THQ announced today that they have upped their fourth quarter financial forecast from $130-$150 million in non-GAAP net sales to $160-$170 million. This has the added benefit of reducing their non-GAAP net loss per share forecast from $0.35-$0.50 to a non-GAAP net loss of $0.10-$0.20.
The publisher credited strong net sales for Saints Row: The Third (which has now shipped over 4 million units), “higher-than-expected” digital sales of Saints Row: The Third DLC, and “slightly higher-than-expected” sales for UFC Undisputed 3.
Of course with THQ every slightly less gloomy cloud comes with its own tarnished silver lining, and this bit of unexpected not-as-horrible news comes with the confirmation that Darksiders II has been pushed back from its June 26th launch to sometime in August, as speculated last week.
The good news for THQ is that the improvement in their financial situation has pushed their stock price up about $0.15 to $0.60 per share, which brings them that much closer to avoiding being delisted.
Full press release below:
THQ Fiscal 2012 Fourth Quarter Results to Exceed Prior Expectations
Year-End Cash Balance of $76 Million Significantly Exceeds Prior Guidance
AGOURA HILLS, Calif., Apr 18, 2012 (BUSINESS WIRE) –THQ Inc. (NASDAQ: THQI) today provided preliminary, unaudited financial results for the fourth quarter ended March 31, 2012.
For the fourth quarter, THQ expects to report non-GAAP net sales of $160 million to $170 million, which is above the company’s previous outlook of non-GAAP net sales in the range of $130 million to $150 million. Revised net sales expectations reflect:
continued strong net sales of the critically-acclaimed Saints Row(R): The Third(TM), which to date has shipped in more than four million units;
higher-than-expected digital sales, largely driven by the robust digital content of Saints Row: The Third; and
slightly higher-than-expected net sales of UFC(R) Undisputed(R) 3, which was released mid-February 2012 to highly-favorable critical reviews, achieving an average Metacritic score of 85.
The company currently expects a fiscal fourth quarter non-GAAP net loss per share in the range of $0.10 to $0.20, compared to its previous expectation of a net loss per share in the range of $0.35 to $0.50.
THQ expects to report cash and cash equivalents of approximately $76 million at March 31, 2012, three times higher than the previous expectation for its year-end cash balance, due to better-than-expected operating results in the fourth quarter, as well as earlier-than-anticipated cash receipts. Additionally, the company ended the quarter with no outstanding borrowings on its $50 million credit facility, and did not borrow against the facility during the quarter. The company expects to utilize a substantial portion of its cash and cash equivalents as well as its credit facility as it launches its slate for the 2013 fiscal year, beginning with Darksiders(R) II.
THQ’s GAAP results for the fourth quarter ended March 31, 2012 are expected to include non-cash software development charges of approximately $30 million to $50 million resulting from decisions made related to the company’s previously-announced product strategy.
THQ will report full GAAP and non-GAAP fiscal 2012 fourth quarter and full-year results, along with a reconciliation of those results, and provide its outlook for fiscal 2013 on Tuesday, May 15, 2012. Conference call details will be provided closer to the date.