THQ Slides on Weak Outlook; Where's Wall-E?
Oh, Wall-E, where did you go?
THQ (THQI) shares hit the skids in late trading, after the videogame publisher provided a weak outlook for the March 2009 fiscal year.
For the fiscal second quarter ended September, the company posted sales of $164.8 million and a non-GAAP loss of 46 cents a share. THQ noted that this was worse than its previously forecast loss of 35-39 cents a share “primarily due to lower-than-anticipated international sales” of its Wall-E game and higher-than-expected sales returns and allowances.
THQ unveiled a new strategic plan that includes the closure of five studios, resulting in the reduction of 250 jobs, or about 17 percent of its studio staff. The company also cut its fiscal 2010 product development spending plans by about $100 million, which brings its total budget for 2010 $30 million below the 2009 level.