THQ, Inc. (THQI) Posts Smaller Q2 Loss, Suspends/Withdraws Guidance; To Explore Strategic Alternatives as Cash Dwindles

November 5, 2012 4:33 PM EST Send to a Friend
THQ, Inc. (NASDAQ: THQI) reported Q2 non-GAAP EPS of ($1.76) and GAAP EPS (of ($3.06) versus analyst estimate of ($3.47). Revenue for the quarter came in at $107.4 million versus the consensus estimate of $84.38 million.

The company is suspending net sales and earnings guidance, and withdrawing its previous guidance for fiscal 2013.

The calendar movement for the release of games will likely create a need for additional capital. THQ has engaged Centerview Partners LLC to assist the company in evaluating strategic and financing alternatives intended to improve THQ’s overall liquidity, including raising additional capital, preserve the company’s ability to bring the best possible games to market during the most advantageous release windows and to help address the $100 million 5% convertible senior notes due August 2014. There can be no assurance that the evaluation of strategic and financing alternatives will result in a transaction or financing, or that, if completed, said transaction and/or financing will be on attractive terms. THQ does not intend to disclose developments with respect to the progress of its evaluation of strategic and financing alternatives until such time as the Board of Directors approves or completes a transaction or otherwise deems further disclosure appropriate.

Shares are currently halted.

For earnings history and earnings-related data on THQ, Inc. (THQI) click here.


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