THQ posts loss, cuts 600 jobs

Posted on Saturday, Feb 07 2009 @ 02:15 CET by Thomas De Maesschalck
Game developer THQ announced worse than expected financial results this week and announced it will reduce spending and axe 600 jobs. Excluding one time items, the company posted a loss of 14 cents per share while Wall Street analysts were counting on 7 cents profit per share.
The publisher of franchises such as "Saints Row" and "WWE Smackdown vs Raw" also said on Wednesday that it plans to layoff 600 people in fiscal 2010 and cut spending by $220 million.

"Unquestionably this is a challenging time for THQ," Chief Executive Brian Farrell said. "The video game sector as a whole grew in 2008, and clearly, we did not participate fully in that growth."

Chief Financial Officer Paul Pucino said on a conference call that THQ expects results for the March quarter, its fiscal fourth quarter, to be "significantly below" its previous expectations.
More details at Reuters.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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