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Sunday, Jun 4, 2023

Bottom Falls Out of THQ Stock

Shares in video game publisher THQ Inc. dropped by 50 percent on Tuesday, an apparent response by investors to the company’s need for additional financing to release its games. Shares in the Agoura Hills game maker closed at $1.50 on the Nasdaq. A day earlier, after reporting fiscal second quarter earnings, shares closed at $3.02. The downward stock movement is the latest hit for a company that has financially struggled in recent years resulting in changes in its title mix, executive turnover and splitting of its stock to avoid being delisted from the NASDAQ. In its earnings release on Monday, THQ announced it had 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 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. The results beat Wall Street analysts’ projections.

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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