THQ LOWERS FORECAST CALABASAS COMPANY EXPECTS SOFT EARNINGS.Byline: Gregory J. Wilcox Staff Writer CALABASAS - Entertainment software game maker THQ THQ Toy Headquarters THQ Territorial Headquarters THQ Tehsil Headquarters (Pakistan) THQ The Holy Quran THQ Theater Headquarters Inc. on Wednesday said it expects second-quarter and year-end results to be below analysts estimates. Quarterly, the company said it expects to report revenue in the range of $30 million to $32 million, and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of between $2.7 million and $3.1 million, or 13 cents to 15 cents on a per-share basis. Additionally, THQ expects to take a one-time noncash charge Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. of $9.8 million, or $5.9 million after tax, on products for which development has been discontinued or that are not expected to earn as much as expected. For the year, the company expects earnings per share to be in the range of $1.10 to $1.20, not including the charge, on revenues of between $325 million and $340 million. The consensus of analysts polled by Thomson Financial Thomson Financial A major provider of information, analytical tools, and consulting services to the financial community. The firm, a division of Thomson Corporation, is best known to investors for its First Call segment, which publishes consensus earnings Co.'s First Call pegged quarterly earnings at 3 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. and year-end at $1.95 a share. THQ attributed the revision to several factors. --Substantial investments in marketing and product development to support its expanding product line for the next generation of hardware systems, including Sony's PlayStation 2. --An anticipated slowdown in the overall Nintendo 64 and PlayStation markets as consumers shift attention to new hardware systems. --The strong dollar and infrastructure costs associated with opening new offices in foreign markets. Analysts in the past have said that a slowdown was expected across the industry because of the platform changeover. Brian Farrell
Brian Farrell (born Bernard Bredan Farrell January 9, 1929) is an Irish author, journalist, academic & broadcaster. , THQ's president and chief executive officer, said the company decided to revise its financial estimates after E3, the big electronic entertainment show in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. a few weeks ago. ``We had a very positive reception at the show and what we took away from that is that the retail market is very soft. I don't think (analysts) had factored that into their number,'' he said. THQ made its announcement after the market closed. The company's stock closed Wednesday at $14.69, down 25 cents. |
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