THQ Beats Projections for Oct-Dec 2010, Cites Udraw - News
by VGChartz Staff , posted on 02 February 2011 / 3,564 Views
THQ has announced its earnings results for October to December 2010. For the quarter, THQ revenues were $314.6m, down from $356.7m in the same period of 2009. The company lost $14.9m in the quarter, compared to generating $0.542m in profit in the December 2009 quarter. Figures above are based on GAAP accounting measures. Using non-GAAP figures, for the three months ended December 2010, the company reported revenues of $323.1m, compared with $357.0 million a year ago. As of the September 2010 quarter, THQ had projected non-GAAP revenue would reach $300m - $315m - so THQ beat its high end of guidance by 2%. On a non-GAAP basis, THQ profited $28.5m in the current quarter, which is 35 cents per share and also above the forecast. THQ profited $26.6m in the previous December quarter on a non-GAAP basis. THQ explains the differences between the two accounting measures in its financial tables for those curious.
"We posted a strong holiday quarter led by our new uDraw GameTablet, which shipped 1.2 million units. This owned intellectual property provides THQ with a new growth opportunity focused on innovative and creative game play," said THQ President and CEO Brian Farrell. "Our fiscal fourth quarter continues our robust release schedule of high quality, high profile games including Homefront, WWE All Stars, andde Blob 2." Farrell added, "THQ is poised for significant net sales and earnings growth in fiscal 2012 as a result of aggressive investment in owned intellectual properties and major franchises, a lean cost structure, and growing digital revenues. Fiscal 2012 will be driven by the strongest core games line-up in our history, including: Red Faction Armageddon, Warhammer 40,000 Space Marine, MX vs. ATV Aliveand the newest installment of our Saints Row franchise." In addition to shipping 1.2m copies of Udraw, THQ shipped 2.7m units of WWE Smackdown vs. Raw in the December 2010 quarter. For January to March 2011, THQ expects non-GAAP revenue of $245m - $260m. Profit is projected to reach 5-15 cents per share, or about $3.4m - $10.2m on a non-GAAP basis. For the fiscal year ending March 2011, THQ expects revenue to reach $800m - $815m with a loss of about $17m - $24m (25-35 cents per share). On a GAAP basis, during the first nine months (Apr-Dec) of the fiscal year THQ revenues were $541.02m, down from $701.47m over the same period in 2009. The company also plans to focus its kids / casual / family business more on Kinect, Udraw, Move, and 3DS in the March 2012 fiscal year. THQ also noted that "in January 2011, THQ and Mattel, Inc. announced an alliance whereby THQ plans to produce and distribute interactive entertainment based on Mattel's leading brands. THQ plans to publish these brands on the uDraw GameTablet as well as other popular gaming platforms, including mobile devices and social networks." THQ also provided revenue splits by platform on a GAAP basis. Data is summarized below: - In the December 2010 quarter, THQ revenues were $141.423m for Wii (40% of this was likely Udraw and associated games alone), $45.681m for X360, $40.188m for PS3, and $13.227m for PS2. Revenues for DS were $48.989m, and PSP was at $13.079m. PC revenue reached $10.298m, and Wireless contributed $1.705m. - The Wii revenue figure also confirms EA was no more than the fourth biggest publisher on Wii by revenue in Oct-Dec 2010, as Ubisoft ($100m for Just Dance 2 alone, another $40m for Michael Jackson), Nintendo (40% of Wii SW sold), and THQ ($141.4m to EA's $134m) all are known to have beaten EA for Wii revenue this quarter. - Given THQ's revenue figures for the quarter, Wii was 44.9% of revenue, DS was 15.6% of revenue, X360 was 14.5% of revenue, PS3 was 12.8% of revenue, PSP and PS2 were each 4.2% of revenue, PC was 3.3% of revenue, and wireless was 0.5% of revenue. - Compared to the previous December quarter, all platforms dropped for THQ except for Wii. X360 revenue fell from $62.204m to $45.681m, PS3 revenue fell from $57.362m to $40.188m, PS2 revenue from $32.498m to $13.227m, DS revenue fell from $75.04m to $48.989m, PSP revenue fell from $24.497m to $13.079m, Wireless revenue fell from $2.285m to $1.705m, and PC revenue fell from $12.418m to $10.298m. Wii revenue increased from $90.371m to $141.423m. - With THQ likely getting $33 or so per Udraw sold and $14 for Pictionary / Dood's Adventure, the company shipped roughly 6.57m Wii games in Oct-Dec 2010 (comparable to EA's 6.7m). At $30 returned to THQ per game sold on X360 / PS3, the company sold 1.52m X360 games and 1.33m PS3 games. For PS2 and PSP the figure is 0.73m games sold in the holiday quarter. For DS the math works out to about 3.06m games shipped for the quarter. - The major change then from the previous December quarter is THQ shipped over 1m fewer HD games in Oct-Dec 2010 than in Oct-Dec 2009, 1m fewer PS2 games, as well as over 2m fewer games for DS and PSP. Wii offset some of this though, by increasing 2m units from the December 2009 quarter. - This is particularly true for THQ's console business. Wii revenue nearly offset the falls seen for X360, PS3, and PS2. THQ console revenue only dropped from $242.438m to $240.519m since Wii increased by over $50m. Portable revenue (DS, PSP, Wireless) dropped nearly $40m though - from $101.822m to $63.772m. - For April-December 2010, Wii was also the biggest THQ platform by revenue. Of the $541.021m generated in that period, Wii was $173.594m (32.1%), X360 was $104.454m (19.3%), PS3 was $99.921m (18.5%), DS was $85.900m (15.9%), PC was $28.244m (5.2%), PSP was $24.282m (4.5%), PS2 was $19.833m (3.6%), and Wireless with $4.793m was the remaining 0.9%. More earnings fun - including Sony and Konami data - is coming shortly. Contact VGChartz at jmazel@vgchartz.com
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it's official Wii exclusives made a killing this past holiday!!!!!!!!!
All uDraw fans must be happy, thanks to this there must be loads more games in the pipeline for this year.
I said this for the other article too, but GAAP is a method of accounting - stands for something like Generally Accepted Accounting Procedures or something. It simply includes more expenses than Non-GAAP figures do usually. So both are given to show that in a more limited sense company x or y is profiting.
someone please explain in detail what gaap is al these comapnies seem to be profting but on gaap everyones losing wtf
Nice to see a third party doing well on the Wii for a change, I suppose.
If uDraw takes off in EMEAA and Nintendo is convinced to release it in Japan, as it's doing for Just Dance, it could very well end up selling over 5m.
