Disappointing Red Faction Sales Widen THQ Q1 Losses

Below-expected sales for Red Faction: Armageddon and several licensed kids titles drove THQ to what it said was a disappointing first quarter, reporting a loss of $38.45 million for the quarter ending June 30. The loss represents a 28 percent drop from the $30.1 million loss reported one year ago, which was at the time in line with the company's guidance. Revenues were reported at $195.2 million, up 31 percent from the $149.4 million reported one year ago. "We are disappointed in our first quarter financial performance," said THQ president and CEO Brian Farrell in a statement. "Sales of Red Faction: Armageddon and our licensed kids titles were below our expectations, and the late release of UFC Personal Trainer also adversely impacted the quarter." Despite the disappointment, Farrell still anticipates a profitable second half of 2011, saying that the third quarter in particular will be the largest in company history. "Despite a light first half, we are looking forward to a strong and profitable second half, including what we expect to be the biggest third quarter, both in revenue and earnings per share, in our company's history, with proven franchises Saints Row, WWE and the uDraw GameTablet, all launching in November," he said.