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THQ Beats Estimates, Delays Video Game Releases

THQ Inc. beat analysts’ estimates for the quarter as its sequel to its “Darksiders” video game became a top seller. But the company also said it is pushing back the release date of future games as it seeks financing. The Agoura Hills video game maker reported a net loss of $21 million ($3.06 a share) for the fiscal second quarter ended Sept. 30, compared with a loss of $92.4 million ($13.52) in the same period a year earlier. Revenue decreased 26 percent to $107 million. Analysts forecast a loss of $3.47 a share on revenue of $84.3 million, according to Thomson Financial Network. The company reported that “Darksiders II,” an action-adventure and role –playing game sold 1.4 million copies since its release in August. THQ also said it hired Centerview Partners LLC in New York to assist in evaluating additional financing in order to meet its game release calendar, which it pushed back The release of “South Park: The Stick of Truth” was moved from March to early in the 2014 fiscal year, which begins April 1. “Company of Heroes 2” and “Metro: Last Night” will ship in March, later than initially planned. THQ Chairman and Chief Executive Brian Farrell said delaying the release will result in better games that will be more appealing. “Extending development schedules in order to make the best possible titles also has financial implications,” Farrell said. “Yet there can be no doubt which path has the greatest chance of leading to the long-term success of the company.” Financial struggles at the game maker have led to changes in its title mix, executive turnover and splitting of its stock to avoid being delisted from the NASDAQ. Shares gained 16 cents, or less than 6 percent, to close at $3.02.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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