THQ Posts Strong Q3 Results

Third quarter net income grew 50% to $4.8 million (12 cents per share), on $97.3 million in revenue -- a 43% increase over last year. The company attributed its strong results to the successful launches of Summoner 2, Jimmy Neutron Boy Genius and Rocket Power Beach Bandits for the PS2; Monsters, Inc. Scream Arena for the Gamecube; and SpongeBob Squarepants: Revenge of the Flying Dutchman for the GBA. THQ also updated earnings guidance for Q4 and fiscal 2002, predicting that its quarterly revenue will come in at the lower end of the current range: about 95 cents per share for the quarter and about $1.26 per share for the year. Although the company was conservative with its predictions, those estimates nevertheless represent increase in expected earnings per share of almost 25% over last year. "We are pleased with our continued strong performance through the third quarter," said Brian Farrell, president and CEO, THQ. "We have a strong product line-up for the fourth quarter, although our optimism is tempered by the unusual degree of uncertainty in the global economy, the domestic retail environment this holiday season, and the ability of Nintendo and Microsoft to meet their global projections for Gamecube and Xbox sales." Looking forward to fiscal 2003, Farrell said that he is "...confident that THQ can maintain, if not increase, our market share in 2003."