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THQ
Les résultats au troisième trimestre de l'année fiscal 2006

Communiqué en anglais

Edition du 10.02.06 

 

 

THQ REPORTS FISCAL 2006 THIRD QUARTER RESULTS

Company expects 14% - 20% sales growth with higher operating margins in FY 2007

 

AGOURA HILLS, Calif. – February 3, 2006 - THQ Inc. (NASDAQ: THQI) today announced fiscal 2006 third quarter results exceeded previous guidance. The company also established initial guidance for fiscal 2007 of sales growth in the range of 14% to 20% and EPS growth of 34% to 50%.

For the three months ended December 31, 2005, THQ reported net sales of $357.8 million and net income of $47.6 million, or $0.72 per diluted share. These results exceeded the company’s previous guidance of net sales of $320 million and net income of $0.65 per diluted share. For the same period a year ago, THQ reported net sales of $400.3 million and net income of $62.9 million, or $1.05 per diluted share.

For the nine months ended December 31, 2005, the company reported net sales of $658.5 million and net income of $42.2 million, or $0.65 per diluted share. For the same period a year ago, THQ reported net sales of $584.8 million and net income of $52.7 million, or $0.88 per diluted share.

Our strategy to target the mass-market consumer this holiday succeeded,” said Brian Farrell, THQ president and CEO. “In 2005, we gained market share in each of our major markets, especially among the core gamer audience, driving our ranking as the #3 independent video game publisher worldwide, excluding Japan. We continued to diversify our product portfolio, grow our studio system and expand our global sales network, which are key drivers for THQ’s long-term profitable growth.

Farrell continued, “While we view 2006 as a transition year for the industry, THQ is positioned to grow significantly in our fiscal year ending March 31, 2007. During the fiscal year, we plan to release several critically acclaimed new titles targeted to the avid gamer, including Saints Row for Xbox 360, Company of Heroes and Titan Quest for Windows PC, and games based on our industry leading mass-market brands, such as the upcoming Disney/Pixar film Cars.

We are excited about the long-term growth prospects for THQ. We continue to build our pipeline of titles based on our partnerships with some of the world’s leading content providers and our growing portfolio of owned and original properties created by THQ’s studio system, which encompasses 12 internal studios and strong relationships with leading third-party developers. We plan to leverage this pipeline to capitalize on the strong market growth expected over the next cycle.

 

Financial Guidance

THQ reaffirmed previous earnings guidance and increased sales guidance for the full fiscal year ending March 31, 2006, and provided initial guidance for the full fiscal year ending March 31, 2007:

  • For the fourth quarter of fiscal 2006, the company expects net sales of approximately $135 million and net income of about $0.02 per diluted share

  • For the fiscal year ending March 31, 2006, THQ expects net sales of approximately $790 million and net income of approximately $0.67 per diluted share

  • For the fiscal year ending March 31, 2007, the company expects net sales in the range of $900 million to $950 million and higher operating margins resulting in net income in the range of $0.90 to $1.00 per diluted share, excluding the impact of stock option expense, which has not yet been determined

All per share amounts reflect a 3-for-2 stock split effected on September 1, 2005.

 

Recent Developments

  • In calendar 2005, THQ gained market share in each of its major markets and achieved the #3 independent video game software publisher ranking worldwide, excluding Japan, according to the NPD Group, Inc., Chart Track and GfK data

  • During the December quarter, THQ shipped more than 2.5 million units of WWE® SmackDown® vs. Raw® and more than one million units each of Bratz Rock Angelz™, The Incredibles: Rise of the Underminer and SpongeBob SquarePants: Lights Camera PANTS!

  • Fiscal year to date, THQ shipped more than one million units of seven titles, including new original properties Juiced™ and Destroy All Humans!™

  • THQ announced plans to bring dynamic in-game advertising to its video game titles through its partnership with Massive Incorporated

  • THQ announced today that Doug Clemmer has been named head of THQ Wireless

  • THQ announced today that its Kaos studio, which includes industry veterans from the R&D team responsible for the multi-million unit franchise Battlefield 2, is working on an original property for next-generation consoles and Windows PC scheduled for calendar 2007

  • THQ announced the rights to publish videogames for console and select handheld gaming systems based on Columbia Pictures' highly anticipated feature film Monster House from award-winning executive producers Robert Zemeckis and Steven Spielberg

  • THQ and Conan Properties International, LLC announced a worldwide, multi-year licensing agreement for THQ to develop interactive games based on the Conan universe. The agreement covers development for all current and next-gen systems as well as Windows PC, wireless and handheld platforms

 

Investor Conference Call

THQ will host a conference call to discuss fiscal third quarter results today at 11:00 a.m. Eastern/8:00 a.m. Pacific. Please dial (800) 591-6942 or (617) 614-4909, access code 19442768 to listen to the call or visit the THQ Inc. Investor Relations home page at www.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 provided approximately two hours after the live call ends through February 6, 2006, by dialing (888) 286-8010 or (617) 801-6888, access code 50821581.

 


 

THQ Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)

 Three Months Ended

        

 Nine Months Ended

 December 31,

 December 31,

2005  2004  2005  2004

Net sales

$ 357,848 $ 400,315 $ 658,507 $ 584,805
Costs and expenses
   Cost of sales 124,164 126,27 225,31 190,916
   License amortization and royalties 41,899 54,507 66,358 70,511
   Software development amortization 33,129 47,74 80,924 78,492
   Product development 23,954 24,207 64,348 49,537
   Selling and marketing 44,318 48,01 107,941 86,26
   Payment to venture partner 8,537 7,05 11,126 9,087
   General and administrative 17,984 12,298 50,285 37,807
   Total costs and expenses 293,985 320,082 606,292 522,61
Income from operations  63,863  80,233  52,215  62,195
      Interest income 1,826 833 5,763 2,79
Income before income taxes and minority interest  65,689  81,066  57,978  64,985
      Income taxes 18,044 18,057 15,654 12,136
Income before minority interest  47,645  63,009  42,324  52,849
      Minority interest (62) (74) (116) (169)
Net Income $ 47,583 $ 62,935 $ 42,208 $ 52,68
Net income per share – basic $ 0.76 $ 1.08 $ 0.68 $ 0.91
Net income per share – diluted $ 0.72 $ 1.05 $ 0.65 $ 0.88
Shares used in per share calculation – basic 62,982 58,472 62,265 58,183
Shares used in per share calculation – diluted 65,919 59,875 65,154 59,695

Share and earnings per share data have been restated to reflect our three-for-two stock split for shareholders of record as of August 19, 2005, paid September 1, 2005.

 

THQ Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(In thousands)

 December 31,  March 31,
 2005  2005
ASSETS
Cash, cash equivalents and short-term investments $ 296,115 $ 331,173
Accounts receivable, net 187,737 73,7
Inventory 31,189 23,802
Licenses 22,214 12,464
Software development 77,397 57,107
Income taxes receivable 6,601 9,783
Prepaid expenses and other current assets 24,378 14,53
   Total current assets  645,631  522,559
Property and equipment, net 35,363 26,822
Licenses, net of current portion 64,182 75,523
Software development, net of current portion 18,528 8,144
Income taxes receivable, net of current portion 9,513 9,513
Goodwill, net 86,053 83,44
Other long-term assets, net 23,573 21,392
TOTAL ASSETS $ 882,843 $ 747,393
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS’ EQUITY
Accounts payable $ 41,332 $ 36,499
Accrued and other current liabilities 134,674 77,532
Deferred income taxes 8,007 6,841
   Total current liabilities  184,013  120,872
Other long-term liabilities 60,368 72,059
Deferred income taxes, net of current portion 4,466 4,466
Minority interest 1,373 1,238
Common stock 634 607
Additional paid-in capital 389,669 347,462
Accumulated other comprehensive income 12,274 12,851
Retained earnings 230,046 187,838
   Total stockholders’ equity  632,623  548,758
TOTAL LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS’ EQUITY $ 882,843 $ 747,393

 

THQ Inc. and Subsidiaries
Unaudited Supplemental Financial Information

   Three Months Ended  Nine Months Ended
 December 31,  December 31,
 2005  2004  2005  2004
Platform Revenue Mix
Consoles
Sony PlayStation 2 43.3 % 42.6 % 39.5 % 36.1 %
Microsoft Xbox 4.5 6.6 12.2 9.6
Nintendo Game Cube 9.7 11.1 8.2 11.2
57.5 60.3 59.9 56.9
Handheld
Nintendo Game Boy Advance 23.4 27.2 21.5 26.6
Nintendo Dual Screen 4.7 0.6 2.8 0.4
Sony PlayStation Portable 3.7 0.0 2.1 0.0
Wireless 2.5 1.9 4.3 2.9
34.3 29.7 30.7 29.9

PC

8.0 9.2 9.2 11.9

Other

0.2 0.8 0.2 1.3
100.0 % 100.0 % 100.0 % 100.0 %
Geographic Revenue Mix
Domestic 63.1 % 63.0 % 61.1 % 63.0 %
Foreign 36.9 37.0 38.9 37.0
100.0 % 100.0 % 100.0 % 100.0 %

 

 


About THQ
THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software. 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 and www.thqwireless.com. THQ, THQ Wireless, Company of Heroes, Destroy All Humans!, Juiced, Saints Row, The Outfit, Titan Quest and their respective logos are trademarks and/or registered trademarks of THQ Inc.


  [THQ France]

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