THQ Inc. has announced financial results for the second quarter of fiscal 2008 that are consistent with the company's recently announced revised financial guidance.

For the quarter, THQ reported nett sales of US$229.3 million, driven primarily by shipments of Ratatouille, as well as Stuntman: Ignition and Juiced 2: Hot Import Nights, each across multiple game systems. For the same period a year ago, THQ reported nett sales of US$240.2 million.

THQ reported a GAAP nett loss of $7.0 million. On a non-GAAP basis, excluding stock-based compensation expense, the company reported a nett loss of $2.2 million. For the same period a year ago, THQ reported GAAP nett income of $11.6 million. On a non-GAAP basis, excluding stock-based compensation expense, nett income for the year prior was $16.4 million.

For the six months ended September 30, 2007, THQ reported nett sales of $333.8 million, compared with $379.0 million in the corresponding prior-year period. The company reported a GAAP net loss of $16.3 million. On a non-GAAP basis, excluding stock-based compensation expense, the company reported a fiscal 2008 first half nett loss of $8.4 million. For the prior year period, THQ reported a GAAP net loss of $0.5 million. On a non-GAAP basis, excluding stock-based compensation expense, nett income for the prior-year period was $5.9 million.

"While we are disappointed with our recently revised fiscal 2008 financial guidance, we expect a solid second half to drive THQ's 13th consecutive year of revenue growth," said Brian Farrell, THQ president and CEO. "Our proven holiday line-up features WWE SmackDown vs. Raw 2008, scheduled to release on twice as many platforms as last year. We have already shipped Cars 2: Mater-National, a sequel to last year's top-selling family title, as well as games based on Nickelodeon's popular Avatar, Nicktoons and SpongeBob characters."

Farrell continued, "We are well positioned to increase sales and profitability in fiscal 2009, with a solid product slate, including Disney/Pixar's Wall-E, Red Faction 3, Saints Row 2 and our first games based on the UFC."

Recent developments:

    * THQ announced Saints RowM 2 for Xbox 360 and PlayStation 3 for fiscal 2009
    * The company doubled its Nintendo DS revenue from the prior year, driven primarily by Ratatouille and the success of Drawn to Life, a new original property created specifically for the Nintendo DS system
    * THQ strengthened the breadth of its product offering for family and casual gamers by:
    [list]
    * entering into an agreement with American Girl, a division of Mattel, Inc., for rights to publish video games based on the company's line of popular dolls and books, and
    * announcing the upcoming launch of its Xbox Live arcade portfolio, featuring SpongeBob SquarePants: Underpants Slam

* During the quarter, the company repurchased $42 million of its common stock. THQ's board recently authorised an additional $25 million for stock repurchase. As a result, the company has $42 million available for repurchase.[/list]
Fiscal 2008 guidance:

THQ reaffirmed its recently issued guidance for the third and fourth quarter, and full fiscal year ending March 31, 2008 as follows:

    * For the fiscal year ending March 31, 2008, THQ expects nett sales of approximately $1.06 billion.
    * For the fiscal third quarter ending December 31, 2007, the company expects to report nett sales of approximately $490 million.
    * For the fiscal fourth quarter ending March 31, 2008, THQ expects to report net sales of approximately $240 million.