent amortization. | |
| (g) | Represents realignment attributable to noncontrolling interest. | |
| (h) | Realized gains on sales of investments to the extent we had previously excluded a related other-than-temporary impairment from non-GAAP amounts. | |
| (i) | Mark-to-market adjustments, including the impact of changes in foreign currency rates, related to certain of our available-for-sale investment securities; these amounts are recorded in “Accumulated other comprehensive income,” a component of stockholders' equity, on our balance sheet until realized. Adjustment also may include unrealized gains on trading Auction Rate Securities (ARS), partially offset by related unrealized losses on a put option received in connection with the ARS; this amount is recorded in “Interest and other income (expense), net.” | |
| (j) | For non-GAAP purposes, the company uses a fixed, long-term projected tax rate of 15% to evaluate its operating performance, as well as to forecast, plan and analyze future periods. | |
| (k) | Non-GAAP earnings (loss) per share has been calculated using diluted shares before applying the “if-converted” method relative to the Notes issued in August 2009. | |
The following table provides further detail on the income statement classification of certain non-GAAP adjustments that impact cost and expenses (in thousands):
|
For the Three Months |
For the Twelve Months |
||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
| Change in deferred cost of sales: | |||||||||||||||||||||||||
| Change in deferred product costs | $ | (31,544 | ) | $ | 183 | $ | (30,997 | ) | $ | 2,690 | |||||||||||||||
| Change in deferred software amortization and royalties | (32,580 | ) | 120 | (32,580 | ) | 2,772 | |||||||||||||||||||
| Change in deferred license amortization and royalties | (3,138 | ) | — | (4,941 | ) | — | |||||||||||||||||||
| Total change in deferred cost of sales | $ | (67,262 | ) | $ | 303 | $ | (68,518 | ) | $ | 5,462 | |||||||||||||||
| Business realignment expenses: | |||||||||||||||||||||||||
|
Cost of sales - software amortization and royalties(a) |
$ | 40 | $ | 7,853 | $ | 9,922 | $ | 7,853 | |||||||||||||||||
|
Cost of sales - license amortization and royalties(a) |
375 | — | 375 | — | |||||||||||||||||||||
| Product development | 929 | 1,049 | 1,727 | 727 | |||||||||||||||||||||
| Selling and marketing | 129 | — | 166 | 497 | |||||||||||||||||||||
| General and administrative | 304 | — | 353 | 64 | |||||||||||||||||||||
| Restructuring | 455 | 2,813 | 602 | 5,671 | |||||||||||||||||||||
| Total business realignment expenses | $ | 2,232 | $ | 11,715 | $ | 13,145 | $ | 14,812 | |||||||||||||||||
| Stock-based compensation and related costs: | |||||||||||||||||||||||||
| Cost of sales - software amortization and royalties | $ | 619 | $ | 682 | $ | 2,761 | $ | 3,408 | |||||||||||||||||
|
Product development(b) |
546 | 586 | 1,098 | 1,763 | |||||||||||||||||||||
|
Selling and marketing(b) |
246 | 332 | 1,192 | 843 | |||||||||||||||||||||
|
General and administrative(b) |
606 | 935 | 3,792 | 4,182 | |||||||||||||||||||||
| Total stock-based compensation and related costs | $ | 2,017 | $ | 2,535 | $ | 8,843 | $ | 10,196 | |||||||||||||||||
___________________
Notes:
| (a) |
In fiscal 2011, the company reevaluated its strategy of adapting certain Western content for free-to-play online games in Asian markets. This resulted in a $9.9 million write-off of capitalized software development and a $0.4 million write-off of capitalized licenses related to the cancellation of Company of Heroes Online and WWE Online. |
|
|
(b) |
Stock-based compensation expense for the twelve months ended March 31, 2011 and 2010 is net of the impact of the reversal of a portion of payroll tax accruals established in fiscal 2007 during our historical stock option grant investigation. | |
| THQ Inc. and Subsidiaries | ||||||||||||
| Unaudited Consolidated Balance Sheets | ||||||||||||
|
(In thousands) |
||||||||||||
|
March 31, |
March 31, |
|||||||||||
| ASSETS | ||||||||||||
| Cash, cash equivalents and short-term investments | $ | 85,603 | $ | 271,319 | ||||||||
| Short-term investments, pledged | — | 22,774 | ||||||||||
| Accounts receivable, net of allowances | 161,574 | 41,318 | ||||||||||
| Inventory | 31,905 | 13,970 | ||||||||||
| Licenses | 32,869 | 56,555 | ||||||||||
| Software development | 222,631 | 132,223 | ||||||||||
| Deferred income taxes | 8,200 | 5,590 | ||||||||||
| Income taxes receivable | — | 4,914 | ||||||||||
| Prepaid expenses and other current assets | 56,908 | 13,864 | ||||||||||
| Total current assets | 599,690 | 562,527 | ||||||||||
| Property and equipment, net | 28,960 | 28,374 | ||||||||||
| Licenses, net of current portion | 85,367 | 83,752 | ||||||||||
| Software development, net of current portion | 49,858 | 26,792 | ||||||||||
| Deferred income taxes | 516 | 433 | ||||||||||
| Long-term investments | — | 1,851 | ||||||||||
| Other long-term assets, net | 10,014 | 10,600 | ||||||||||
| TOTAL ASSETS | $ | 774,405 | $ | 714,329 | ||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Accounts payable | $ | 100,550 | $ | 40,305 | ||||||||
| Accrued and other current liabilities | 137,922 | 130,929 | ||||||||||
| Deferred revenue, net | 141,060 | 6,403 | ||||||||||
| Secured credit line | — | 13,249 | ||||||||||
| Total current liabilities | 379,532 | 190,886 | ||||||||||
| Other long-term liabilities | 88,042 | 98,825 | ||||||||||
| Convertible senior notes | 100,000 | 100,000 | ||||||||||
| Total liabilities | 567,574 | 389,711 | ||||||||||
| Total THQ Inc. stockholders' equity | 206,831 | 324,355 | ||||||||||
| Noncontrolling interest | — | 263 | ||||||||||
| Total equity | 206,831 | 324,618 | ||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 774,405 | $ | 714,329 | ||||||||
| THQ Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||
| Unaudited Supplemental Financial Information | ||||||||||||||||||||||||||||||||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended GAAP | Twelve Months Ended GAAP | |||||||||||||||||||||||||||||||||||||||||
| Platform Revenue Mix |
March 31, |
March 31, |
March 31, |
March 31, |
||||||||||||||||||||||||||||||||||||||
| Consoles | ||||||||||||||||||||||||||||||||||||||||||
| Microsoft Xbox 360 | $ | 24,193 | 19.5 | % | $ | 55,573 | 28.1 | % | $ | 128,647 | 19.4 | % | $ | 236,929 | 26.3 | % | ||||||||||||||||||||||||||
| Nintendo Wii | 46,546 | 37.5 | 24,196 | 12.2 | 220,140 | 33.1 | 137,219 | 15.3 | ||||||||||||||||||||||||||||||||||
| Sony PlayStation 3 | 16,049 | 12.9 | 46,450 | 23.5 | 115,970 | 17.4 | 199,546 | 22.2 | ||||||||||||||||||||||||||||||||||
| Sony PlayStation 2 | 4,361 | 3.5 | 5,428 | 2.8 | 24,194 | 3.6 | 52,816 | 5.9 | ||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||||
| 91,149 | 73.4 | 131,647 | 66.6 | 488,951 | 73.5 | 626,518 | 69.7 | |||||||||||||||||||||||||||||||||||
| Handheld | ||||||||||||||||||||||||||||||||||||||||||
| Nintendo Dual Screen | 11,969 | 9.6 | 29,370 | 14.9 | 97,869 | 14.7 | 144,272 | 16.0 | ||||||||||||||||||||||||||||||||||
| Sony PlayStation Portable | 5,495 | 4.4 | 7,393 | 3.7 | 29,777 | 4.5 | 44,508 | 5.0 | ||||||||||||||||||||||||||||||||||
| Wireless | 637 | 0.5 | 2,144 | 1.1 | 5,430 | 0.8 | 11,403 | 1.3 | ||||||||||||||||||||||||||||||||||
| 18,101 | 14.5 | 38,907 | 19.7 | 133,076 | 20.0 | 200,183 | 22.3 | |||||||||||||||||||||||||||||||||||
| PC | 14,987 | 12.1 | 27,114 | 13.7 | 43,231 | 6.5 | 72,436 | 8.0 | ||||||||||||||||||||||||||||||||||
| Total Net Sales | $ | 124,237 | 100.0 | % | $ | 197,668 | 100.0 | % | $ | 665,258 | 100.0 | % | $ | 899,137 | 100.0 | % | ||||||||||||||||||||||||||
| Geographic Revenue Mix | ||||||||||||||||||||||||||||||||||||||||||
| Domestic | $ | 64,606 | 52.0 | % | $ | 113,250 | 57.3 | % | $ | 445,134 | 66.9 | % | $ | 558,673 | 62.1 | % | ||||||||||||||||||||||||||
| Foreign | 59,631 | 48.0 | 84,418 | 42.7 | 220,124 | 33.1 | 340,464 | 37.9 | ||||||||||||||||||||||||||||||||||
| Total Net Sales | $ | 124,237 | 100.0 | % | $ | 197,668 | 100.0 | % | $ | 665,258 | 100.0 | % | $ | 899,137 | 100.0 | % | ||||||||||||||||||||||||||
| Three Months Ended Non-GAAP | Twelve Months Ended Non-GAAP | |||||||||||||||||||||||||||||||||||||||||
| Platform Revenue Mix |
March 31, |
March 31, |
March 31, |
March 31, |
||||||||||||||||||||||||||||||||||||||
| Consoles | ||||||||||||||||||||||||||||||||||||||||||
| Microsoft Xbox 360 | $ | 91,223 | 36.7 | % | $ | 55,500 | 28.1 | % | $ | 201,851 | 25.2 | % | $ | 236,816 | 26.7 | % | ||||||||||||||||||||||||||
| Nintendo Wii | 46,546 | 18.7 | 24,196 | 12.3 | 220,140 | 27.4 | 137,219 | 15.4 | ||||||||||||||||||||||||||||||||||
| Sony PlayStation 3 | 64,190 | 25.8 | 46,478 | 23.5 | 170,811 | 21.3 | 191,393 | 21.5 | ||||||||||||||||||||||||||||||||||
| Sony PlayStation 2 | 4,361 | 1.8 | 5,428 | 2.8 | 24,194 | 3.0 | 52,816 | 6.0 | ||||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||||
| 206,320 | 83.0 | 131,602 | 66.7 | 616,996 | 76.9 | 618,252 | 69.6 | |||||||||||||||||||||||||||||||||||
| Handheld | ||||||||||||||||||||||||||||||||||||||||||
| Nintendo Dual Screen | 11,969 | 4.8 | 29,370 | 14.9 | 97,869 | 12.2 | 144,272 | 16.2 | ||||||||||||||||||||||||||||||||||
| Sony PlayStation Portable | 5,495 | 2.2 | 7,393 | 3.7 | 29,777 | 3.7 | 44,508 | 5.0 | ||||||||||||||||||||||||||||||||||
| Wireless | 759 | 0.3 | 2,144 | 1.1 | 5,551 | 0.7 | 11,403 | 1.3 | ||||||||||||||||||||||||||||||||||
| 18,223 | 7.3 | 38,907 | 19.7 | 133,197 | 16.6 | 200,183 | 22.5 | |||||||||||||||||||||||||||||||||||
| PC | 24,010 | 9.7 | 26,906 | 13.6 | 52,140 | 6.5 | 70,217 | 7.9 | ||||||||||||||||||||||||||||||||||
| Total Non-GAAP Net Sales | $ | 248,553 | 100.0 | % | $ | 197,415 | 100.0 | % | $ | 802,333 | 100.0 | % | $ | 888,652 | 100.0 | % | ||||||||||||||||||||||||||
| Geographic Revenue Mix | ||||||||||||||||||||||||||||||||||||||||||
| Domestic | $ | 137,657 | 55.4 | % | $ | 113,748 | 57.6 | % | $ | 524,498 | 65.4 | % | $ | 555,062 | 62.5 | % | ||||||||||||||||||||||||||
| Foreign | 110,896 | 44.6 | 83,667 | 42.4 | 277,835 | 34.6 | 333,590 | 37.5 | ||||||||||||||||||||||||||||||||||
| Total Non-GAAP Net Sales | $ | 248,553 | 100.0 | % | $ | 197,415 | 100.0 | % | $ | 802,333 | 100.0 | % | $ | 888,652 | 100.0 | % | ||||||||||||||||||||||||||